How has ZUDIO taken over the fashion industry? | Zudio’s Business Model

Zudio is an emerging fashion brand in the Indian fashion retail industry that has recently been introduced and is giving competition to brands like Westside, Pantaloons, and Max. Today, the company's valuation is more than $500 million. Zudio was launched by Tata group's company Trent. If you have ever been to Zudio stores, you must have noticed that everything there is priced under 999 rupees. But how is Zudio managing this in today's competitive industry? Let's understand it in 3 points. Firstly, Zudio does not spend much on marketing and advertisements. In fact, their pricing and products are designed in a way that they spread through word of mouth. Secondly, Zudio follows a low margin, high volume approach. While a white t-shirt may cost between Rupees 500 to 1000 rupees in the market, it is priced at Rupees 299 in Zudio stores. Clearly, Zudio does not aim for high margins but relies on high turnover for profitability. Thirdly, Zudio saves on running costs by not locating its stores in the most premium locations of the city. Additionally, they source raw materials from inexpensive vendors and do their designing internally. Have you ever shopped at Zudio? What do you think about Zudio? Do let us know in the comments section.