Sanjeevani Mathur’s Post

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Sales specialist-1 HP Inc.| K J Somaiya Institute of Management, Mumbai, Batch-2022-24|

Zudio's Remarkable Growth and Market Strategy Zudio, a fast fashion brand, has outpaced McDonald's in India with 552 stores compared to McDonald's 512 outlets. This trend indicates that Indian consumers are buying more clothes than fast food. Fast Fashion Leader with Affordable Pricing- Zudio's appeal lies in its fast fashion model, offering trendy clothes at affordable prices, with everything priced under INR 999. The brand has become known for its dupes of trending clothes from multinational brands like Zara and Mango, making fashion accessible to a broader audience. The affordability and variety make it difficult for Gen Z shoppers to leave the store empty-handed. Zudio provides a wide range of products, from lip glosses and claw clips to wet wipes and fancy dresses, making it a one-stop solution for all fashion enthusiasts. By competing with multinational brands in terms of fast fashion and affordable pricing, Zudio has established itself as a brand that everyone knows about, irrespective of whether they have visited the store. The excitement around Zudio is palpable. For instance, a personal memory of visiting Udaipur includes eagerly awaiting a visit to the Zudio store and the thrill when a store opened in my vicinity. Effective Expansion Strategy- Zudio's expansion strategy of starting in tier 2 and tier 3 cities and then moving to tier 1 cities has been particularly effective. This approach has helped Zudio build a robust customer base in smaller cities before tapping into the larger urban markets. Ironically, Jodhpur, for example, has 3 Zudio stores but only 1 McDonald's outlets, highlighting Zudio's significant market penetration.

View profile for Rohan Mukherjee, graphic

Growth and Marketing @ Pocket FM | Driving B2C Growth with Innovative Strategies

McDonald's India has 512 stores while Zudio has 552 Stores! 😱 People buy more Clothes than they eat Burgers and Fries! 🍔 🛍 A neat flywheel is driving this growth. Zudio's fast fashion is indeed fast – in FY23, they sold 🛍 👕 90 T-shirts every minute! 👖 20 pairs of jeans, 💄 17 lipsticks, and 19 fragrances every hour! ⏱ The model is simple: ✅ Focusing on their captive brand, and latest fashion, minimizing lead times, and shrinking the time from design to shelf. ✅ This strategy has resonated with Indian consumers, with Zudio stores averaging INR 17,000 sales/sqft compared to the industry standard of INR 10,000. 💰 The key to this success lies in the flywheel effect. 🔁 With a low payback period of just 1.5 years, Zudio has been expanding rapidly, adding 203 stores last year and totaling 552 stores in India – more than McDonald's outlets (512). 🤯 The parent company, Trent, has experienced a massive stock jump, increasing by 5 times in just 2 years since Zudio's launch. 📈 This growth has left me thrilled with the returns as Trent remains my largest direct holding. 💹 What do you think about this trend? Is the current PE ratio of 127 for Trent justified? Share your shopping experience at Zudio and your perspective in the comments below. 💬 (Data Source: Trent Annual Report) #business #india #consumer #growth

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