New Delhi: Fashion and lifestyle retailer Lifestyle India is banking on tier 2 expansion, a faster-growing digital channel, and deeper domestic sourcing to sustain strong double-digit growth in the coming years, said Devarajan Iyer, executive director and CEO of the company.
“The year started off very well for us. We have posted strong like-for-like growth, with both our digital and women’s businesses growing in double digits,” Iyer told ETRetail in an interaction.
Tier 2 towns and omnichannel acceleration to drive growth
While metro markets account for nearly 60 per cent of Lifestyle’s revenue, Iyer said the biggest growth opportunity lies in tier 1 and tier 2 towns.“Retail space in metros is saturated. The real opportunity is in 10-20 lakh population cities like Lucknow, Kanpur, and Trichy. These markets are showing higher traction in brick-and-mortar than digital, as customers are eager to experience brands physically,” he said.
The company plans to open 10-14 new stores this fiscal, largely in these growing urban centers. With limited availability and high rentals in major metros, Lifestyle is also exploring high-street formats in addition to malls.
Currently, about 93-94 per cent of Lifestyle’s sales come from offline stores, with digital contributing around 6 per cent.
“Our target is to take online contribution to 10 per cent over the next two years. The channel will continue to grow 20-25 per cent annually,” Iyer said.
The company’s e-commerce strategy is a mix of its own platform, LifestyleStores.com, and select marketplaces such as Myntra, Flipkart, Ajio, and Amazon.
Domestic sourcing and private brands
Lifestyle is also deepening its ‘Make in India’ commitment, with nearly 90-95 per cent of sourcing now domestic.
“Almost all of our footwear and 85 per cent of apparel are sourced within India. We are building strong manufacturing bases across hubs like Tirupur, Ludhiana, Jaipur, and Surat,” Iyer said.
The retailer’s private brands contribute around 33 per cent to overall sales. “Our private brands are treated at par with national labels in-store, they’re strong contributors and help us offer value across categories,” he added.
Festive momentum and GST boost
Lifestyle has seen a sharp uptick in demand this festive season, driven by a preponed Diwali and GST rate cuts.
“The festive buying period began around September 22 and we have seen very strong double-digit growth since then. The GST reduction from 12 per cent to 5 per cent on products up to ₹2,500 MRP has spurred consumption across the industry,” Iyer said.
On the premium side, Iyer noted minimal impact from the GST hike to 18 per cent for products above ₹2,500.
“For a customer buying a ₹7,000 product, a 6 per cent GST change adds about ₹400 — it doesn’t alter buying behavior. Demand in premium and super-premium categories remains stable,” he said.
Store revamp and consumer experience
The company recently unveiled a revamped store at Phoenix Marketcity, Whitefield (Bengaluru) — featuring a redesigned layout, new logo, and refreshed visual identity.
“It’s a completely new format – larger, more spacious, and experience-driven. We’ve introduced festive ranges across categories including western wear, ethnic wear, footwear, and accessories,” Iyer said.
Focused on fashion, not food
While several retailers are experimenting with café integrations and experiential zones, Lifestyle is choosing to stay within its fashion core.
“We want to remain a destination for fashion including apparel, beauty, footwear, eyewear, and travel accessories rather than diversify into food or other categories,” he clarified.
Looking forward, Lifestyle expects to maintain double-digit growth over the next three years, led by digital acceleration and expansion into tier 1 and tier 2 towns. “We aim to consolidate our leadership position while growing faster online and deepening our presence beyond metros,” Iyer said.
