Shopping mall developers are aggressively opening their doors to online-only D2C firms stepping into physical spaces as a means of responding to the dynamic nature of the market, the growing popularity of digital-first brands, and the expanding Gen Z consumer base.
“D2C brands are moving to the next phase of growth and recognise the need for an all-channel approach to reach more consumers and go deeper into geographies. More and more D2C brands are today going offline,” commented Rajneesh Mahajan, CEO, Inorbit Malls.
Developers of malls have revealed that they are developing pop-up stores, trial store concepts, and short-term leasing arrangements to give D2C businesses a chance to test the market before committing to long-term leases.
V Muhammad Ali, CEO of Forum Malls and Prestige Group, announced that the company has signed three D2C brand outlets with Litestore, a retail solutions provider. Several D2C brands are asking about permanent space, Ali continued. In order to provide its offerings more variety, the mall is also eager to increase the amount of temporary space that it offers.
Newme, a fast fashion brand with four locations, sees a sizable offline sales impact. The brand started its first store with a shorter leasing deal, according to Shivam Tripathi, co-founder of the startup, but it is now concentrating on long-term relationships. Tripathi observed that modern malls prioritise drawing in younger customers and favour direct-to-consumer (D2C) brands that appeal to them. Pradeep Krishnakumar, co-founder of the accessories company Zouk, added that D2C brands will be essential in attracting Gen Z and millennial consumers, who are willing to make purchases, to shopping centres.
