admin
February 18, 2026
Kartikay Kashyap, BrandWagon, Financial Express
18 February 2026
IKEA HAS BEEN around in India for about eight years, with another three years before that spent studying the market. It has developed a range that it deems “locally relevant-like the roti maker, the tava (pan), the belan (rolling pin), and the pressure cooker -which now constitute about 50% of the products it offers in the country. It has shifted its communication strategy to sync with local culture and fit into local spaces and has worked hard to beef up its omnichannel sales model with about 30% of its sales originating online. But profitability has remained elusive for the retailer whose global sales reached approximately €45billion in the 2015 financial year (FY25).
Just for context, the company’s India entity widened its losses by about 29 to 1,325.2 crore in the financial year ending March 31, 2025 (FY25). The revenue also dipped 3 to 1,749.5 crore from 1,809.8 crore in FY25.
So now the brand is taking a leaf out of its China playbook and tweaking its retail formats. Starting last year, it started piloting smaller store sizes ranging from 15,000-20,000 sq ft that are more cost-effective to set up and faster to integrate with its omnichannel model. “The goal is to create a simpler and more efficient shopping experience,” Ingka Group Retail Manager Tolga Oncu had said when the concept was unveiled last August.
Five months on, the furniture retailer is looking to take a step up the ladder – setting up new stores in the 50,000-70,000 sq ft range in the country, which will sit comfortably between its smaller stones (15,000-20,000 sq ft) and big box retail outlets (4 lakh sq ft), Adosh Sharma, country commercial manager at Ikea India told FE recently. Ikea’s broader plan also includes doubling its investments in the country to over 20,000 crore ($2.2 billion) over the next five years and improving local sourcing.
Will all this help the retailer grab a larger share of the highly fragmented furniture and furnishing market in the country? Will the brand achieve profitability in the next two years in keeping with its plans?
Ikea realises copy-pasting its global retail strategy in India is not going to work. That explains its recent moves to tweak store sizes and product design. Over and above the regular 5-M-L strategy, the fourth format the brand is developing comprises no-frills planning and order points, focused on customers who want to design homes or seek complex solutions without distraction.
“Smaller stores, which fulfill purpose-led needs will help them to get closer to their customers,” says Devangshu Dutta, founder & CEO, Third Eyesight.
The furniture and home decor segment has been up against slow purchase cycles in India. Smaller sized stores that are closer to residential arras might help step up the frequency of purchases. “Players are moving towards a higher purchase frequency strategy and smaller stores will help lkea cash in on this opportunity,” says Kushal Bhatnagar, associate partner, Redseer Consultant Strategy. He says quick commerce has helped improve the purchase cycle in the home decor space, and that is something Ikea will likely tap going forwand.
Dutta says Ikea has taken a long-term view on India and the investments in the pipeline is an indication of the opportunity that awaits players.
The brand claims it has served close to 110 million customers in FY25 across channels, and online sales are growing 34% compared to the previous fiscal. While furniture contributed the lion’s share of its revenue, the food business contributed 100% and Ikea for Business (tailored solutions for businesses) another 19% to its topline.
(Published in Financial Express)
admin
February 14, 2026
This episode of theUpStreamlife is a freewheeling conversation between Vishal Krishna and Devangshu Dutta, founder of Third Eyesight, with insights into the growth of modern retail and consumption in India, brand building and M&A, the balance of power between brands and retailers/platforms, sustainability vs growth and many other aspects, and is well-suited for founders and teams who want to be building for the long run in India.
admin
February 11, 2026
Vaeshnavi Kasthuril, Mint
Bengaluru, 11 February 2026
Sales of winter wear were underwhelming for the second year in a row as an unusually delayed and milder winter disrupted demand for heavy winter wear, particularly in north and west India, executives at two of India’s top clothing retailers said. Initial optimism for a bumper season this year compounded the disappointment for retailers.
While early signs of a La Niña—a weather pattern typically known for bringing freezing temperatures to India—triggered some early buying in the previous quarter, the season remained unusually mild, leaving stores with a surplus of winter clothing. Excess rainfall and cyclonic activity during the festive period in parts of eastern and southern India further weighed on seasonal buying, compounding the pressure on winter sales which are typically front-loaded.
This slump is particularly painful because winter sales are the industry’s largest annual driver. These months coincide with India’s massive wedding season, when spending peaks. Together, they account for roughly 20% of total yearly revenue for apparel companies, according to industry estimates. India’s apparel market was estimated to be worth more than ₹1.9 trillion in FY25, of which 41% was organised, credit ratings firm CareEdge said in January 2026.
V-Mart: margin over volume
Lalit Agarwal, managing director of V-Mart Retail, said, “Northern India saw a delayed or milder winter initially, leading to dispersed demand for heavy winter wear. Winter demand was definitely delayed a little bit—it didn’t get lost, but it was erratic.” He added that while festive demand held up, “demand visibility was uncertain, particularly in winter-led categories, and we consciously chose to protect margins rather than chase volumes.”
V-Mart’s revenue grew a little over 10% year-on-year to ₹1,126.4 crore in Q3 from ₹1,023.7 crore a year earlier and ₹889.05 crore in the third quarter of FY24, but this growth was largely driven by wedding and festive-season clothing, executives at the company said.
Anand Agarwal, chief financial officer of V-Mart Retail, said despite forecasts of a strong, early winter, “peak winters were delayed across North and West India, leading to a lull post-Diwali.” He added, “While the festive period went off reasonably well, winter demand did not pan out as anticipated,” attributing the softer sales to fewer peak winter days and unusually warmer temperatures.
Despite the delayed demand, the company managed to avoid a build-up of unsold inventory during the quarter. “Inventory health remained strong despite the delayed winter, and in some categories we were even short of inventory,” said Anand Agarwal, indicating that the eventual dip in temperatures led to a sudden pick-up in demand in select winter categories rather than excess stock.
Winter-led assortments continue to account for a sizeable share of the company’s quarterly sales, underscoring its sensitivity to weather patterns. “Winter and pre-winter categories accounted for about 40-45% of the overall mix during the quarter, and this share rose to over 60% during peak winter weeks in December,” said Agarwal during the third-quarter earnings call. The higher share of winter wear sales during peak weeks helped cushion margins, even as volumes remained below expectations. Lalit Agarwal said the company refrained from aggressive discounting amid uncertain demand. “Higher full-price sell-through during the winter quarter supported margins, as we did not undertake aggressive discounting,” he said.
Vishal Mega Mart: the late recovery
Gunender Kapur, managing director and chief executive officer of rival Vishal Mega Mart, said delayed winters usually force retailers to push promotions to ensure that they don’t carry forward all that merchandise, because the next opportunity to sell it would be the following year.
Despite this, the company’s performance held up, he said, highlighting that winter sales achieved robust double-digit same-store growth for the entire season and the full quarter, effectively overcoming the sluggish demand during December. Kapur noted that demand for winter clothing increased significantly in January, adding, “Winter merchandise is still selling well, both in our stores and in other stores, we believe.”
Vishal Mega Mart reported revenue growth of about 17% to ₹3,670.3 crore in Q3 FY26 from ₹3,135.9 crore in Q3 FY25 and ₹2,623.5 crore in Q3 FY24, largely on the back of wedding and festive-season demand.
Kapur said the company was unsure whether there would be significant unsold winter merchandise at the end of the season, adding that maintaining pricing discipline helped protect profit margins. “Merchandise that sells in December typically fetches a higher price than January merchandise for winter because sales often begin by late December or early January,” he said. “In our case, there was no problem. We achieved same-store sales growth of over 10%, even with the winter merchandise we purchased for the autumn-winter season.”
V2 Retail: the outlier
In contrast, V2 Retail recorded strong performance in the third quarter, largely driven by winter wear. Revenue surged nearly 60% year-on-year to ₹929.2 crore in Q3 from ₹590.9 crore a year earlier. This is perhaps because V-Mart and Vishal Mega Mart are more concentrated in north and central India, where winter demand was more uneven this season, while V2 has a stronger presence in eastern and north-eastern markets, including Bihar, Jharkhand, Odisha and Assam.
Managing director Akash Agarwal said the early onset of winter led to a “very good season” for the company. He noted that winter garments typically command a much higher average selling price (ASP) than summer products, which resulted in a visible bump in average bill value during the third quarter, led by higher sales of jackets and sweaters. Agarwal said this high-ASP, high-margin category accounted for the bulk of Q3 sales and was a key driver of the company’s same-store sales growth.
A worsening problem?
Two straight years of sluggish sales because of erratic winters highlight broader challenges around climate change for apparel retailers, which peg their inventory based on weather patterns and demand.
“Seasons have always been inherently unpredictable, and retailers have never been able to forecast with certainty how cold or warm a winter will be or how long it will last,” said Devangshu Dutta, founder of Third Eyesight, a consulting firm. However, he said that the challenge has intensified over the past 15-20 years as apparel businesses have scaled up and expanded their store footprints nationwide, stretching product development and supply chains over several months.
“No matter how hard you work on the plan, your forecast will always be wrong. You will either overshoot or undershoot,” Dutta said, adding that this leaves retailers grappling with either shortages or excess stock. Winterwear, he said, is particularly vulnerable because it has a higher value per unit, a much shorter selling window, and a smaller market, factors which together create a “humongous problem” for retailers.
Data from a World Meteorological Organisation report published on 16 January showed that 2025 was among the three warmest years on record worldwide, continuing a decade-long streak of exceptional heat despite the cooling La Niña phase. This is a clear sign that background warming from greenhouse gases is overwhelming natural variability, the report said. It suggested that climate change will intensify seasonal shifts and extreme weather in the years and decades ahead, making industries tied to seasonal patterns, such as winter apparel, increasingly vulnerable to unpredictable weather swings and weaker cold spells.
(Published in Mint)
admin
January 17, 2026
Prachi Srivastava, Hindustan Times
January 16, 2026
We keep telling ourselves that 2026 will be the year of budgeting. So, we’ve cut back on weekend brunch, paused Zara hauls, are collecting every coupon code we can, and are furiously spinning the wheel of luck on every site’s pop-up box. One thing that’s making it a little easier: Mini-sized luxury.
We’ve been here before. India’s sachet and sample-size products have been so successful, they’re studied in business school. We’ve lived through the beauty-box-subscription revolution (we still have the empty pouches somewhere). We’ve sprung for discovery kits on Nykaa and Tira (those 7ml doses will never make a difference, but still…). But luxury in small sizes? In this economy, when we’re budgeting and still craving pick-me-ups, it’s an idea whose time has come.
Everyone’s doing fun-size now: There’s one-day-use SPF as a handbag charm, tiny tubes of mascara, three-spritz niche perfumes. There are advent calendars – 30-day boxed sets for December, promising big savings. But also tasting jars of chilli-oil, one-hour-burn micro candles, single-wash detergent pods, even a single-cup insulated flask for your morning brew.
They all have starring roles in What’s in My Bag videos and GRWM reels. “Mini-product content sees higher engagement because it’s visually satisfying,” says beauty influencer Preiti Bhamra (@PreitiBhamra). “The contrast of a big hand holding a tiny product instantly catches attention.” Minis are deliberately packaged in the same style as a full-sized product, for better brand recognition. They photograph better too. Plus, think of how many more treats can fit on a shelf or a handbag, if they’re a smaller size.
Thinking small
Minis used to be linked to the Lipstick Index. The uptick in small-luxury purchases has, for decades been a recession indicator – ostensibly because when finances feel uncertain, consumers tend to avoid big purchases and turn to smaller indulgences for an emotional boost. That’s no longer true. Small is now a category unto itself.
On top beauty sites, you can filter products by mini size (not Travel Size as they were once called). Korean and Japanese brands deliberately market “ampoule” sizes for single-dose products. Platforms such as Smytten sell only sample sizes. Gemz, a mass-market brand that hasn’t launched in India yet, is aimed directly at GenZ (as the name suggests). It sells bath products in single-use packs. Hang them on the shower rod, open one, add water, lather, rinse, repeat.
Retail and luxury analyst Devangshu Dutta notes that minis are just low-risk experiments in luxury. It “encourages consumers to try premium categories they might otherwise postpone”. Think about it: A full-size Maison Francis Kurkdjian perfume may cost more than a month of Uber rides, but its mini discovery set under ₹5,000 feels like reasonable adulting. A Jo Malone candle is basically an EMI for your nose — but the 35g version? Suddenly doable.
“Across beauty, fragrance, personal care and gourmet foods, minis help brands acquire new customers faster,” Dutta adds. “They rotate better on shelves, get tried more often, and build quicker loyalty.”
I feel so used
We don’t buy minis only because they’re practical. We buy them because they hit our emotional pressure points. Clinical psychologist Dr Prerna Kohli says that when life feels overwhelming, “a small treat feels manageable.” A tiny lipstick becomes a quick hit of “at least this feels good,” even when nothing else is going right.
“There’s also a cultural twist,” Kohli adds. Indians grow up on the idea of delayed pleasure — work first, reward later. Tiny luxuries flip that script. They’re permission to feel good now. “Choosing something beautiful reminds you that you still matter, without waiting for a milestone.” Women, particularly working women and caregivers, hesitate to invest in themselves. But a tiny serum? That feels “allowed.” Less money, less guilt, and far fewer explanations.
Tiny treats thrive in the kitchen, as young professionals find them easier to experiment with, than brimming jars of an unfamiliar flavour. Food creator Natasha Gandhi (@NatashaaGandhi) says that tasting sets, mini variety packs and weekend-use portions have been doing well in the gourmet and artisanal category as diners seek restaurant-style flavours at home, but don’t want to cook the same thing over and over. In smaller kitchens and cluttered pantries, they also feel practical. They sit “at the sweet spot of ambition, convenience and low commitment.”
Too tiny to thrill
Not all minis deliver value. A 7ml sunscreen sachet isn’t enough for a user to determine if it truly suits their skin. A one-meal condiment delivers flavour, not familiarity. Single-use homecare creates packaging waste, adds to clutter, and cost-per-use can quietly climb. Luxury shampoo and conditioner minis are largely “overrated,” says Bhamra — often more indulgent illusion than practical trial.
The real red flag appears when the buying shifts from enjoyment to emotional avoidance. “It becomes unhealthy when shopping is used to numb uncomfortable emotions,” cautions Kohli. The usual symptoms apply: Shopping in secret, adding to cart the same time every day, week or month – indicating shopping during cyclical low periods, overjustification for a purchase. “Enjoyment is fine. Distraction always circles back.”
Perhaps in an age of overwhelm, the new luxury isn’t about owning more, but about feeling steadier. “Sometimes people simply enjoy beautiful things in small forms,” says Kohli. “We’re allowed to like something just because it makes us smile.”
admin
January 6, 2026
Saumyangi Yadav, Entrepreneur India
Jan 6, 2026
After years of rapid growth and a sharp reset, India’s direct-to-consumer (D2C) sector is expected to settle into a more balanced phase. The period of easy funding, aggressive customer acquisition and scale-at-all-costs expansion is clearly over, experts suggest. Now, what lies ahead in 2026 is a shift towards steadier growth driven by better execution, stronger retention and clearer brand positioning.
According to Bain and Flipkart, India’s e-retail market is projected to reach $170–190 billion in GMV by 2030, driven by a growing online shopper base and evolving commerce models. As adoption deepens across Tier-2 and Tier-3 cities, high-frequency categories such as grocery and lifestyle are expected to drive a larger share of growth, making repeat purchase and habit formation critical for D2C brands.
Against this backdrop, 2026 is shaping up as the year when D2C brands are judged less on ambition and more on outcomes.
A Post-Hype Phase of D2C
Industry observers say the D2C ecosystem has clearly moved beyond its hype-driven phase. Devangshu Dutta, Founder and Chief Executive of retail consultancy Third Eyesight, describes the current moment as one of structural correction rather than contraction.
“India’s D2C ecosystem is in a post-hype phase where growth may be slower but structurally healthier,” Dutta says, adding, “Earlier growth cycles prioritised visibility and sales at the expense of profitability and consistency. Now, success is being measured by repeat rates, contribution margins and the ability to fund growth internally.”
Tighter funding is also driving this shift. With D2C investments slowing and overall capital remaining cautious, brands are now being pushed to show predictability rather than promise. Tracxn data shows Indian D2C startups raised USD 757 million in 2024, significantly lower than previous years, while overall PE-VC investments in India remained flat at USD 33 billion in 2025, according to Venture Intelligence.
As a result, Dutta notes that many D2C companies are rationalising portfolios, tightening inventory cycles and optimising supply chains. Marketing strategies, too, are evolving, with greater emphasis on retention, community-building and owned channels instead of discount-led growth.
Uniqueness Will Define Winners
If capital discipline is one defining force, speed is another. Harish Bijoor, business and brand strategy expert, argues that D2C’s next phase will be shaped by how brands respond to a faster, more fragmented commerce environment.
“The e-commerce revolution led to a more refined orientation of D2C, and that has now given way to a q-commerce revolution that is even faster,” Bijoor says, adding, “The D2C revolution is going to be leveraged by speed. A whole host of players will invest time, energy and innovation into this.”
In Bijoor’s view, traditional e-commerce is now the slowest layer in a spectrum where quick commerce is the fastest, and D2C sits in between. In such a landscape, competing purely on price is no longer sustainable. He believes differentiation will increasingly come from uniqueness and premium positioning rather than ubiquity.
“When you know that you get a particular great-tasting biryani at just one place with no branches, you will go to that place. That uniqueness is what will distinguish D2C commerce in the future,” he says.
Bijoor adds that many D2C brands have been trapped in price wars under the guise of differentiation. He also argued that brands that premiumise and resist excessive omnichannel dilution are more likely to build desirability and long-term value.
Consumers Move Beyond Metros
Structural shifts in demand are reshaping how and where D2C brands grow. India now has one of the world’s largest and most diverse online consumer bases, with growth increasingly driven by Tier-2, Tier-3 and smaller towns rather than metros alone. Internet adoption continues to deepen across rural and semi-urban India, expanding the addressable market well beyond early digital buyers.
This widening base is changing the nature of growth. Consumers are becoming more deliberate in how they spend, weighing value, quality and trust more carefully than before.
As Devangshu Dutta notes, Indian consumers have always been discerning, but rising living costs and economic uncertainty have made them even more thoughtful, pushing brands to earn repeat demand rather than rely on impulse or discount-led purchases.
“Value is not just about discounts,” he says. “It’s a balance of price, performance and trust. For D2C brands, repeat consumption has to be earned through consistent quality, transparent pricing and dependable service.”
High-frequency categories such as grocery, lifestyle and general merchandise are expected to drive much of this expansion. Bain estimates these segments will account for two out of every three e-retail dollars by 2030, reinforcing the importance of habit formation and retention-led models.
Quick Commerce Expands Discovery, Not Profitability
Quick commerce has emerged as a powerful but complex growth lever for D2C brands. The format now accounts for a significant share of India’s e-grocery demand and has scaled into a multi-billion-dollar market, becoming a key discovery channel for food and everyday consumption brands.
However, expansion beyond metros remains challenging. RedSeer data shows non-metro markets contribute just over 20 per cent of quick commerce GMV, even as platforms scale to over 150 cities, with breakeven economics in smaller towns requiring significantly higher throughput.
Praveen Govindu, partner at Deloitte India, cautions that while quick commerce has helped many D2C brands gain discovery, particularly in food and beverage, it is not a sustainable growth engine on its own.
“From a customer acquisition standpoint, quick commerce is not fundamentally different from traditional e-commerce,” Govindu says, adding, “It is an expensive channel, and competition will only intensify. Over the long term, brands cannot rely on burning capital there.”
Omnichannel Enters Its Toughest Phase Yet
As digital acquisition costs rise, India’s ad market is projected to grow nearly 8 per cent in 2025 to Rs 1.37 lakh crore, with digital accounting for almost half of the spends, brands are being pushed to diversify distribution. Yet omnichannel presence alone is no longer enough.
“Many brands talk about omnichannel, personalisation and seamless journeys, but in practice these efforts are still disjointed. In 2026, the focus will shift from intent to execution,” Govindu says.
RedSeer projects India’s retail market to cross USD 2 trillion by 2030, with nearly 90 per cent of consumption still happening offline. For D2C brands, this makes offline expansion unavoidable, but success will depend on consistent execution across pricing, inventory, service and communication.
Consumers, Govindu notes, do not consciously differentiate between online, offline or social platforms. “They simply want a consistent experience,” he says. “Even small inconsistencies can erode trust.”
AI-Led Discovery and Experience
Perhaps the most transformative force shaping 2026 will be the evolution of buying journeys themselves. Govindu sees the rise of AI-led and agentic commerce as a major inflection point.
“Conversational platforms and AI-driven assistants will increasingly influence discovery, purchase, fulfilment and post-sales experiences. What earlier happened across multiple touchpoints is now beginning to happen in one place,” he says.
This convergence amplifies the importance of content-led discovery, owned data and deep consumer understanding. Brands that can unify storytelling, commerce and service into a coherent narrative are more likely to build loyalty in an environment where switching costs are low and alternatives are abundant.
Whether growth comes through D2C websites, marketplaces, quick commerce or offline stores, experts agree that the real differentiator will be a brand’s ability to build durable consumer relationships. As investors shift focus from short-term metrics to long-term value creation like retention, margins and brand strength, the next phase of India’s D2C story is less about rapid expansion and more about refinement.
(Published in Entrepreneur India)
Saumyangi is a Senior Correspondent at Entrepreneur India with over three years of experience in journalism. She has reported on education, social, and civic issues, and currently covers the D2C and consumer brand space.
