Threads and Trends: How a Fashion Brand Reached ₹4000 Crore in Revenue in Just 9 Years
In a short span of just 9 years, this brand carved a niche, reaching a whopping revenue of Rs 4,000 crore with over 500 stores across 26 states !
Trent Limited, the prominent Indian retailer, has a star player in its portfolio: Zudio.
But what are the factors driving such phenomenal success?
Fast Fashion, Faster Turnover:
Zudio understands the fast-paced fashion industry really well, refreshing their inventory every 3 months which ensures customers always get fresh and trendy designs!
(FOCO) Model:
Zudio functions on a win-win FOCO (Franchise Owned Company Operated) approach. The brand minimises financial burden and capital expenditure by having franchise owners to invest in store setups whereas Trent operates the stores, ensuring operational efficiency.
Location, Location, Affordability:
Zudio targets and expands strategically in tier 2 and 3 cities, where affordable fashion options are less. This not only reduces the rental costs but also expands their reach to a wider, budget-conscious audience.
Marketing Magic:
Zudio avoids the traditional marketing route that comes with hefty advertising costs. Instead they rely on word of mouth promotion through satisfied customers who spread the word about Zudio’s stylish finds at accessible prices.
Zudio’s Winning Formula:
Zudio identified a gap in the Indian market. With an average per capita income of just Rs 1.7 lakhs, a vast majority of Indians couldn’t afford luxury brands. Hence, Zudio cleverly bypassed the elite 5% and targeted the 95% – with a typical price point below Rs 1000 per item.
Conclusion:
Zudio’s rapid growth is a fascinating case study, proving that understanding your target audience and prioritizing affordability can be a recipe for phenomenal success.
At a glance:
- Launched: 2016
- Revenue: Around Rs 4000 Crore(FY 2023)
- Number of stores: 546 (FY 2024)
- Owned by: Trent Limited
- Typical price point: Rs 1000 per item
- Business head: Marjolein Van Brandwijk
- Contribution: 48% to Trent’s revenue
Join the conversation: What are your thoughts on Zudio’s approach? Is their approach sustainable in the long run?Share your experiences and opinions in the comments below!