By: Himanshi Jain
Last updated : May 18, 2026 5:03 pm
In an exclusive conversation with Retail4Growth, Raghav Agarwal, Director of V-Bazaar shares how the brand is expanding across Tier 2 and Tier 3 in India through better customer experience, technology and value-driven retail strategies.
Retail4Growth connected with Raghav Agarwal, Director of V-Bazaar, to understand how organised retail is reshaping India’s Tier 2 and Tier 3 markets. From customer experience and visual merchandising to technology integration and expansion strategies, Raghav shares how V-Bazaar is building a retail ecosystem designed specifically for India’s fast-evolving consumers.
“The majority of the retail market of India is still unorganised. Even today, more than 50% of the market is unorganised. The whole concept behind V-Bazaar was bringing organised retail experience within Tier 2, Tier 3 and Tier 4 India,” he shares.
Retailing beyond metros
When V-Bazaar opened its first store in Lakhisarai in 2016, organised retail penetration in smaller cities remained limited. Consumers largely depended on fragmented local markets with inconsistent product quality, pricing, and shopping environments. V-Bazaar saw an opportunity to create what Raghav calls a “mall-like experience” through standalone large-format stores in densely populated markets.
“We are considered a mall because we have our own standalone building. The idea was to give the best customer experience as well as the best products at the right price.”
Today, the company operates across six states, with a strong presence in Uttar Pradesh, Bihar and Jharkhand, while eyeing deeper expansion into Delhi-NCR, Rajasthan, Chhattisgarh and eventually the Northeast.
Visual merchandising takes centre stage
As Indian retail evolves, so does the science of store presentation. For V-Bazaar, visual merchandising has become a core growth lever. Raghav believes modern retail is increasingly moving towards self-assisted shopping experiences with open visibility and easier product interaction. “What you show and how you show impacts how best you can sell,” he says.
The company has already begun transitioning towards a predominantly hanging-display format inspired by contemporary retail. Traditionally folded merchandise is now being replaced by double-hanging display systems that offer customers better visibility, easier touch-and-feel access, and simplified product selection.
“We are moving towards 70–80% fully hanging display models. It has helped us improve conversion and units per transaction by nearly 15–20%.”
Tech-enabled retail operations
V-Bazaar is also transforming into a technology-driven retail organisation. From procurement and inventory planning to supply chain allocation and customer analytics, the company is integrating processes into unified platforms to improve decision-making. Its stores already use AI-enabled video analytics in select locations to track customer movement, footfall conversion, heat mapping, and shopping behaviour.
Raghav explains, “Some of our cameras are AI-enabled. They track customer footfall, conversion, heat maps, and customer behaviour inside the store.”
The company is also preparing for a deeper omnichannel transition. While Raghav believes offline retail will continue dominating Tier 2 and Tier 3 markets for the foreseeable future, V-Bazaar is investing in “endless aisle” concepts and integrated customer fulfillment systems. Under this model, if a product size is unavailable in-store, staff can instantly locate inventory across the network through an internal application and arrange home delivery directly from another location.
What’s ahead for V-Bazaar
V-Bazaar plans to open nearly 25–30 stores this year alone and aims to cross the ₹2,000 crore revenue mark by FY29. Over the next four years, it expects to add nearly 100–120 stores, expanding its network to over 250 locations.
Store formats are also evolving. While the average store size currently stands between 7,500 and 8,000 square feet, newer stores are scaling up to 10,000–12,000 square feet to support wider assortments and stronger customer experiences. Raghav shares, “India is a very large market. There are many untapped regions and cities where we desire to enter.”