Zudio sold 90 t-shirts every minute of FY2024, indicating its dominance in the Indian fashion market.
By offering trendy, affordable clothing, Zudio has successfully disrupted the fast fashion space in India, capturing a large share of price-conscious shoppers.
In this article, we’ll put the pieces together and understand how Zudio became successful in one of the competitive markets in India and what a retail business can learn from Zudio’s success story.
Zudio Emphasizes Accessibility
“Zudio is all about accessibility. It’s accessibility in terms of fashion, accessibility in terms of price, accessibility in terms of location”
– Venkatesalu P, CEO of Trent, Zudio.
Cracking the balance between affordability, quality, and accessibility is one of the major reasons for the meteoric rise of Zudio in India.
Zudio is a brand under the Tata Group, which has long been associated with affordability and reliability in India.
By positioning itself as a provider of trendy, affordable fashion, Zudio capitalizes on a significant gap in the market.
Zudio’s CEO, Venkatesalu, shared at a retail convention how they positioned the brand around accessibility across the key areas–Price, Fashion, and Location–that have fueled Zudio’s success.
These are the pillars behind Zudio’s success story. Let’s dive a bit deeper into how Zudio has implemented the same in its business model.
1. Location: Picking the Perfect Location for Success
Selecting the right location is a critical process that could make or break a retail business and it’s a vital factor behind Zudio’s. Zudio understands the importance of the same and its role in boosting footfall and sales.
There are 590+ Zudio stores across India and the brand checks many crucial factors involved in retail site selection. Let’s dive a bit deeper into this now.
Active Zudio Stores in India
i) High Footfall Areas
Zudio targets locations with significant pedestrian and customer traffic, such as shopping malls and busy urban centers.
By situating stores in high-visibility areas, Zudio ensures that it captures the attention of potential customers.
For example, stores located in popular malls, and high streets tend to benefit from the natural foot traffic that comes with shoppers visiting other stores (complimentary brands).
ii) Proximity to Target Demographics
Zudio understands the importance of opening a store where there is not only high foot traffic but also a high concentration of their target audience, such as young professionals, students, and families.
This strategic placement ensures that Zudio stores are conveniently located for potential customers, driving sales and brand awareness.
iii) Market Expansion into Tier II and III Cities:
Zudio has expanded beyond metro cities into tier II and III cities, tapping into underserved markets with growing disposable income as we speak.
This strategy ensures that fashion is not limited to major cities, but reaches a broader audience across India.
The rise of urbanization in smaller cities has and will lead to increased demand for affordable fashion, and Zudio is capitalizing on this trend already.
To help retailers expand their presence in Tier 1, Tier 2 cities, and beyond, our location AI platform identifies the most profitable locations by analyzing footfall, competition, complementary brands, and more in targeted areas
2. Price: Affordability Without Compromise
Zudio’s core philosophy revolves around offering fashion-forward products at prices that resonate with the budget-conscious Indian consumer.
Zudio’s aggressive pricing model undercuts many established players in the fast fashion sector. Their clothing products start from Rs. 199, 399 and all the way up to Rs. 1500+. This diversified pricing strategy appeals to many cost-conscious consumers who expect a much better product than what they used to get.
Zudio has never run out of discounts throughout the year. They frequently run promotional campaigns, especially during festive seasons, making it an attractive option for price-sensitive shoppers.
From the pricing strategy, it’s clear that Zudio has made all the efforts to minimize operational costs and source materials efficiently to pass those savings onto their products.
This pricing strategy is one of the key player behind Zudio’s success story and from it’s clear that Zudio has made all the efforts to minimize operational costs and source materials efficiently to pass those savings onto their products.
i) Consumer Loyalty Through Affordability
Because Zudio’s products are priced well with quality products, it encourages repeat purchases.
With Zudio, customers feel empowered to experiment with their style without breaking the bank, fostering brand loyalty as they return to Zudio for all their fashion needs.
3. Fashion: Tailoring Fashion to Local Preferences
Zudio excels at staying on top of global fashion trends while adapting them to local preferences.
Zudio incorporates traditional elements and local cultural influences into its collections, making the fashion relatable to its target audience.
This cultural adaptability has allowed Zudio to stand out in a highly competitive and arguably saturated market.
i) Regular Collection Updates
Zudio frequently updates its collections to reflect the latest styles, ensuring that its offerings remain fresh and relevant.
This strategy involves closely monitoring fashion trends, both globally and locally. By releasing new styles every few weeks, Zudio keeps its inventory fresh and enticing for customers.
ii) Diverse Product Range
Zudio encompasses a wide range of clothes across different occasions from casual, and formal wear to ethnic wear. This allows them to tap into customers of all choices and ages.
Also, their product offering didn’t stop with clothes alone. They started offering fragrances, skincare products, and other small accessories. These are again, priced very affordable to entice customers to impulse buy.
What Can a Business Learn from Zudio’s Success Story?
From Zudio’s emphasis on accessibility towards price, fashion, and location, a retail business can understand the importance of the same.
If you are starting a retail business, doubling down on these would be a great way to start.
Let’s discuss what else a retail business could benefit from Zudio’s success:
Deciding on a Business Model
Venkatesalu, the CEO of Zudio has said that Zudio was an online venture in the beginning but they made a deliberate choice to operate only on an offline model.
Hence, Zudio made a conscious decision to operate exclusively as a brick-and-mortar retailer, unlike Trent’s other fashion ventures like Westside, which embraces both online and offline channels.
Key takeaways:
Every business must carefully consider which business model works best for its target audience and operational strengths.
While an omnichannel approach may be ideal for some, others may thrive by focusing on a single channel that offers a more personalized customer experience. Understanding where your customers are and how they prefer to shop can help shape the right model.
For a retail business, utilizing a location intelligence platform can help understand the demographics better and strategically open a store based on footfall data, competition analysis, predictive analytics, and more.
Supply Chain Efficiency
One of the hallmarks of Zudio’s success is its ability to consistently keep up with fast fashion trends.
The brand ensures that its shelves are stocked with the latest styles daily, allowing customers to always find fresh, trendy items.
Key takeaways:
For any business, especially in fast-paced industries like fashion, supply chain efficiency is critical to see your business thrive.
Maintaining a reliable and responsive supply chain ensures that customers always have access to new products, minimizing out-of-stock situations and improving overall customer satisfaction.
Businesses should invest in robust supply chain management systems to stay agile and responsive to market demands.
Apart from these, Zudio has invested in retail marketing strategies like having low-cost products along the way to the POS, having an excellent social media presence, influencer marketing, etc to boost brand loyalty and sales over time. These are all a vital part of Zudio’s success story.
In a Nutshell
Zudio’s domination in the fast fashion market in India comes from its strategic focus on accessibility, competitive pricing, and a strong understanding of its customer base.
Make decisive choices for your business model and double down on what works best to establish your position in this competitive space.
To seal your success, utilize our location intelligence platform to gain insights into customer demographics and vital location data.
