As fashion brands expand, embrace digital transformation, and invest in talent, optimising capital expenditures (CapEx) and operational expenses (OpEx) becomes critical for sustainable growth. The panel discussion on Optimising CapEx and OpEx for Sustainable Growth in Fashion at India Fashion Forum (IFF 2025) brings together industry leaders to share strategies for resource allocation, cost management, and profitability enhancement.
Key topics discussed insights focused on maximising ROI, mitigating risks, and building long-term value through strategic retail expansion, talent development, and technology-driven efficiencies that enhance operations and decision-making.
The session was moderated by Ayushi Gudwani, Founder & CEO, FS Life. The experts in the panel were:
- Sumit Chandna, President & Dy. CEO, Max Fashion – Landmark Group
- Deepak Chhabra, MD, Timex India
- Kumar Nitesh, CEO of Ajio Business & Footwear Business at Reliance Retail
- Satyen Momaya, CEO of Celio Future Fashion
- Ankur Damani, Country Head – India & Sri Lanka, Triumph
Key Strategies for Optimising OPEX in Business Operations
Market valuation is ultimately driven by profitability and soaring EBITDA. To achieve sustainable growth, businesses must focus on optimising operational expenses (OPEX). When asked about the key levels: driving efficiency, cost management, and long-term profitability across different business models, experts shared valuable insights specific to their brands.
“Our business is fairly simple, with three major costs to manage— rent, energy, and manpower. Once locked in, rent and energy leave little room for optimisation, making manpower the key lever. The focus isn’t just on reducing costs but on driving productivity—having the right people, compensating them well, and ensuring efficiency. Beyond these, other costs are minimal in the P&L. Ultimately, success hinges on workforce productivity rather than just cost-cutting, making it the defining factor in long-term efficiency and profitability,” said Sumit Chandna, President & Dy. CEO, Max Fashion – Landmark Group.
Deepak Chhabra, MD, Timex India emphasised key factors in optimising OPEX. “First, efficient inventory rotation is crucial. Second, smart customer acquisition and marketing investments matter—if a store is in the right location, organic footfall reduces marketing needs. The focus should be on improving KPIs and increasing sales rather than just cutting costs. Retail operations also play a role—deciding between outsourcing, franchising, or in-house management impacts profitability. Lastly, expansion strategy is vital. Brands that saturate a city before expanding optimise marketing and operational costs better than those spread thin across multiple locations. Strategic planning ensures sustainable profitability despite revenue challenges,” he said.
Kumar Nitesh, CEO of Ajio Business & Footwear Business at Reliance Retail, highlighted that occupancy cost is the biggest expense in retail, often comprising 50% of total costs. “Managing it effectively starts with product creation, sourcing, and pricing strategy. Luxury brands can afford higher rentals due to higher margins, while mass-market brands operate on thinner margins. Manpower costs also depend on service models. Without a clear financial strategy, businesses risk losses. Success lies in understanding affordability from the outset and aligning costs with the brand’s positioning and profitability goals,” he said.
Satyen Momaya, CEO of Celio Future Fashion, emphasised that transforming profitability begins with a consumer-first approach. Prioritising consumer needs, refining assortments, and ensuring cost sensitivity across teams are key.
“Effective store selection minimises reliance on heavy discounting, while fostering agility helps brands respond swiftly to consumer demands. He believes that ‘what gets measured gets improved,’ advocating for a culture where cost awareness is ingrained, not enforced. This mindset enhances productivity across manpower, merchandise, and sell-through rates, driving long-term profitability through strategic decision-making and operational efficiency,” said Momaya.
Ankur Damani, Country Head – India & Sri Lanka, Triumph, highlighted that acquiring and retaining customers is crucial for success. Regardless of store location or cost optimisation, the key is ensuring consumers return. Efficiently allocating marketing budgets to build brand loyalty is essential, especially in a competitive market where consumers have endless choices. Beyond attracting new customers, brands must focus on repeat engagement—whether through stores, websites, or products—to create lasting connections and drive sustained growth.
Role of Product Cost Optimisation
Product cost optimisation plays a crucial role in maintaining profitability by balancing quality and affordability. By streamlining sourcing, production, and pricing strategies, businesses can enhance margins while delivering value to consumers.
“Optimising product cost starts with a clear understanding of the target consumer and reverse-engineering the product to meet their needs. Many brands either over-engineer or undervalue products, leading to inefficiencies at the store level. The decision of ‘make vs. buy’ should align with a brand’s value proposition and cost strategy,” said Chandna.
“Additionally, supply chain efficiency is crucial—faster replenishment can drive sales and enhance margins. Ultimately, cost should not be viewed in isolation but as a lever for productivity that fuels both top-line growth and bottom-line profitability,” he added further.
Ankur Damani of Triumph added another dimension to the debate. “At Triumph, we recognise early on that lingerie isn’t just about style—it’s about the perfect fit. A European or Southeast Asian product wouldn’t cater to the unique body types and preferences of Indian consumers. That’s why we set up our own manufacturing unit, giving us control over design, trends, and cost efficiency. This approach also provides flexibility—allowing us to scale production when demand rises or pivot when needed. Ultimately, the right fit isn’t just a product feature; it’s the foundation of consumer satisfaction and brand success,” explained Damani.
Discussing product optimisation, Kumar Nitesh emphasised its critical role, especially in a price-sensitive market like India. He stated, “Pricing is always top of mind for us as an organisation. Understanding the right pricing for the right market is key. Six months ago, we introduced the June-July concept in Tier 3-4 cities under ‘Fashion World,’ and the results were remarkable—an 86% sell-through in the autumn-winter season with an average selling price of just Rs 400. This highlights how crucial it is to align pricing strategies with market dynamics for success.”
Deepak Chhabra emphasised the importance of the value chain in profitability and OPEX. “Beyond the product, the right channel mix is crucial. How much are you spending to sell—are you more online, offline, DTC, or partner-based? While DTC offers direct consumer engagement, its value chain costs may be higher. Running your own stores also increases costs compared to a franchise model. Additionally, markdowns significantly impact profitability—if you can’t sell 90% at full price, any gains made earlier become meaningless, affecting the bottom line,” stated Chhabra.
Key Levers in Infrastructure and Capex Optimisation
Deepak Chhabra highlighted the importance of balancing fixed and variable costs, emphasising that outsourcing non-core functions enhances flexibility. “A lighter organisation with outsourced capabilities can quickly adapt to market shifts, avoiding heavy capex burdens. While owning manufacturing may offer control, leveraging third-party expertise often results in better pricing and lower variable costs. The key is defining whether you’re a brand, retailer, or manufacturer and aligning investments accordingly. The ability to scale up or down with minimal financial strain is crucial for long-term sustainability,” said Chhabra.
“Capex is a reality in retail, but smart investments like modular store furniture can optimise costs. Having worked in both outsourced and in-house manufacturing models, I’ve seen the pros and cons of each. While outsourcing offers flexibility, it also risks faster imitation. To counter this, securing factory capacity ensures exclusivity. The key is striking the right balance—leveraging outsourcing for efficiency while protecting innovation to maintain a competitive edge in the market,” said Nitesh.
“In a high-growth market like India, expansion can be tempting, but at Celio, we focus on consumer resonance. Using data-driven decisions, we build a retail blueprint, ensuring every store achieves four-wall profitability before scaling further. Strategic, step-by-step growth—rather than aggressive expansion—ensures long-term success and strong consumer connections, explained Momaya.
“As a retailer, optimising capex is key—every rupee must generate returns. While stores require careful spending to balance brand experience and functionality, warehousing is the heart of operations. Investing in efficiency here has a multiplier effect, directly impacting 500+ stores and enhancing customer experience. The trick is spending wisely—optimising store costs while ensuring warehouse investments drive productivity and long-term success,” highlighted Chandna.
Key Investments for Business Longevity
In ensuring long-term business longevity, the panelists unanimously emphasised the significance of technology, people, and consumer insights as key investment areas. Momaya highlighted the importance of investing in people and understanding consumers. Nitesh stressed that technology is vital to engage with the next generation. Chandna identified technology, people, and supply chain as critical pillars. Chhabra and Damani agreed on technology but emphasised its strategic use—leveraging data for consumer understanding and enhancing experiences. Damani also underscored optimised marketing investments to drive profitable growth.
