Zudio, Tata Group’s low-cost clothing brand, is making major gains in the Indian retail industry. According to Trent Ltd’s annual report for FY24, Zudio now has 545 outlets in 161 cities, surpassing Westside, another Tata-owned retail brand with 232 stores in 91 cities. This aggressive growth demonstrates Zudio’s growing popularity among Indian consumers.
Zudio opened 46 new stores in FY24 and expanded its presence in 48 more, totaling 203 additional locations. This rapid expansion is mirrored in the brand’s astounding sales figures, which include 90 T-shirts per minute and 20 denim pieces per hour. Other popular goods were 19 scents and 17 lipsticks, which were sold each hour. These data highlight Zudio’s effective strategy, which focuses on accessibility and a compelling product offering.
According to Trent Ltd.’s annual report, Zudio’s success is due to its efficient supply chain, which prioritizes lowering lead times and getting new collections into stores as soon as feasible. Zudio provides accessibility, timeliness, and flexibility by sourcing almost all of its products from India. New Zudio stores require ₹3–4 crore in capital to cover capex, deposits, and inventory expenditures.
Zudio has a clear financial impact. Fiora Hypermarket Limited (FHL), which operates Zudio and Star, recorded a total income of ₹192.33 crore for FY24, an increase from ₹187.25 crore the previous year. The company’s total comprehensive income was ₹12.47 crore, compared to a loss of ₹11.98 crore the previous year. Trent’s consolidated revenue for the year was ₹12,375.11 crore, with a profit of ₹1,477.46 crore.
According to Trent Ltd.’s annual report, Zudio’s success is due to its efficient supply chain, which prioritizes lowering lead times and getting new collections into stores as soon as feasible. Zudio provides accessibility, timeliness, and flexibility by sourcing almost all of its products from India. New Zudio stores require ₹3-4 crore in capital to cover capex, deposits, and inventory expenditures.
P. Venkatesalu, Trent’s Executive Director and CEO, voiced confidence in the company’s ability to navigate the next growth phase, despite a trying year for retail in India. He acknowledged the competitive market, but stressed the abundance of opportunities available, allowing for numerous successful players.
Zudio generally operates in the value market, attracting younger customers. According to Wazir Advisors, India’s value retail industry (excluding food and groceries) is predicted to rise significantly to $170 billion by 2026, up from $111 billion in FY23. This segment is forecast to develop at a 15% CAGR, exceeding the broader retail sector’s expected 10% CAGR.
According to Trent Ltd.’s annual report, Zudio’s success is due to its efficient supply chain, which prioritizes lowering lead times and getting new collections into stores as soon as feasible. Zudio provides accessibility, timeliness, and flexibility by sourcing almost all of its products from India. New Zudio stores require ₹3-4 crore in capital to cover capex, deposits, and inventory expenditures.
The success of Zudio has inspired national retailers to enter the market, including Yousta (Reliance Retail), Style-Up (ABFRL), and InTune (Shoppers Stop). Trent’s twin strategy of operating both Zudio and Westside in the value area, with integration on the back end and distinction on the front, has been successful. This strategy enables both brands to coexist without severe cannibalization, exploiting their strengths in physical and online shopping, respectively.
To summarize, Zudio’s rapid expansion and high sales have set Trent Ltd. up for continued success in India’s booming value retail industry.
