Fashion, apparel brands account for 60 pc of leasing by D2C in H1 2025: Report
Fashion and apparel brands grabbed nearly 60% of retail leasing deals from direct-to-consumer (D2C) brands in the first half of 2025, according to a new CBRE report. Homeware and furnishings followed with 12%, jewelry at another 12%, and health and personal care products at 6%.
Many digital-first brands exploded in popularity between 2020 and 2022, thanks to the COVID-19 pandemic’s surge in online shopping. Now, these companies are blending their online worlds with physical stores to create a true omnichannel experience.
The report shows D2C brands’ share of overall retail leasing jumped to 18% in H1 2025, up from just 8% in the same period last year. They’re expanding through pop-up shops, flagship stores, and franchise locations to reach more customers.
“Online shopping keeps growing, but physical buys still dominate most transactions, so omnichannel strategies matter a lot,” said Anshuman Magazine, Chairman and CEO for India, South-East Asia, Middle East, and Africa at CBRE. Physical stores let brands build a unique shopping vibe that connects better with shoppers and highlights their brand story, unlike the one-size-fits-all online setup.
D2C brands aren’t sticking to malls anymore—they’re spreading out. In H1 2025, a huge 46% of their leasing happened on high streets, 40% in malls, and 14% as standalone outlets. They’re mixing it up with everything from quick pop-ups and showrooms to classic brick-and-mortar shops.
Top cities led the charge: Delhi-NCR topped the list with 26% of D2C retail leasing, followed by Bengaluru at 22% and Hyderabad at 18%.
An offline presence helps these brands tap into loyal traditional customers and push deeper into smaller towns, said Ram Chandnani, Managing Director of Leasing Services at CBRE India. “Physical stores build trust and confidence in product quality,” he noted. “This mix of digital reach and in-person experiences will shape India’s retail boom in the years ahead.”
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