Why Zudio
If the Indian apparel retail industry’s growth has to be shown through any specific brand, Zudio is one of the best examples as it is among India’s fastest-growing brands. The brand sells 40 T-shirts and 10 denim jeans every minute.
Zudio’s triumph can be attributed to strategic choices that set it apart in the Indian market. With a 100 per cent private label strategy, the brand controls its entire product journey, ensuring competitive pricing and top-notch quality.
Its exclusive offerings are curated in-house and made available at very sharp price points. Zudio has evolved into a rapidly growing concept that appeals to all with a deep commitment to being accessible across facets – fashion, reach and lifestyle.
Belonging to the prestigious business house, TATA Group, the brand’s journey started with the objective to build a cheaper fashion brand to compete with Zara.
Impressive Journey
Offering RMG for men, women and children, Zudio in just seven years boasts approximately 352+ stores. Between FY ’21 to FY ’23, Zudio has added more than 215 stores. In FY ’23, Zudio’s gross revenue stood at Rs. 3200 crore and it forayed into 28 new cities and also added its presence in 38 cities.
Focusing on youth aspiration and with a run rate of selling two million garments per week in FY 2023, Tata has been propelled to shift gears and accelerate the brand’s expansion even further.
In future too, the brand’s growth is set to soar as its expansion initiative aims to bring the total store count to 500 marking a significant step in its offline expansion. If investors and sources are to be believed, in long term, the brand has massive store expansion plan.
Brand’s Strengths
Reasonable prices and trendy collections are the biggest strengths of Zudio as it offers T-shirts at Rs. 400, hoodies and shirts at Rs. 800. Its access to cost-effective suppliers allows it to keep all products under Rs. 1500 and average prices at Rs. 500, appealing to budget-conscious shoppers.
With 71 per cent of young Indians seeking quality lifestyle products, Zudio’s pricing strategy aligns well, leading to rapid sales growth.
Its strategic store locations in city outskirts, Tier-2 cities and towns have helped minimise competition, keep costs lean and resonate with local shoppers. The commitment to dynamic inventory management by introducing new products weekly prevents the accumulation of unsold inventory and keeps the collection fresh.
Competitive Landscape
Brands like Azorte, Roadster, Louis Phillipe and Netplay pose strong competition, showcasing rapid growth and outpacing counterparts like Superdry and Scotch & Soda.
Opportunity for Bangladesh
Zudio is already importing from Bangladesh, especially products like sweaters, and going forward, the growth of the brand will naturally increase and so will its sourcing from Bangladesh.
The emphasis is on minimising lead times and introducing fresh collections in stores continuously. The aspiration is to constantly shrink the time window between the initial design concept to being available on shelves.
The Tata Group is focusing on increasing its sourcing in collaboration with international RMG manufacturers as recently it has collaborated with Sri Lanka’s MAS Amity Pte. Ltd., (a subsidiary of MAS Holdings).
Zudio’s goal to combine high fashion and affordable prices is in contrast to value retailers.
