"Transforming retail: solutions for modern-age shopping experience" session was held in Intimasia 2025, held earlier last week in New Delhi (India).
How do brands perceive multi-brand outlets (MBOs) as a distribution channel? What strategies can they implement to drive profitability in this space? What are your thoughts on this as brand leaders?
In this business, the Pareto principle is remarkably evident. Take Jockey, for example—it's a brand I know well. Jockey operates in approximately 100,000 outlets, but just 5,733 of them account for 56% of its total general trade business.
This highlights the significant impact of a well-established multi-brand outlet network. I like to refer to it as a “cloud” because these stores hold substantial influence over manufacturers and brands alike.
Looking at success stories, it’s worth discussing outlets like Savvy and Balaji XLU. Their store experience and décor truly stand out. I recall visiting Deepakji once and suggesting we install our brand's fixture in his store.
He outright refused, explaining that his store’s décor was a key factor in attracting customers. His stance was clear—any brand that wanted space in his store had to blend seamlessly with its established aesthetic. That level of curation makes all the difference.
Now, considering tier-two and tier-three cities, we're seeing a rise in specialty chain stores—especially in categories like lingerie—where significant investments are being made in store design. This evolution in retail is shaping consumer preferences and expectations.
The Disruption of Fast Fashion
When discussing the future of this industry, one cannot ignore the disruptive forces at play. Take Zodio, for example—an MBO or EBO (Exclusive Brand Outlet), depending on how you classify it. It entered the market swiftly, much like how Big Bazaar once dominated the fast fashion segment by offering affordable styles.
However, fast fashion isn’t just about speed—it’s also about price, and lower prices often mean tighter margins.
Now, with Zodio shaking up the industry, the question arises—who’s next? We’ve already seen a major Indian conglomerate partnering with Shein, a brand known for offering fast fashion at exceptionally low prices.
Shein’s scale is staggering, introducing an unprecedented 130,000 new designs per year—something unimaginable for most Indian fashion houses. This rapid turnover challenges manufacturers to optimize efficiency, product knowledge, and pricing strategies to maintain profitability. The Indian market, while evolving, still has a long way to go in achieving the level of operational efficiency required to compete at this scale.
The Evolution of MBOs and Consumer Expectations
Retail, especially within the MBO segment, has undergone a major shift. Traditional small-scale stores—many of which lacked fitting rooms and other conveniences—are gradually giving way to modern MBOs that prioritize customer experience. Stores like Balaji exemplify this transition, offering a curated shopping environment that caters to the evolving demands of today’s consumers.
As customers become more discerning, we’re seeing a shift away from smaller, commodity-driven stores toward experiential retail. This is particularly evident in specialized categories like lingerie, where loyalty was once driven by habit but is now being influenced by a plethora of available choices. Consumers are more open to experimentation, aided by technological advancements like virtual try-ons.
Ultimately, MBOs that provide a differentiated shopping experience will thrive. Consumers want options, the ability to compare products, and an immersive retail environment.
As long as MBOs continue to evolve and cater to these expectations, they will remain a crucial part of the retail landscape, particularly in categories where purchase decisions are highly involved and extend beyond mere necessity.