GH Pulse - January Newsletter 2025

Hello Reader,?

Welcome to the January edition of GH Pulse, where we bring you the latest updates from eRetail, key budget highlights and tech advancements shaping India's consumption story.

If January felt like the longest month of the year already, you’re not alone. The constant ups and downs kept everyone on edge, but Budget 2025 has emerged as a much-needed boost for retail brands looking to scale. With its focus on MSMEs, startups, and export-driven sectors, the budget sets the stage for a year of growth. From easing last-mile delivery to creating export-friendly conditions for fashion and lifestyle brands, Budget 2025 is a growth catalyst poised to help businesses thrive in competitive global markets.

For D2C brands, this is the perfect time to seize the opportunity. Rebates and reduced GST on essential goods and production inputs offer significant cost savings, freeing up funds that can be reinvested into scaling tech infrastructure and digital commerce initiatives. With more investment in technology and optimized customer experiences, brands can better engage consumers and encourage higher spending, turning this budget into a catalyst for growth and innovation.

Meanwhile, eCommerce is witnessing a surge in demand for intimate wear & grooming products as consumers continue to prioritize self-care where the number of electronic brands selling hairdryers, straighteners, and shavers online has increased significantly. Online sales in this category are growing at 22% year-on-year, compared to 8.9% in offline stores. At the same time, Q-commerce is playing a crucial role in driving operational efficiency for brands in categories like FMCG, Fashion, and Electronics.

On the fashion front, India’s fashion industry, which experienced a sluggish start in FY25, is poised for a strong recovery in FY26. A surge in demand is expected across Fast Fashion, Ethnic Wear, and Luxury segments, fueled by higher disposable incomes, increased wedding expenses, and favorable monsoons, particularly in smaller cities. The influence of Gen Z on fashion trends, eCommerce growth combined with strategic retailer expansions and digital innovations, will further contribute to the sector’s revival.

As 2025 unfolds, brands have exciting opportunities to scale, innovate, and thrive. By leveraging AI in Fashion to streamline operations, enhance go-to-market speed, and gain a competitive advantage, they can better serve consumers at scale. By embracing these digital transformation levers, brands can unlock their full potential and make this year truly remarkable!