D2C Brands Expanding Offline Presence, Leases 6 Lakh Sq Ft Space in H1 2025: CBRE

Direct-to-consumer brands took on rent 5.95 lakh sq ft retail spaces in malls and high-street during the January-June period of 2025, contributing 18% to the total leasing activities, according to CBRE.

The direct-to-consumer (D2C) model is a retail strategy where a company produces its products and sells them to customers directly through its own channels, like website, physical outlets, online marketplaces, and social media platforms, real estate consultant CBRE explained.

In its latest report 'India's D2C Revolution: The New Retail Order', CBRE highlighted "India's D2C brands are increasing their offline presence to enhance their connect with the consumers".

As compared to 8% in January-June 2024, the share of retail space leasing by these new-age brands has gone up to 18% in the first half of 2025.

These brands are expanding into physical retail through a mix of formats, from pop-up shops and showrooms to traditional brick-and-mortar stores.

In the first six months of 2025, the D2C brands have leased 5,94,848 sq ft of retail spaces.

Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East and & Africa at CBRE, noted that offline expansion of D2C brands may be called as their 'mainstreaming'.

"While online shopping continues to grow, physical purchases still account for a majority of transactions, making omnichannel growth important. Unlike a standardised online experience, a physical store allows brands to create a tailored shopping environment that helps them connect deeply with their target audience and reinforce their ethos," Magazine said.

The fashion & apparel sector dominated the leasing by D2C brands in the January-June period of 2025, with a share of 60%. This was followed by homeware and furnishings (12%), jewellery (12%), and health and personal care (6%).