An increasing number of direct-to-consumer (D2C) firms are embracing malls to improve their customer interaction and offer immersive shopping experiences as India’s retail landscape rapidly changes. According to industry participants, malls are the best place for brands to establish a physical presence, cultivate relationships, and increase revenue.
“D2C brands are increasingly choosing malls because they offer an engaging and curated environment that allows for better customer interaction and brand recall,” stated Nirzar Jain, chief leasing officer of Nexus Select Malls. “As the cost of acquiring customers online increases, offline initiatives become essential to maintaining growth once firms reach a certain threshold.”
“Malls allow D2C brands to engage customers beyond transactions, turning retail into an immersive journey,” said Aman Trehan, executive director of Trehan Iris, echoing this sentiment. “Companies are creating shopping locations with events, interactive displays, and customised experiences.”
Larger cities are not the only ones making the shift to physical retail. The demand for malls in growing markets is being further increased by the fact that tier-2 cities are turning becoming hotspots for both residential and commercial expansion, according to Aman Sharma, managing director of Aarize Group.
According to industry experts, 55 million square feet of Grade-A mall space would be needed by 2027, which is in line with the trend. The trend towards experiential retail, where customers are looking for experiences rather than just items, is what is driving this increase.
As online and offline tactics become more integrated, D2C firms are discovering that malls offer the right setting to increase customer base size and foster loyalty, setting them up for long-term success, the experts said.