D2C Brands Take Over Indian Retail

Direct-to-consumer (D2C) brands have demonstrably solidified their presence within India's physical retail landscape during the first six months of 2026. These brands accounted for roughly 28% of the nation's total retail leasing, a notable increase from the 23% observed a year prior. This surge is part of a broader trend where overall retail leasing activity in India experienced a 20% year-on-year growth, reaching approximately 3.9 million square feet in the first half of 2026.

Fashion and apparel segments overwhelmingly led D2C leasing, comprising 69% of the total. Homeware and furnishings followed with 12%, and jewelry with 7%. This expansion is characterized by a more strategic approach, with D2C companies now emphasizing store-level profitability and efficient omnichannel integration over rapid store openings. This measured expansion reflects a maturing Indian retail market, with retailers making more deliberate choices about their growth strategies, fostering a more resilient sector.

Innovative store formats are also emerging, including micro-stores and shop-in-shop arrangements. These formats allow D2C brands to expand their offline reach with reduced execution risks, balancing new market penetration with long-term business viability. Delhi-NCR led retail leasing with a 35% share, followed by Chennai at 17% and Mumbai at 15% during this period.