The brand is expanding rapidly into offline retail, with plans to open 100 stores in the next five years.
New Delhi: Bengaluru-based fashion brand The Bear House aims to reach Rs 1,000 crore in revenue by the financial year (FY) 2030. The company, which started as an online marketplace seller in 2018, is expanding rapidly into offline retail, with plans to open 100 stores in the next five years.
“We have been profitable since day one, and our growth has been steady. We started with Rs 2 crore in revenue and this year, we are on track to close at around Rs 130 crore for FY25. By FY26, we aim to hit Rs 250 crore, and our long-term goal is Rs 1,000 crore by 2030,” said Tanvi Somaiya, founder, The Bear House.
Expanding offline presence with 100 stores
The Bear House initially focused on online marketplaces, leveraging platforms such as Myntra, Flipkart, and Ajio to scale its business. The company later launched its direct-to-consumer (D2C) website in 2022 and has now begun its offline expansion.
“We started with a phased approach—first marketplaces, then D2C, and now offline retail. Our first store opened in Bengaluru’s Bhartiya City in March, and it’s performing well. Encouraged by the response, we plan to open 20 stores this year, with 10 already signed,” she explained.
The brand’s expansion strategy includes securing space in key malls, despite challenges in getting premium locations. “Initially, we struggled to get into a Phoenix mall, but after proving ourselves in Bhartiya City, we secured spots in Phoenix Kurla and Phoenix Palladium. Malls are now starting to recognise the potential of D2C brands,” she stated.
The company aims to open 100 stores in five years, with a strategic mix of high-street and mall locations. “Right now, 85% of our revenue comes from marketplaces, but as we expand offline and through D2C, we want to shift to a 60-40 revenue split, reducing our dependence on marketplaces,” Somaiya noted.
Balancing marketplaces, D2C, and offline growth
Despite offline expansion, marketplaces remain a crucial part of The Bear House’s strategy.
“Marketplaces provide unmatched reach, but to build a brand, we need our own identity. That’s why we are investing in D2C and offline retail,” Somaiya said.
The company has also expanded internationally, launching in the Gulf Cooperation Council (GCC) market through platforms like Amazon and Namshi. “We see great potential in the Middle East, and it aligns with our long-term growth plans,” she added.
Inventory & product strategy
The Bear House follows a data-driven approach to inventory management, avoiding excessive stockpiling. “We work on a six-month projection plan, ensuring we don’t overproduce. Unlike traditional brands that manufacture seasonally, we align our collections with real-time market trends,” Somaiya explained.
The company’s product mix is designed to balance trends with timeless appeal. “Legacy brands stick to tried-and-tested designs, while newer brands chase fast fashion. We focus on stylish, versatile pieces with mass-market appeal. Flannel shirts, for instance, contribute 40% of our revenue—an unexpected success given India’s climate,” she added.
The brand has also leveraged its manufacturing experience with global players like Marks & Spencer, Mango, and Zara to ensure high-quality standards. “We blend international design sensibilities with local preferences, offering premium products tailored for the Indian consumer,” Somaiya said.
Managing returns & customer experience
Returns remain a challenge for many fashion brands, but The Bear House has managed to keep its return rate lower than the industry average. “The norm in fashion e-commerce is around 35%, but we’ve brought ours down to 28% by perfecting our fit and prioritising quality,” Somaiya said.
The company is also investing in offline store staff training to enhance customer experience. “We don’t just focus on sales targets. Our store associates undergo continuous training to ensure they understand the brand and can communicate our philosophy effectively. Unlike many national retailers, we see in-store experience as a key differentiator,” she added.
Looking Ahead: Investing in omnichannel, Q-commerce.
While The Bear House’s omnichannel strategy is still in its early stages, the brand sees potential in integrating online and offline experiences. “Once we reach 20-25 stores, we plan to use them as dark stores to improve fulfilment and serviceability. Right now, omnichannel requires technology investments, which we are not prioritising in the next six months, but it’s definitely in the pipeline,” Somaiya said.
The company has also ventured into quick commerce, partnering with Zepto in select cities. “Zepto has performed exceptionally well for us, and we are seeing promising results. Right now, we live in Bangalore, Delhi, and one more city,” she added.
Future Outlook
With a clear roadmap for expansion, The Bear House is set on scaling its business while maintaining profitability. Following its recent Rs 3 crore investment deal on Shark Tank India with Namita Thapar, the brand is now positioned to accelerate growth across online and offline channels.
“We have never relied on external funding for operations, but this investment will help fuel our marketing efforts and offline expansion,” said Harsh Somaiya, co-founder in a statement. “Our long-term vision remains unchanged at Rs 1,000 crore in revenue, 100 stores, and a strong omnichannel presence.”
