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October 24, 2025
Entrepreneur India
Oct 23, 2025
Indian consumers are increasingly opting for private labels and in-house brands over established ones, and retailers are taking note. According to EY’s ‘Future Consumer Index 2025’, more than half of India’s consumers are now choosing in-house brands over legacy labels.
The report highlights that 52 per cent of Indian consumers have switched to private labels for better value, while 70 per cent believe these in-house brands offer comparable or superior quality. Backed by this shift, retailers from BigBasket to DMart, and quick-commerce players like Zepto and Blinkit, are doubling down on their private label strategies, viewing them as a path to higher margins, stronger brand loyalty, and greater pricing control.
“Indian consumers’ growing preference for private labels reflects both short-term price pressures and a longer-term structural evolution in retail,” said Devangshu Dutta, CEO of Third Eyesight, speaking to Entrepreneur India.
Trending globally
The surge isn’t unique to India. A recent report by the Institute of Grocery Distribution (IGD) notes that globally, private labels now account for over 45 per cent of grocery volume and are expanding faster than legacy brands.
In India, this shift is becoming increasingly visible in-store. The EY report found that 74 per cent of consumers have noticed more private label options where they shop, and 70 per cent say these products are now displayed more prominently, often placed at eye level, signalling a strategic retail push.
Commenting on this trend, Angshuman Bhattacharya, Partner and National Leader, Consumer Products and Retail Sector, EY-Parthenon, said, “Consumer behaviour has traditionally evolved in response to changing economic situations, but the current shifts appear to be more permanent. Retailers are confidently launching private labels and allocating prime shelf space to them, while technology is enhancing the shopping experience by providing consumers with limitless options and the ability to compare products.”
From price-fighters to power brands
According to Dutta, private labels are no longer just “copycat” alternatives meant to undercut national brands.
“For retailers, not just in India but globally, lookalike private labels used to be tools at the opening price point to hook the customer, who saw them as credible, affordable alternatives to national brands,” he explained, adding, “However, as retailers have grown, they have gained both scale and expertise to widen and deepen their supply chains.”
Over time, he said, investments in formulation, packaging, and quality consistency have increased consumer trust.
“Private labels now compete on functional benefits rather than only on price, particularly in food staples and apparel, but also in brown goods and white goods, and increasingly in personal care and other FMCG categories,” he added. [Must read: “Private Label Maturity Model”]
Retailers scale up private labels
As demand for in-house brands grows, retailers are scaling up their strategies across sectors.
BigBasket, one of India’s largest online grocery platforms, reported that 35–40 per cent of its FY24 sales came from private labels like Fresho, BB Royal, and Tasties. The company aims to push this share closer to 45 per cent through expansion in frozen foods and ready-to-eat categories.
DMart’s private label arm, Align Retail, has reportedly more than doubled its sales in two years, touching INR 3,322 crore in FY25. The retailer’s in-house brands in staples, apparel, and home essentials have helped boost margins in a highly competitive retail landscape.
Zepto, the quick-commerce player, is taking private labels into the 10-minute delivery domain. Its brand Relish, focused on meats and eggs, has achieved INR 40 crore in monthly sales.
Meanwhile, Reliance Retail has also expanded its portfolio of private labels, including Good Life, Enzo, and Puric, across groceries, personal care, and household products, strengthening its broader FMCG play. In 2024, Reliance Retail’s Tira Beauty also announced the launch of its latest private label brand, Nails Our Way, signifying a major expansion in its beauty offerings.
Capturing a lion’s share in retail
Dutta noted that in India, private labels will remain a core pillar of modern retail strategy rather than a cyclical response to cost pressures.
“Consumers increasingly view retailers as brand owners rather than intermediaries. As private labels mature in branding and innovation, their growth aligns more and more with brand equity development rather than just opportunistic cost-saving,” he said.
From a retailer’s perspective, private labels deliver higher gross margins and greater strategic control, Dutta said. [Must read: “Private Label Maturity Model”]
Another report by the Private Label Manufacturers Association (PLMA), using Circana data, found that in 2024, private-label sales in food and non-edible categories grew faster than bigger brands globally. While figures vary by region and quarter, the pattern remains consistent: private labels are outpacing traditional FMCG growth.
Collectively, these shifts show that private labels are becoming a major revenue driver for retailers in India, and are fast evolving from value alternatives into brands with genuine consumer pull.
(Published in Entrepreneur India)
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September 24, 2025
Shabori Das & Sagar Malviya, Economic Times
Bengaluru/Mumbai, 24 September 2025
Chinese fast-fashion platform Shein plans to triple the number of launches in India and shrink its design-to-launch timeline by a third to deepen its push into an increasingly competitive market, a top official said.
The company, which re-entered India through a partnership with Reliance Retail in February this year, said it is overhauling its supply chain to enable faster turnaround times. To achieve this, it has moved away from large-scale manufacturing hubs to smaller production lines with each line focused on creating a single new design daily.
“Our current timelines, measured from ‘thought to site’, stand at 46 days. We are targeting 30 days,” said Vineeth Nair, chief executive of Reliance’s fashion platform Ajio that steers Shein in India. “We currently deliver 320 styles a day – about 10,000 a month – and plan to scale that to over 30,000 styles monthly in the coming months,” he told ET.
Speaking about the speed of manufacturing, Nair said, “We quantify our options in terms of production lines, with each line optimised to deliver one design option per day, rather than factories. Some of our large production units have been repurposed into multiple lines.”
Shein first launched in India in 2018 with its own online shop. However, the app was banned by the Ministry of Electronics and Information Technology (MeitY) along with TikTok, WeChat and over 55 other Chinese apps.
One of the primary issues and controversies surrounding Shein’s India operations was the use of the consumer data by the Chinese apparel retailer.
Under the current partnership model, Reliance Retail is operating Shein under licensing agreement and ensures complete customer data ownership as per the company.
Unlike international markets, Shein India products are made in India.
“It’s still early days – just about three months since we introduced Shein to the India Gen Z,” Nair said. “And we are still in the process of adding multiple products, which we intend to do in the next few months.”
He said the brand is witnessing two million daily average users, dominated by 21-year-old women who account for 62% of the traffic.
Shein, the world’s biggest ecommerce-centred fashion retailer, however, may find it hard to replicate its global success in India, according to Devangshu Dutta, founder of retail consulting firm Third Eyesight.
“Shein’s edge internationally has been its speed of dropping its products, and the width of its product category. The India model is not the same. The India model of fashion is slower, and the product category width is not as large,” he noted. “Hence, the brand will in all probability end up competing with the already established market like Myntra, Zudio and the likes.”
(Published in Economic Times)
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July 28, 2025
By Meenakshi Verma Ambwani, Hindu Businessline
New Delhi, July 28, 2025
Nykaa said that Kay Beauty, co-founded with actor Katrina Kaif, has crossed the ₹240 crore mark in terms of Gross Merchandise Value.
Stars from the tinsel town are donning the entrepreneurial hat to venture into the beauty and fashion business space. Some have even succeeded in growing their brands sustainably, earning big bucks.
Take for instance Skincare brand Hyphen, co-founded by actor Kriti Sanon with Pep Brands, which recently touched the ₹400 crore-mark in Annual Recurring Revenues.
Tarun Sharma, CEO and co-founder, Hyphen told businessline: “The brand is witnessing healthy growth rate quarter-on-quarter. In the first year itself, it touched ₹100 crore ARR. We had aimed for ₹500 crore ARR in 3-4 years and, within two years, we are at ₹400crore ARR.” Pep Brands led by Sharma owns mCaffeine and Hyphen.
The model that works
Sharma believes an operator-led, celebrity anchored model works better. ”The operator can bring in the necessary financial and execution muscle. If a celeb partners with an operator that has deep expertise in the space, then there is huge potential for growth,” he added.
“Product launches, marketing and distribution are very data-driven at Pep Brands. It guides us on what to launch, when to launch, and how to launch products. That has helped Hyphen in achieving this kind of growth rate. It is by design that the majority of the business of Hyphen is D2C,” Sharma explained.
In May, Nykaa said that Kay Beauty, co-founded with actor Katrina Kaif, has crossed the ₹240 crore mark in terms of Gross Merchandise Value. On an earnings call for Q4FY25, Adwaita Nayar, Executive Director, Chief Executive Officer, Nykaa Fashion, said: “Kay Beauty is one of the fastest-growing brands on the platform. It’s hit about ₹240 crore of GMV. The innovations have been fantastic this year. So, it is quite a premium brand, and I think the consumers are accepting it even at that price point. It’s got great gross margins.”
Earlier this year, Reliance Retail Ventures announced that it has decided to acquire 51 per cent stake in Ed-a-Mamma , a kid and maternity wear brand founded by actor Alia Bhatt. According to some reports, Hrithik Roshan’s sportswear brand HRX is a ₹1,000 crore brand.
Among the recent entrants are Ranbir Kapoor, who has decided to foray in the apparel and accessories space with ARKS. Launched in February, the brand has also launched its first store in Mumbai, followed by a second store in New Delhi and another with Broadway in Hyderabad.
‘Shift in preferences’
Abhinav Verma, co-founder and CEO, ARKS, told businessline: “We are seeing a shift in consumer preferences towards made-in-India brands. We decided to leverage on the strong manufacturing capability that India has to build a brand that is both aspirational and offers value. We are looking to build a ₹100 crore brand in the next 3-4 years with a strong omni-channel strategy.”
“The success of some of these brands demonstrates that building on consumer relevance and with powerful time-bound execution, celebrity ventures can become significant players in a crowded market. With consumer demand for relatability and digital-first branding on the rise, this segment will definitely grow. However, only brands that offer genuine value to consumers, and not just star appeal, are likely to endure,” said Devangshu Dutta, CEO, Third Eyesight.
(Published in The Hindu-Businessline)
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June 1, 2025
Sharleen Dsouza, Business Standard
Mumbai, 1 June 2025
Reliance Consumer Products is in a sweet spot – and it intends to stay there. Launched barely three years ago, the company has already entered the list of India’s top 10 fast-moving consumer goods (FMCG) players by revenue in the 2024-25 financial year (FY25).
After making headlines by acquiring Campa Cola in 2022 — and taking the brand overseas in under two years — Reliance Consumer Products quickly expanded into food and non-food categories under the ‘Independence’ brand. Now, it has trained its sights on a new frontier: Confectionery.
This marks the company’s third major focus area after gaining traction in beverages and staples. Though present in biscuits and namkeens, its immediate priority is grabbing a share of the Indian consumer’s pocket change — via candies, chocolates, and toffees.
Its entry into the confectionery business began quietly in 2022 with a pilot of Joyland candies in Uttar Pradesh. It soon went on an acquisition spree — first picking up the 30-year-old Maharashtra-based Toffeeman brand in 2023, followed by a 51 per cent stake in Lotus Chocolates, and then acquiring the 82-
year-old Ravalgaon, home to nostalgic brands like Pan Pasand, Mango Mood, and Laco. It has been steadily building a formidable candy arsenal.
However, the Mukesh Ambani-led company isn’t limiting itself to Re 1 or Rs 2 price points. According to a source, it is developing an end-to-end confectionery portfolio — across toffees, candies, and chocolate-based products — and plans to enter sub-segments like gums, jellies, and lollipops. It is also betting on old-school favourites, launching chocolate-based confections such as eclairs, Lotus Symphony (toffee with a chocolate centre), and Lotus Zellers (moulded chocolate miniatures).
It is piloting distribution in five states — Maharashtra, Karnataka, Telangana, Andhra Pradesh, and Uttar Pradesh — with plans to go pan-India this fiscal and reach one million outlets, the source added.
Why the big bet? The Indian confectionery market is expected to grow from Rs. 37,900 crore in 2024 to~59,700 crore by 2033, at a compound annual growth rate of 5.2 per cent, according to global consultancy IMARC Group. North India leads the market with a 32.8 per cent share. IMARC adds that modern retail formats, better digital connectivity, and product innovation are driving market penetration in both urban and semi-urban areas.
India’s sweet tooth has deep roots. Parle began selling candies in the 1920s, followed by Ravalgaon —now part of Reliance Consumer Products’ growing portfolio – in the 1940s.
Experts say the company’s strategy from the start was clear: Dominate. And it has the war chest to play the long game.
“Over two decades, Reliance has gained consumer-side experience and enormous momentum through various retail formats, and has figured out vertical integration in procurement,” said Devangshu Dutta, chief executive officer of consultancy Third Eyesight.
“Its experience in staples comes from private labels, and starting with Campa, its acquisitions in food, beverage and FMCG have grown. As a group, it has the muscle and a long-term approach to make a mark in the market.”
Dhanraj Bhagat, partner at Grant Thornton India LLP, pointed out thatthe FMCG market is notoriously tough — especially when scaling regional brands nationally. “But Reliance has deep pockets for brand building,” he said. That’s what sets it apart — it can spend big and be patient, he added.
While the company is making a dent via its distribution penetration strategy, it also needs to spend on publicity, Bhagat added. “Reliance has the money, so it is a different ball game for it as this gives the company the ability to spend and play the long-term game.”
Reliance Consumer Products is also offering higher margins to distributors in categories like Campa and confectionery, giving it a competitive edge. Its aggressive incentives have forced rivals to raise their own distributor margins — a sign of how this sweet battle is heating up.
(Published in Business Standard)
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May 23, 2025
By Kunal Purohit and Ananya Bhattacharya, Rest of World
Mumbai, India, 23 May 2025
Online retail continues to elude India’s richest man.
The Shein India app, launched by Mukesh Ambani’s Reliance Retail in partnership with the Chinese fast-fashion giant, has struggled to gain traction in a market where Amazon and Walmart have been fighting neck-to-neck for nearly a decade. Downloads for Shein India nosedived from 50,000 a day shortly after its launch in early February to 3,311 in early April, according to AppMagic, a U.S.-based app performance tracker.
In April, when U.S. tariffs hit China, the app saw renewed interest as it was in the news, but experts are unclear on whether this growth is sustainable.
“Unlike earlier times, now … [the] market is saturated with multiple options and offers, and user interest can quickly dwindle,” Yugal Joshi, partner at global research firm Everest Group, told Rest of World.
Kushal Bhatnagar of Indian consulting firm Redseer, however, sees the late-April spike as a healthy sign, given that Reliance has yet to run paid marketing campaigns for Shein.
Reliance Retail declined to respond to Rest of World’s queries about its partnership with Shein.
Reliance launched Shein for India five years after the original Shein app was banned in the country over border tensions with China. But the Shein that has returned is entirely separate from Shein’s global platform: Rather than selling made-in-China clothes and accessories directly to consumers, Shein now operates as a technology partner, while Reliance Retail handles the heavy lifting — from sourcing and manufacturing to distribution. All consumer data is managed by the Indian company.
The partnership is part of Ambani’s broader effort to overhaul his retail business, whose valuation fell to $50 billion in 2025 from $125 billion in 2022. Although the company has made a push into digital platforms like JioMart, Ajio, and most recently Shein India, the bulk of its retail revenue still comes from its 18,000 physical stores.
Lagging behind Amazon and Walmart-backed Flipkart, which together control nearly 60% of India’s e-commerce market, Reliance has spent years trying to break into the sector. Between 2020 and 2025, Ambani’s group acquired majority stakes in companies spanning digital services, online pharmaceuticals, and quick commerce. But the investments have yet to position Reliance as a serious challenger to Amazon and Flipkart.
Analysts say the Indian behemoth hopes to leverage Shein’s artificial intelligence-powered trendspotting and automated inventory systems to pursue an ambitious goal: capturing a major share of India’s e-commerce market, projected to hit $345 billion by 2030.
According to Kaustav Sengupta, director of insights at VisionNxt, an Indian government-funded initiative that uses AI to forecast fashion trends, such a model is likely to make good use of Reliance’s humongous customer data sets: more than 476 million subscribers for its Jio telecom brand, 300 million users for e-commerce platform JioMart, and 452 million subscribers for its news and entertainment portfolio, consisting of 63 channels, a streaming service, and digital news outlets.
“With these data points, Reliance wants to now sell fashion products, so all it needs is a system where it can feed all these data points,” Sengupta told Rest of World. He said the model would be able to predict best-selling products and suggest the right prices for them.
The original Shein app uses AI-driven models for intelligent warehousing and to spot customer trends before manufacturing a new product. It scales the manufacturing up or tweaks the designs based on the feedback. At any given time, the Shein website has a catalogue of more than 600,000 items. Its Indian iteration does not match up, according to reviews on the Google Play store. Several customer reviews for Reliance’s Shein app are critical of higher prices and reduced options. The app’s rating hovered at 2 out of 5 until February; in May, it climbed to 4.4, but reviews were still a mixed bag.
Reviews of the Indian app highlight the disparity with Shein’s global version, criticizing higher prices and a reduced selection of categories and styles.
As of April 25, Reliance Retail said only 12,000 products were live on Shein India, a stark contrast to the 600,000 items available on Shein’s global platforms. While Shein is reportedly set to debut on the London Stock Exchange this year, Ambani’s years-old promise to take Reliance Retail public remains unfulfilled.
Reliance Retail, which accounts for around 30% of the conglomerate’s overall business, is facing a slowdown in annual growth. Its sales rose just 7.9% in the fiscal year ending March 2025, down from 17.8% the previous year. Meanwhile, shares of rival Tata Group’s retail and fashion arm, Trent, have soared by 133%.
“Reliance would have looked at reviving that momentum and riding on it, while for Shein, adding India back on its portfolio of markets could be a plus point before its proposed public listing,” Devangshu Dutta, founder of Third Eyesight, a brand management consultancy that has worked with various global e-commerce brands including Ikea, told Rest of World.
A Reliance Retail official privy to information about its fast fashion expansion plans told Rest of World the partnership with Shein also hinges on global manufacturing ambitions as the Chinese company is trying to “source its products from other countries like India” to meet the “additional demand that is coming from newer markets.” Reliance Retail has tapped a network of small and midsize Indian manufacturers to locally source products, and its subsidiary Nextgen Fast Fashion Limited is leading the charge. “We need to first scale up our domestic manufacturing, before our partnership starts manufacturing for global markets. Let us see how that goes, first,” the official said, requesting anonymity as he is not authorized to share this information publicly.
India’s Gen Z population is at 377 million and counting, and their spending power is set to surpass $2 trillion by 2035, according to a 2024 report by Boston Consulting Group. Every fast-fashion retailer wants to capture this market, but it “is very new even for Reliance,” Rimjim Deka, founder of Indian fast-fashion platform Littlebox, told Rest of World.
Deka said smaller brands like hers “just see [a trend] and implement it,” which could take a large conglomerate months to do, by which time the trend may have lost relevance.
Reliance’s previous attempts to attract young shoppers with clothing brands like Foundry and Yousta failed to find much success. Anandita Bhuyan, who works in trend forecasting and product creation for fast-fashion clients like H&M and Myntra, told Rest of World the company has struggled to effectively leverage consumer data and target India’s youth.
According to the Reliance Retail official, the company is confident that if “there are 10 existing brands, the 11th brand will also get picked up as long as there is value and there is fashion.”
“Shein already has a recall among the youth. It gives us yet another brand in our portfolio through which we can cater to the youth,” the official said.
Shein was built in China on the back of more than 5,400 micro manufacturers — a scattered and loosely organized network of small and midsize factories.
In January this year, on a visit to China, Deka met with manufacturers working for Shein and Temu. On the outskirts of Guangzhou, Deka saw factories set up in areas that appeared residential, with “women sitting inside houses” making clothes.
“The tech is built in a way that somebody sitting there is able to see that, okay, next 15 days or next one month, how much I should be making … that is the kind of integration they have done,” Deka said.
Deka told Rest of World this model is easier to replicate at a smaller scale. “Me, coming from [the] supply chain industry, I understand that it is much easier for a brand like us because we are at a very smaller scale. We can still go to those people, we can still build it in a very unorganized way and then pull it off,” she said. Her company’s annual net revenue is 750 million Indian rupees ($8.6 million).
“[But] somebody like Reliance, they just cannot go haphazard here. … It has to be always organized,” Deka said.
Shein moved its headquarters to Singapore sometime between late 2021 and early 2022, a strategic departure to distance itself from its Chinese origins and facilitate hassle-free international expansion amid the U.S.-China trade war.
India is part of Shein’s wider strategy to diversify its supply chain — one that also includes a newly leased warehouse near Ho Chi Minh City in Vietnam, and efforts to establish alternative manufacturing hubs in Brazil and Turkey.
But in India, Reliance needs Shein as much as Shein needs Reliance for its global pivot. According to Bloomberg, Reliance Retail is focusing on creating leaner operations to weather a wider consumption slump in the Indian economy.
“It remains to be seen whether the Reliance-Shein combine can deliver on the brand’s promise with a wide range of products, fast and on-trend,” Dutta said. “In the years that Shein has been absent, the Indian market has evolved further, competition has intensified, and past goodwill is not enough to provide sales momentum.”
Kunal Purohit is a freelance journalist based in Mumbai, India.
Ananya Bhattacharya is a reporter for Rest of World covering South Asia’s tech scene. She is based in Mumbai, India.
(Published in Rest of World)
