Zudio has shaken whole fashion industry. Top players like Reliance Trends, H&M, Zara, and Westside Zudio is giving competition to these brands. And that is the strategy that Zudio has for looking for the right audience.
It means selecting the right consumer groups. In India, there are two kinds of people living. The first is the rice people living in the big cities, and the other is the middle class. All the big fashion retail stores in India were always targeting Indian groups. They were convinced that this group comprised wealthy individuals. Make them happy, give them good quality products prices. They will take it, and our profit will come. However, there were no products available for “bharat.” Now, people in India also want to buy good-quality things. However, there was a budget issue, and no one was thinking about it.
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Then Rattan Tata thinks about them, and that group never disappoints anyone with this thinking. Tata Group started the Zudio brand in Bangalore in August 2016. They had a simple theme: we will provide fast fashion, i.e., the latest trendy things, at reasonable rates. Our target audience is not large. Here products start at 49, and there is nothing above 999 for anything you want to buy, i.e., t-shirts, jeans, shoes, and much more.
Zudio achieves its aspirations by winning the hearts of small people with brand pleasure; a vig showroom with AC and money is the same as a mall. This brand also helps students, like Gen Z kids, run to buy products from Zudio. and with this, Company has made 3200 CR in just 6 years. And with this comes the second strategy: low cost of purchase, and on the other hand, they don’t spend on design; they just focus on trending and follow the same way. With this, there is no research or development, however it is made.
The second thing that comes is the manufacturing; they don’t have labor or the cost of manufacturing. Instead, what they did was order a person to give 2 lakh t-shirts at a certain rate, and after that, add the gross profit they sell in the Zudio store. Hence, they do not hold the fuss of manufacturing, and when you have multiple vendors, like taking a shirt from him and taking pants from another person, you have a lot of range and can churn your stock very quickly.
And if there is a new design on the market, Zudio will take roughly 15–20 days to get it ready for the Zudio outlet. Apart from that, they are creating newness in the store, and for that, they change the stock a little every week, and with every two-month Zudio full store, it is different. And with this, probably what you have seen today will not be available after 2 months. This strategy was adopted by Zara, so they have adapted Zudio from Zara.
Third stage 3 is the foco model. What they have chosen is that they don’t invest in building to open; they search for investors who can make that building for him, and by doing so, they will share the revenue of the building with him. With stagy, they have increased 120 stores in 12 months to 10 stores every month, and now they have a total of 396 stores across India, and by the end of the end of the year, they will have 500 stores. And most important, Zudio does not open its stores in big cities or prime locations. They will open their store in the interior area,
