Zudio: Disrupting the Affordable Fashion Space in India

Case Code: BSTR695 Case Length: 13 Pages Period: - Pub Date: 2025 Teaching Note: Available

Price: Rs.300 Organization : Trent Ltd Industry : Textiles & Apparel Countries : India Themes: Disruption, Growth Strategy Brand Differentiation,Competitive Strategy

Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case captures the success story of India based value fashion brand Zudio and how it redefined the value fashion segment through its attractive product lineup of affordable, trendy, high-quality designs; aggressive store expansion strategy; responsive supply chain; and minimal advertising. Started in 2016 as an apparel counter at a hypermarket store, Zudio grew into a go-to brand for trendy and budget-friendly fashion, capturing a large share of price-conscious consumers in India.

The case explores Zudio’s business model, lean supply chain, expansion strategy, and low-cost marketing strategies. The Franchise Owned Company Operated (FOCO) model of franchising facilitated Zudio’s aggressive store expansion, allowing it to tap into mostly targeted customer segments. The retailer relied on minimal marketing and promotion spends by leveraging on influencer partnerships, word-of-mouth promotions, organic social media engagement, and content marketing, to expand its reach.

Despite its stupendous growth in the value fashion segment, the brand faced a set of challenges. These included overcoming the intense competition in the value fashion space, thin profit margins, building a loyal customer base, complexity of managing multiple store locations, perception of being a “low-priced” brand, and concerns over the environmental impact of its fast-fashion model.

Issues

The case is structured to achieve the following teaching objectives:

• Understand the market segmentation of fashion brands.
• Examine the business model of an affordable fast fashion brand.
• Analyze the growth strategy of a value focused fashion brand.
• Identify the key challenges faced by Zudio and explore strategies to overcome them.

Contents

Introduction
Background Note
Business Model
Secret of Success
Results
Challenges Ahead
Exhibits

Keywords

affordable fashion; fast fashion; Value Fashion Brand; disruption; competitive strategy; brand management; business strategy; FOCO Model of Franchising; market segmentation, growth strategy,Zudio; Business Model; The Fashion Pyramid;; Low-end Disruption

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