Share of retail leasing by D2C brands more than doubles to 18% in H1 2025

National, October 1, 2025 – CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm, today released its latest report, “India’s D2C Revolution: The New Retail Order”, highlighting that India’s direct-to-consumer (D2C) brands are increasing their offline presence to enhance their connect with the consumers. As compared to 8% in H1 2024, the share of retail leasing by these new-age brands has gone up to 18% in H1 2025 as expanding into physical retail through a mix of formats, from pop-up shops and showrooms to traditional brick-and-mortar stores.

The direct-to-consumer (D2C) model is a retail strategy where a company produces its products and sells them to customers directly through its own channels like website, physical outlets, online marketplaces, and social media platforms. Between 2020 and 2022, several digital-first brands witnessed considerable growth, mainly fuelled by a rise in online shopping during the COVID-19 pandemic. Now they are going omnichannel.

According to Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, offline expansion of D2C brands may be called as their 'mainstreaming'.

"While online shopping continues to grow, physical purchases still account for a majority of transactions, making omnichannel growth important. Unlike a standardized online experience, a physical store allows brands to create a tailored shopping environment that helps them connect deeply with their target audience and reinforce their ethos," he said.

The report further said that the Fashion & Apparel sector dominated the leasing by D2C brands in H1 2025, with a share of 60%. It was followed by Homeware and Furnishings (12%), Jewellery (12%) and Health and Personal Care (6%).

Ram Chandnani, Managing Director, Leasing Services – CBRE India said that offline presence helps brands in tapping into the traditional customer base and deepening their penetration into lower-tier towns.

“Physical stores enhance trust and credibility of the brands and reassures the customers about the product quality. They also allow brands to create a tailored shopping environment. This dual play of digital reach and offline experience is set to define the next chapter of India’s retail growth,” he added.

The report also highlighted that as compared to only malls earlier, D2C brands are diversifying the locations of their outlets. In H1 2025, ~46% of total leasing by these brands was on High Streets. It was followed by ~40% in Malls and ~14% as standalone outlets.

The report also highlighted that as compared to only malls earlier, D2C brands are diversifying the locations of their outlets. In H1 2025, ~46% of total leasing by these brands was on High Streets. It was followed by ~40% in Malls and ~14% as standalone outlets. Moreover, D2C brands are also opting for a mix of formats, from pop-up shops and showrooms to traditional brick-and-mortar stores.

Between January and June, Delhi-NCR saw the highest share of retail leasing among all major cities at 26%. It was followed by Bengaluru at 22% and Hyderabad at 18%.

The report said that the success of the omnichannel strategy is particularly evident in categories such as beauty, fashion, and home decor, where a physical presence can significantly boost conversions. However, outcomes tend to vary basis execution, with top-performing brands leveraging data-driven pilots and strategic partnerships to ensure greater success.