In a world dominated by international fashion giants like Zara and H&M, an Indian brand has silently carved out its own powerful identity. That brand is Zudio, a retail fashion chain owned by Trent Limited, which operates under the Tata Group umbrella. While Trent also runs Star Bazaar in the food and grocery segment, nearly 95% of its profits come from the fashion and apparel sector. And the real game-changer for them? It’s none other than Zudio.
The Birth of Zudio
Tata’s world of fashion opened its gates in 1998 with the establishment of Westside, catering mainly to middle and upper-class clientele. But in 2016, valuing the mass market, the group came upon a tremendous uncharted opportunity. Thus, Zudio was born: a name for budget-conscious youngsters wanting to keep abreast of the trends without big-time price tags.
Whereas Westside is an upscale brand to some degree, Zudio was made for tier 2, tier 3, and tier 4 towns and cities in India, which together comprise almost 60% of fashion consumption in the country. This proved to be a game-changer. Today, even in terms of popularity, Zudio probably surpasses even Westside.
Winning Over Millennials
Present-day Indian millennials and Gen Z consumers are always online, discovering international fashion trends. They want not just stylish clothes, but also collections that change fast and come cheaply.
With an agile design set-up, the company marked a quick route to stores with brand new collections. Zudio is all about keeping things fresh and in-the-moment, appealing to the youth who expect a new collection every single time they enter the store.
Affordable Without Quality Compromise
Zudio essentially thrives on its positioning for value for money. Since it procures raw materials from cheap suppliers and then bulk produces under Trent’s private labels, there is an advantage of cost reduction to the brand without compromising quality.
These brands sell from their own stores directly to the consumer, thereby eliminating middlemen and distributors and allowing the lowest prices(average price below ₹999) to be offered while still maintaining possible quality standards uniformly in all the outlets.
FOCO Franchise Model
One of the other quick reasons behind Zudio’s growth is its FOCO, i.e., Franchise Owned, Company Operated model. Here is how it works:
The franchisees invest approximately ₹75 lakhs to ₹1 crore.
They own the store and handle the local expenses, including rent and staff.
The Tata team looks after supply chain, store operations, and product quality.
This model ensures that customers in Zudio Delhi experience the same quality and service as those in Zudio Chennai. It also helps young entrepreneurs partner with Tata while maintaining consistency across 350+ outlets.
Smart Marketing Without Big Budgets
Unlike Zudio, which has opted for an entirely different path, most global brands depend on celebrity endorsements and digital ads. Instead, word-of-mouth marketing locally is what gets leveraged, and those local influencers take the spotlight. The business has conversely let its fashion stands be its marketing by selling cool-looking, yet affordable clothes.
Interestingly, Zudio does not offer online shopping facilities. Return costs, delivery-related hassles, and quality-control issues are thereby avoided on the one hand; on the other, the customers are asked to go straight into their stores.
High Volume, High Growth
Zudio does not survive on high margins per product; on the contrary, it grows on high-volume sales. With close to 388 standalone stores spread over 119 cities, the brand has rapidly grown in footprint. Its focus on affordable fashion for the masses has made it the frontrunner in the ₹2.5 trillion value fashion market in India.
