Article الزيارات: 1111

India, that is Bharat

Article الزيارات: 1111
IndiaBharat
Article الزيارات: 1111

24 November 2023, Mumbai

The Value Fashion Market in Small-Town India

The value fashion market in small-town India is booming, fueled by rising incomes and consumer expectations. Zudio, the flagship brand of Trent, is a prime example of this trend, facing stiff competition from other prominent retailers.

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Zudio's Rapid Growth and Strategy

NZudio has experienced rapid growth since its launch in FY'17, expanding to over 350 standalone stores and generating revenues of Rs 3,540 crore. 

The brand's franchise-owned company-operated model has been instrumental in reducing inventory costs, attracting the attention of national retailers like Yousta (Reliance Retail), Style-Up (ABFRL), and InTune (Shoppers Stop) who have adopted a similar strategy.

Market Analysts' Forecast

Market analysts from Motilal Oswal Financial Services predict a steady 6 percent CAGR growth for the value fashion segment from 2020 to 2026. 

However, with rising disposable incomes and favorable demographic trends, the growth rate is expected to surge to a remarkable 23 percent CAGR.

Unorganized Dominance and Regional Retailers' Lag

Despite the segment's growth potential, unorganized retailers still hold a dominant position, accounting for nearly 57 percent of the market. 

Regional retailers have yet to make a significant mark in this domain.

5 key insights :

  1. Booming Market: Rising incomes and consumer expectations drive growth.
  2. Zudio's Success: Rapid growth, 350+ stores, Rs 3,540 crore revenue.
  3. Franchise Model: Inventory cost reduction, national retailer adoption.
  4. Market Forecast: 6% CAGR growth, potential for 23% CAGR.
  5. Unorganized Dominance: Regional retailers' presence limited.

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