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Tata Group‘s retail arm, Trent, has made waves in the Indian market with its highly successful Zudio apparel stores, which target the value-conscious consumer. Buoyed by the success of its affordable clothing brand, Trent has now ventured into the beauty segment with Zudio Beauty, launching its first store in Bengaluru. The move is part of a strategic push into the mass-priced beauty market, a space that major players such as Reliance, Nykaa, and Shoppers Stop have traditionally overlooked, focusing instead on premium and luxury products.
Executives close to the development report that Zudio’s triumph in the affordable clothing segment inspired Trent to explore this untapped beauty market. With a strategy focused on trendy yet low-priced products, Trent aims to replicate Zudio’s apparel success in the beauty industry by offering products accessible to a larger demographic.
The Zudio Apparel Boom: A Runaway Success
Zudio was first launched as an independent retail format in FY18, and since then, it has been a phenomenal success. Its inception within Star Bazaar stores in FY17 quickly led to its separation due to immense consumer demand. Today, Zudio accounts for over one-third of Trent’s total revenue. The brand has outpaced competitors in the value fashion space, with 559 stores across India by June 2024, contributing significantly to Trent’s explosive growth.
In FY24, Trent reported revenues of ₹12,375 crore, a 50% increase over the previous year, largely driven by Zudio’s impressive sales figures. The brand has been pivotal to Trent’s 45% compound annual growth rate over the last five years. In fact, Zudio’s revenue crossed ₹7,000 crore in FY24, solidifying its position as a major player in the Indian retail landscape.
Moreover, Zudio’s contribution has not only enhanced Trent’s domestic presence but also led to its first international foray in Dubai’s Silicon Oasis Mall in 2024. This expansion is aimed at tapping into the Indian diaspora and replicating its successful business model abroad.
What Made Zudio Click?
The key to Zudio’s success lies in its ability to capture the growing aspirations of India’s middle-class and small-town consumers. India’s consumption patterns, once concentrated among affluent urbanites, have broadened, with an increasing number of shoppers from smaller cities seeking fashionable, affordable products. Zudio has successfully tapped into this trend by offering stylish clothing priced below ₹1,500, appealing to this burgeoning market.
Moreover, Zudio’s agile supply chain, rapid inventory turnover, and exclusive designs ensure that its product lines remain fresh and in demand. This has resulted in high store productivity, with an average revenue of ₹16,300 per square foot—double the industry average. The Tata brand’s reputation for quality has further reinforced consumer trust, allowing Zudio to emerge as a go-to destination for affordable fashion.
Entering the Affordable Beauty Market
After establishing a strong foothold in value fashion, Trent is now eyeing the beauty industry. Zudio Beauty’s launch comes at a time when the beauty market is heavily skewed toward premium segments, leaving a gap in affordable beauty products. Trent’s aim is to make beauty products accessible to the same value-conscious consumers that propelled Zudio’s success in apparel.
Experts believe that the move could shake up the beauty industry, much like Zudio did in fashion. The launch is a natural extension of Trent’s strategy to dominate the bottom-of-the-pyramid retail market, targeting aspirational consumers who are increasingly conscious of both style and price.
Looking Ahead: Zudio’s Future Growth
With its proven track record in value fashion, Zudio is well-positioned to continue its aggressive expansion both in India and internationally. The company’s ability to adapt to changing consumer preferences, combined with its focus on low-cost, high-quality products, ensures it remains competitive in a crowded market. As Trent ventures into beauty, the company hopes to recreate its apparel success story, making Zudio a leading player in yet another consumer segment.
