Scaling is a fundamental aspect of retail, allowing businesses to unlock economies of scale, create barriers for competitors, and cater to a wider or deeper range of market segments. However, it comes with its own set of challenges, from navigating cultural and regional diversity to managing high capital investments and staying ahead in an ever-evolving market.
With constant disruptions from technology and changing consumer preferences, especially in fashion, it’s crucial to stay innovative and adaptive. The session ‘Scaling Fashion & Lifestyle Business Profitably’ at the India Fashion Forum 2025, explored these challenges, share experiences, and discuss key strategies to build and scale a successful fashion business. It also brought some of the successful leaders to share strategies to build scale, profitability and differentiation, while balancing short-term results with long-term investments in innovation, sustainability and customer experience.
The session was moderated by Ramanathan Hariharan, Former Director & Board Member, Landmark Group. The other speakers in the panel were:
- Kumar Nitesh, CEO, Ajio Business & Footwear Business, Reliance Retail
- Kavindra Mishra, MD & CEO, Shoppers Stop Ltd.
- Rakesh Tiruveedhula, Director, RS Brothers & RS Jewellers
Embracing Innovation to Stay Ahead
Ramanathan Hariharan kicked off the session by highlighting the crucial role of integrating technology and online retail in the future. Highlighting Shoppers Stop, he probed the brand on how they have adapted to the evolving market landscape while embracing innovation to stay ahead.
“At Shoppers Stop, we’ve always focused on experience as the core of our business. Since opening our first store in Andheri on October 28, 1991, we’ve evolved significantly. Today, with 112 stores, formats like Homestop, Intune Fashion, and standalone beauty stores, including our management of all MAC and Elca Cosmetics stores in India, we’ve diversified to meet the changing needs of our customers. Through it all, our goal has remained clear: to provide a premium, omnichannel experience. From being one of the pioneers of online retail back in 2000, we’ve continuously embraced innovation to stay ahead of the curve. Whether it’s offering personalised shopping experiences or leveraging customer data through our First Citizen loyalty program, we’ve focused on delivering value. Our approach has always been customer-centric, and we are constantly adapting our offerings to meet their evolving preferences,” said Kavindra Mishra, MD & CEO, Shoppers Stop Ltd.
“We use technology to send reminders to customers when it’s time to replenish products they’ve purchased from us. As we look to the future, we recognise that the next generation, particularly Gen Z and Gen Alpha, will define consumption trends. Our store redesigns are a testament to this shift – focusing on experiential elements like gaming zones and lounges, which have increased productivity by 50% despite reducing store space. We’ve also embraced innovation through new ventures like Intune, which focuses on value while maintaining the same experience-driven philosophy. At the heart of all our efforts, technology plays a critical role, but it’s always about keeping the customer experience at the center of everything we do,” he added further.
Adding further, Kumar Nitesh, CEO, Ajio Business & Footwear Business, Reliance Retail explained, “As a large organisation with a wide range of categories under one roof, we face both significant challenges and ample opportunities. Some categories thrive while others lag behind—apparel might be up, but footwear could be down, or jewellery may not align with market trends. The key is to stay nimble, identify where we can leverage low-hanging fruits, and focus on high-margin areas to maintain profitability. Over the past year and a half, we’ve also ventured into private label businesses and shifted our distribution model. While our B2B online portal, which served over 1 million retailers, was cost-efficient, we recognised the need for a physical distribution approach to enhance bottom-line performance. By taking on the first-mile cost and passing on the last-mile cost, we’ve found a more effective balance. Additionally, we’ve expanded into franchise operations, further diversifying our approach to reach customers in new ways.”
“In this era of online shopping, we believe the physical retail experience still matters. Our Value Zone Hypermart has become a destination where customers not only shop but also enjoy the experience—ample parking, a pleasant ambience, and a place where the whole family can spend time. It’s the experience that adds value to their shopping journey, and that’s what we focus on; creating an environment that makes customers feel good about where they are shopping,” said Rakesh Tiruveedhula, Director, RS Brothers & RS Jewellers, which operates under five brands RS Brothers, South India Shopping Mall, Value Zone Hypermart, Narayani Silks, and Deroyal.
Balancing Investments in Store, Technology, and Profitability
When asked how do brands balance investments in the store and technology while maintaining profitability and ensuring a strong return on equity and capital, Mishra explained, “As CEOs, one of the most critical decisions we face is how to allocate our capital effectively. For us, we have Shoppers Stop, where we focus on building profitability, but we also have two growth engines—Intune, which we’re expanding aggressively, and our beauty business, where we’re continuously pushing the envelope with new brands. To evaluate these investments, we rely on a few key performance indicators, such as Return on Capital Employed (ROCE) over the next five years and Extended Internal Rate of Return (XIRR). Each business has its own lifecycle, but fundamentally, we assess what ROCE we expect from each business over the next five to seven years to ensure sustainable growth.”
“In India, pricing is crucial. Whether you’re in the luxury or mass market, getting the pricing right is key to success. If the price isn’t aligned with market expectations, and the quality doesn’t match, the product won’t sell, leading to excess stock and unhappy partners. As an organisation, we believe in fair and accurate pricing to ensure relevance in the market,” said Kumar Nitesh.
“Retail is a fine balance—like surgery—every move you make in one area affects another. For example, if footfall increases but Average Transaction Value (ATV) or conversion rate drops, you’re in trouble. It’s about managing the right KPIs, having a seamless supply chain, and ensuring your product is aligned with what the consumer needs. Retail isn’t rocket science; it’s about keeping it simple and focusing on what works for your specific market,” he added further.
“Everything grows only when profitability grows. Both the top line and bottom line need to increase together, and managing both is tricky, but essential for sustained growth. Without this balance, we lose the enthusiasm to keep moving forward. It’s also crucial for the team to feel secure in the brand’s growth, knowing that they’re growing alongside it. This sense of security and shared success is key to maintaining high morale and continuing the journey of growth,” concluded Tiruveedhula.
