Inditex to introduce two new brands Berkshka, Zara Home in India

In its latest annual report, Spanish fashion giant Inditex announced plans to introduce two of its renowned brands, Bershka and Zara Home, into the thriving Indian market. The brand will launch the inaugural store of Bershka will be located in Mumbai while the Zara Home store will be launched in Bengaluru.

Known for its previous successful ventures like Zara in 2010 and Massimo Dutti launched eight years ago, Inditex now plans to target India’s youth population. Through its Bershka store, the company aims to directly challenge Reliance Retail's new store Yousta, which also caters to the younger consumer segment.

According to experts, Bershka will be primarily geared towards teens to mid-20s, distinguishing itself from Zara's target audience of 20-40-year-old fashion enthusiasts. Devangshu Dutta, Founder, Third Eyesight, a retail consulting firm, notes, with its emphasis on knits and casual wear says, Bershka's product range will perfectly align with the lifestyle of its intended customer base, thus ensuring minimal cannibalisation of Zara's market share.

Whether Bershka will be able to strike the right price points demanded by young Indian consumers remains to be seen. According to a recent report by Motilal Oswal, valued at Rs 2.5 lakh crore and constituting 57 per cent of India’s total apparel market, the value fashion segment is one of the fastest-growing in India. The market is being explored by consumers with rising disposable incomes beyond metro and Tier-1 cities.

A unit of the Tata Group's Trent, Zudio has witnessed remarkable growth since its inception in 2016-17, boasting nearly 400 standalone stores. The store’s success has spurred the entry of national retailers like Yousta by Reliance Retail, Style-Up by Aditya Birla Fashion and Retail, and InTune by Shoppers Stop into the affordable youth clothing segment. This competitive landscape underscores the significance of understanding and catering to the evolving preferences of Indian consumers in the fashion industry.