D2C brands lead leasing

October 2, 2025

Fashion and apparel brands dominated India’s retail leasing landscape in the first half of 2025, accounting for nearly 60 per cent of leases by direct-to-consumer (D2C) brands, according to a report released on Wednesday. Following fashion, homeware and furnishings brands, and jewellery each held 12 per cent of retail leasing, while health and personal care brands contributed six per cent. The growth of D2C brands in physical retail has accelerated after years of strong online expansion during the COVID-19 pandemic.

Between 2020 and 2022, many digital-first brands established a strong online presence, and now they are increasingly adopting an omnichannel approach, combining online and offline operations. According to CBRE, retail leasing by new-age brands rose from eight per cent in H1 2024 to 18 per cent in H1 2025, reflecting their expansion through pop-up stores, flagship outlets, and franchise models. “While online shopping continues to grow, physical purchases still account for a majority of transactions, making omnichannel growth important,” said Anshuman Magazine, Chairman and CEO for India, South-East Asia, Middle East, and Africa at CBRE.

Physical stores provide a tailored shopping environment, allowing brands to engage more deeply with customers and reinforce their identity. D2C brands are also diversifying the locations of their outlets. In H1 2025, 46 per cent of total leasing by these brands was on High Streets, followed by 40 per cent in malls and 14 per cent as standalone outlets. The brands are experimenting with a mix of retail formats, including pop-up shops, showrooms, and traditional brick-and-mortar stores, moving beyond the earlier reliance on malls.

Delhi-NCR led retail leasing among major cities, accounting for 26 per cent of leases during the period, followed by Bengaluru at 22 per cent and Hyderabad at 18 per cent.Ram Chandnani, Managing Director of Leasing Services at CBRE India, highlighted the value of offline presence for D2C brands. “Physical stores enhance trust and credibility, reassure customers about product quality, and allow brands to create a tailored shopping environment. This combination of digital reach and offline experience will define the next phase of India’s retail growth,” he said.The trend indicates that fashion and apparel brands are consolidating their leadership in physical retail, while new-age D2C players are increasingly integrating offline operations to reach wider audiences, enhance brand engagement, and strengthen their presence across diverse city and High Street locations.