Stories

This is an alternative look at the funnel by marketers. The digital aspect forms the face of acquiring new customers, whereas the stores represent the actualization of consumers’ intentions into sales and presence of the brand.
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Storyboard•09-10-2026, 09:21
Why Digital-First Brands Are Betting Big on Physical Retail Stores
  • •Offline retail still dominates the Indian apparel market, constituting 83 percent of total sales compared to 17 percent online.
  • •The Indian apparel market is valued at $95.7 billion in CY2025 and is projected to reach $146.3 billion by CY2029.
  • •Digital-first brands like Neeman's and Nykaa are actively expanding their physical store footprint to build trust and counter rising digital advertising costs.
  • •Major retailers like Trent and Jubilant FoodWorks continue to post strong revenue growth alongside aggressive physical store expansions.

Key Questions Answered

The Indian apparel market is valued at $95.7 billion in CY2025 and is projected to reach $146.3 billion by CY2029, registering a compound annual growth rate of 9% as outlined in the CMAI consumer research report.

Trent grew its standalone revenue from operations by 23% year-on-year to ₹5,788 crore in Q2FY27 and expanded its total retail network to 1,342 stores, which included opening its 1,000th Zudio store.

Digital-first brands like Neeman's are expanding offline because rising advertising costs and intense online competition make physical stores a steady and profitable channel, even though digital platforms remain vital for discovery and customer acquisition.