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Economy and Finance

Economy and Finance

ZERO ad spend, 4000 cr revenue ! How Zudio became a HIT?

05 Jun 2024 Zinkpot 301
Zudio, which is a TATA brand, was launched in 2017. By the end of 2024 its revenues have touched more than ₹4,000 crore! How did the affordable fashion brand become a big success story in 7 years?

 

Zudio sells 90 T-shirts every minute and 20 pairs of denims every hour. The key to Zudio's success lies in its focus on accessibility, affordability and attractive product offerings.

 

What is Zudio’s secret?

 

First, There is no spend on any advertisement. They sell cheap so word of mouth brings new customers.

 

Second, They don’t spend to open stores at prime locations. They open showrooms smaller cities and cheaper locations. The money they save helps them to keep the product prices low.

 

Third, they know that a large section of Indian populations has low incomes but they are addicted to fast changing fashion. Zudio became a hit as it provided fashionable yet affordable. All these factors clicked with the youngsters and Zudio became a HIT.

 

Further it distributes franchisees therefore they have to spend minimum on the store opening. They rather share a fixed revenue share with the franchisee owner. Zudio franchisee requires an average store size of approximately 10,000 sq ft, and the investment for a new Zudio store typically ranges between Rs 3-4 crore.

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