India i.e. Bharat

Small-Town India's Value Fashion Market: A Thriving Landscape

The value fashion market in small-town India is flourishing, driven by rising incomes and evolving consumer aspirations. Zudio, Trent's flagship brand, exemplifies this trend, facing intense competition from established retailers.

Zudio's Rapid Expansion and Strategic Approach

Since its inception in FY'17, Zudio has experienced remarkable growth, expanding to over 350 standalone stores and generating revenues of Rs 3,540 crore. Its franchise-owned company-operated model has effectively reduced inventory costs, captivating the interest of national retailers like Yousta (Reliance Retail), Style-Up (ABFRL), and InTune (Shoppers Stop), who have embraced a similar strategy.

Market Analysts' Growth Projections

Market analysts from Motilal Oswal Financial Services anticipate a steady 6 percent CAGR growth for the value fashion segment from 2020 to 2026. However, fueled by increasing disposable incomes and favorable demographic factors, the growth rate is projected to leap to an impressive 23 percent CAGR.

Unorganized Retailers' Dominance and Regional Retailers' Lag

Despite the segment's substantial growth potential, unorganized retailers maintain a commanding position, accounting for nearly 57 percent of the market.

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

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