In the fast-paced fashion world dominated by giants like H&M and Zara, a homegrown Indian brand is carving out its own path in the retail fashion industry.
Let’s dive into the story. Is Zudio owned by Tata? Yes, indeed. Zudio is a brand owned by Trent Limited—a retail company that falls under the Tata Group umbrella.
But Trent doesn’t stop at fashion and apparel; it also oversees the food and beverage brand, Star Bazaar. Interestingly, a whopping 95% of Trent’s profits come from fashion and apparel.
So, what’s Trent’s secret sauce?
It’s Zudio.
How did the Tata Group make it a success? What’s their winning strategy in shaking up the fast-growing fashion industry?
As Ratan Tata says, “Success is not about the destination, it’s about the journey.”
The Tata Group’s foray into fashion began in 1998 with the introduction of Westside in India. Westside was aimed at middle and upper-class consumers. Fast forward to 2016, and Zudio was born—a value fashion brand catering to budget-conscious consumers who want to stay trendy without emptying their wallets.
This strategy proved to be a game-changer for Tata Zudio, particularly in tier 2, tier 3, and tier 4 cities, which hold a significant chunk of India’s fashion market—up to 60%.
Tata’s budget-friendly brand, Zudio, is not just holding its own; it’s outshining its sibling brand, Westside!
Ready to uncover how Tata’s clothing brand, Zudio, became the go-to fashion choice for today’s youth without breaking the bank? Let’s unravel the success strategy behind Zudio’s journey in the Indian retail fashion market.
The millennials Expectations
The internet’s made today’s millennials super savvy about trends, especially in the fast-paced world of fashion in India. They’re always on the lookout for something new and exciting, and they want it fast! That’s where Zudio steps in.
Zudio’s got this cool system in place to keep up with the latest trends—it’s all about being agile. They’re quick to adapt and bring in new collections, giving them a big edge over the competition. This way, they stay trendy and catch the eye of fashion-forward consumers with their stylish and visually appealing offerings
Making it affordable
At the heart of Zudio’s success is understanding what Indian shoppers really want. They know exactly what the lower middle class and the youth segment needs.
By producing their own fashion products and keeping their supply chain super tight, Zudio can offer products at prices that are hard to beat.
How do they do it?
By getting their materials from budget-friendly suppliers and making their bulk production for multiple brands under their holdings. Producing products under Trent’s private label ensures that every cent from selling the product goes directly to Zudio, without any commissions paid to other brands. And here’s the mark—they don’t sacrifice style, fashion, or quality. That’s why young folks are flocking to Zudio
FOCO franchise Model
Ever wondered how Zudio keeps its quality consistent across its franchises? To break this down, Zudio operates on a unique FOCO (Franchise Owned Company Operated) model. Here’s why:
Picture this: You’re interested in owning a Zudio franchise in India. With an initial investment of around 75 lakhs to 1 crores, you step into the game as the franchisee. The beauty? You own the space and handle the day-to-day stuff like managing employees and paying rental etc, while Tata Group takes the responsibility on the big stuff like supply chain and overall store operations.
Now, why is this such a win-win? Well, for starters like young entrepreneurs, it helps maintain the brand’s stellar reputation and ensures top-notch quality across the board. So, whether you’re shopping in Zudio Chennai or Zudio Mumbai, you’re getting that same Zudio experience you know and love. Pretty neat, right?
Here I want to share with the complete history of Zudio franchise business
| Brand Name | Zudio |
| Founded Year | 2016 |
| Owned By | Trent Limited (portmanteau of Tata Retail Enterprise) |
| Industry | Fashion Retail |
| Product areas | BeautyWomen Men Ethnic Kids Loungewear Footwear |
| Business Model | Franchise business |
| Franchise Model | FOCO (Franchisee Owned Company Operated) |
| Stores | 388 all over India |
| Franchise Cost | 75 lakhs to 1 crore |
| Net profit percentage | 7 % |
Bypassing Modern Marketing
How does zudio get higher product sales without spending a ton on branding and advertisement?
They follow the old-school method of traditional marketing. Instead of spending money on fancy ads, or celebrity endorsement, they adapted a new route.
Zudio puts their energy into delivering top-notch products that speak for themselves, relying on satisfied customers to spread the word and build trust and local influencer marketing to review their products. This not only keeps Tata’s legacy alive but also ensures that quality always shines through.
Another question you might be asking: Does zudio have online shopping? Nope! Tata Zudio sticks to brick-and-mortar stores only. Why? Well, the chance of returns is higher with online sales, and there are also extra costs for product delivery and managing the supply chain. So, they keep it simple with offline shopping
Higher Sales Volume
To sustain its brand identity as an affordable fashion brand, Zudio focuses on high-volume sales instead of higher product margin sales. Zudio maintains a vast majority of outlets in India.
If you visit the store, you’ll notice that all the products’ prices are below ₹999. This serves as a significant advantage for both Zudio and consumers from tier 2 and tier 3 cities who seek fashion with quality and affordability!
Zudio has eliminated middlemen and distributors at the retail level, which also adds as an advantage. They sell their products directly in their stores without any intermediaries.
Zudio’s journey in disrupting the value fashion segment as mentioned by mind, it is valued at 2.5 trillion which is one of the fastest and growing apparel markets in India.
To achieve their god level establishment around India, the FOCO model franchise has given them a bigger hand, now Zudio has 352 standalone outlets already operating in 119 cities, the potential for expansion seems limitless.
By creating trendy fashion outfits that are both affordable and in line with current trends, while specifically targeting the youth demographic, Zudio has become the top fast fashion brand in India.
If you’re into successful franchise stories, keep an eye on Franchise Bhoomi—we’ve got more tales to share. Don’t forget to pass this story along to any friends interested in starting their own franchise business!
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