D2C brands dominate retail leasing in India H1 2025: CBRE report

Fashion and apparel brands were the dominant force in direct-to-consumer (D2C) retail leasing in the first half of 2025, capturing nearly 60 percent of all new leases, according to a recent report by CBRE South Asia.

The report, titled India’s D2C Revolution: The New Retail Order, revealed that the overall share of retail leasing claimed by D2C brands more than doubled to 18 percent in H1 2025, a significant jump from 8 percent in the first half of 2024 and 15 percent in the second half. The accessories category was followed by homeware and furnishings and jewellery, which each accounted for 12 percent of new D2C leases, while the health and personal care segment made up 6 percent.

The surge in physical store presence underscores the importance of an omnichannel strategy, even as online shopping grows. Anshuman Magazine, chairman and CEO for India, South-East Asia, Middle East & Africa at CBRE, described this notable move toward physical locations as the "mainstreaming of D2C brands".

In a shift from traditional mall spaces, High streets emerged as the preferred format for D2C players, making up approximately 46 percent of total leasing activity in H1 2025. Malls followed at 40 percent, with standalone outlets accounting for 14 percent.

Fueling this growth, these digital-first brands are diversifying their physical presence through various formats, including pop-ups, flagship outlets, showrooms, and franchise stores, aiming to deepen market penetration after seeing rapid growth between 2020 and 2022. Geographically, Delhi-NCR led the country in retail leasing activity with a 26 percent share from January to June 2025, followed by Bengaluru at 22 percent and Hyderabad at 18 percent.