Why Zudio is Growing 10X Faster Than Zara in India-The Curious Case

In a fashion face-off between global giants and local players, one unexpected contender is stealing the spotlight—Zudio, a homegrown brand under Trent Ltd., the Tata Group’s retail wing. While global fast-fashion titans like Zara and H&M saw their sales in India slow down to 8% and 11% growth, respectively, in FY24, Zudio sprinted ahead with a 95% surge. And here’s the kicker: it did so without an app, a website, or even traditional marketing. Yep, no glitzy ads or online sales.

So, what exactly is powering this desi rocket ship? Let’s break down the strategy behind one of India’s fastest-growing fashion brands.

1. Start Small, Think Big

Zudio began its journey in 2016 with just one store in Bangalore. Fast forward to FY25, and the brand operates 765 stores across 235 cities. To put that in perspective, its older sibling, Westside, took 27 years to open just 248 stores across 86 cities. Zudio did triple that in less than a decade.

And it’s not just about quantity. Zudio is earning about ₹16,378 per square foot—nearly double the industry average. According to Trent’s annual reports, store additions in FY23 alone were nearly 200. And instead of following a pan-India rollout strategy like its competitors, Zudio focused first on the South and West, scaling deeply before expanding wide. This targeted expansion approach helped the brand build strong regional traction and local loyalty.

2. Low Prices, High Volumes

Zudio keeps it simple and affordable. The price tags range mostly between ₹199 and ₹999, with 85% of the inventory under ₹1000. This low-margin, high-volume model makes fashion accessible to millions.

It’s a classic bottom-of-the-pyramid strategy—go big by going mass. Unlike Zara or H&M, which cater to more premium urban shoppers, Zudio addresses the everyday Indian consumer who seeks budget fashion without compromising on style. This pricing strategy also aligns with the aspirations of India’s growing middle class, particularly in Tier 2 and 3 towns, where affordable fashion remains a luxury.

3. Smart Real Estate + FOCO Model

No fancy malls. No expensive high streets. Zudio picks Tier-2 and Tier-3 cities, suburbs, and low-rent locations. Less competition, lower overheads, more footfall.

And here’s another secret sauce: Zudio follows the FOCO model—Franchise-Owned, Company-Operated. That means franchisees fund the store setup, and Zudio handles operations, ensuring brand consistency and quality. This keeps capital risk low and allows for rapid expansion.

Franchisees also benefit—Zudio’s strong backend systems, brand appeal, and operational support make it an attractive, low-risk investment for local business owners. It’s a win-win model that scales fast and smart.

4. No App, No Site, No Problem

Zudio made a bold move: no e-commerce. While others were battling online logistics, returns, and delivery challenges, Zudio doubled down on physical stores. And it worked. Why? Because their target audience prefers touch-and-feel shopping. Plus, skipping online ops means no headaches about tech maintenance or reverse logistics.

Zudio instead utilises its in-store presence and attractive product turnover to drive consumer loyalty. The experience of discovering something new in-store every two weeks keeps foot traffic consistent and exciting.

5. Lightning-Fast Inventory Turnaround

In the world of fashion, the speed of inventory is everything. Zudio manages a turnaround of just 15 days, while most rivals take 45-60 days.

Thanks to Tata Group’s logistics network, bestsellers are restocked quickly, and new styles hit the shelves every fortnight. That means repeat visits, curiosity-driven purchases, and fresh styles all year round.

This agility in inventory management is supported by their centralised supply chain systems and strong vendor relationships. Zudio’s backend tech and processes have been quietly but effectively optimised to move stock like clockwork.

6. 100% Private Labels = 100% Control

Zudio sells only in-house brands. No third-party labels. This gives them complete control over design, production, and pricing. Private labelling helps Zudio respond quickly to fashion trends, launch collections efficiently, and improve profit margins (with no external brand commissions). It’s fast fashion in its purest, most efficient form.

Because they control the full design-to-shelf cycle, Zudio’s merchandising is incredibly responsive. If a print or silhouette isn’t working, it will be replaced within a week. That level of adaptability is rare even in global brands.

7. From Blink-and-Miss to Billion-Rupee Giant

Let’s rewind to 2018. Trent’s revenue pie? 96% Westside. Zudio? Barely a blip. But fast forward to today, and Zudio isn’t just visible—it’s practically the whole show. Today, Zudio contributes nearly half of Trent’s total revenue.

In FY23 alone, Trent clocked in consolidated revenue north of ₹8,200 crore—and Zudio’s meteoric rise had everything to do with it. From a few pilot stores to a full-blown fashion juggernaut, it’s no wonder investors are sitting up and paying attention. In fact, the company’s stock has more than doubled in the past year. Coincidence? Not likely.

It’s Not Just Fashion—It’s a Full-Blown Movement

Zudio’s story isn’t stitched together with catwalk glamour or high-end labels. It’s about knowing exactly what the Indian consumer wants—and delivering it faster than anyone else. No flashy ambassadors. No over-the-top campaigns. Just affordable fashion, tight execution, and a store-opening spree that’s hard to keep up with.

This is retail done the desi way: frugal, focused, and wildly effective. By going deep into smaller cities, keeping supply chains lean, and focusing on in-house labels, Zudio didn’t just scale—it rewrote the playbook.

And now? Everyone’s watching. Because what started as a side project might just end up being the blueprint for India’s next big budget retail wave—whether it’s in footwear, electronics, or beyond. If the Tata Group decides to copy-paste Zudio’s strategy into other categories, we’re talking about the birth of an entire value-driven ecosystem.

Dalal Street has its eye on Zudio—and so should you.

This playbook may soon inspire similar models in other segments, such as footwear, accessories, or electronics. And if the Tata Group chooses to replicate Zudio’s blueprint, we could be witnessing the rise of a full-scale budget retail ecosystem in India.

What’s Next?

With over 765 stores, a presence in 235 cities, and explosive year-on-year growth, Zudio is showing no signs of slowing down. While Zara and H&M are trimming sails, Zudio is scaling new cities, opening new doors, and grabbing more market share with every passing quarter.

Expansion plans include deepening the presence in Tier 3 cities, exploring standalone men’s and women’s store formats, and increasing store sizes to offer a wider assortment.

So, the next time someone says fashion retail in India is slowing down, point them to Zudio. Because this brand isn’t just keeping up. It’s leading the race—10X faster.

References

Zudio
Trent Ltd.
LYTTY
Tracxn
Fashion Law Journal
Capitalmind
Franchise Bhoomi
Economic Times