Zudio Beauty: Tata`s Foray into Affordable Glamour. A Wise Move?

Case Code: MKTG481 Case Length: 7 Pages Period: 2024-2025 Pub Date: 2025 Teaching Note: Available

Price: Rs.400 Organization : Trent Ltd Industry : Retailing Countries : India Themes: Brand Extension, Growth Strategy, Consumer Marketing,Product/Service Value

Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

In October 2024, Trent Ltd., part of the Tata Group, launched Zudio Beauty, a standalone format focused on mass-market cosmetics. After the phenomenal success of Zudio Apparel – which had overtaken Trent’s original fashion brand Westside in store count and revenues – the company aimed to replicate its value-driven retail model in India’s fast-growing beauty segment. The initiative reflects Trent’s ambition to extend its value-driven retail model to a new, highly competitive, and brand-sensitive category. The beauty market in India is witnessing a surge in demand, driven by affordability, experimentation, and rising aspirations, particularly among young consumers in urban and semi-urban areas.

Zudio Beauty aims to offer an affordable yet trendy product range through a fast-refresh, private label strategy, complemented by a strong physical store presence and digital integration via Tata Neu. The company is betting on synergies with its apparel business, targeting the same value-conscious customer base as Zudio Apparel. However, it must navigate challenges such as intense competition from digital-first beauty brands, the need for brand differentiation despite shared manufacturing sources, and building consumer trust in a cluttered marketplace amidst intense competition from Nykaa, Reliance Tira, and D2C brands like Mamaearth. This case allows exploration of themes related to strategic growth through brand extension, operational execution in retail, and shifts in consumer behavior in the beauty segment. It can be used to teach topics such as Growth Strategy, Brand Extension, Private Label Retailing, Aspirational Buying, Psychographics, and the Consumer Decision-Making Process. It is suitable for courses in Retail Management, Marketing Strategy, and Brand Management.

Issues

The case is structured to achieve the following teaching objectives:

• Discuss the challenges of scaling a low-priced beauty brand.
• Examine the success factors in affordable apparel retailing.
• Explain the importance of balancing product affordability with aspirational branding.
• Analyze the scalability of a proven model in a different vertical.

Contents

Introduction
Mass Market Beauty In India
Zudio Retail Playbook
Zudio Beauty: Operational Model
Way Forward
Exhibits

Keywords

Product Mix; Growth Strategy; Brand Extensions;P Venkatesalu; Tata Neu; Brand Loyalty; Psychographics; Lipstick;

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