How Zudio & Its Market Strategy In Indian Fashion Market?

If you go to Zudio for shopping, you’ll be surprised by their pricing model, and you’ll start to wonder why Zudio’s products are so cheap. While brands like H&M, Zara, and Allensolly are expensive.

Let us check how Zudio conquered the Indian fashion market with its distributive pricing model. 

Zudio was launched in 2016 in India as a fast-fashion brand, owned by the famous TATA group under Trent Limited. The brand offers a wide range of products, including clothing, footwear, and accessories, at prices that are often lower than those of its competitors. By pricing its products lower than many other fashion brands. Currently, they have more than 130 stores across India.

The question is how Zudio became so successful and conquered the highly competitive and saturated Indian fashion market within a short span of time.

The answer is simple it lies in their business model.

• Zudio’s business model is simple, working based on offering affordable and trendy fashion products to consumers across India. 60% of the Indian population consists of young middle-class people and they always want trendy quality products at cheap prices.  Zudio Identified this gap and penetrate directly into that segment by offering quality trendy fashion products at low-cost prices. Their pricing ranges between 99 to 999.

• Another reason Zudio is affordable is that it follows a low-cost business model. The company uses cost-efficient production methods and sources its raw materials from low-cost suppliers, which helps to keep its prices low.

• Additionally, Zudio focuses on high-volume sales rather than high margins. The company has a large number of stores across India, and it relies on a high turnover of products to maintain its profitability. By selling a large volume of products at lower prices, Zudio can generate significant revenue and maintain its position as an affordable fashion brand.

• Zudio spends 0 rupees on advertisements, you can’t find any celebrity or model poster in their advertisement. They simply market their product through word of mouth. This saved them a lot of money.

Overall, Zudio’s business model is focused on providing affordable and trendy fashion products to consumers in India. Because Indian Customers love affordable products. Zudio’s efficient supply chain and low-cost marketing strategies such as influencer marketing and word of mouth maintain profitability.

Like Zudio, your brand can penetrate directly into a mass market if you find the right strategy and segment.

Source: Kalidasan K Shalu