What is Zudio? You may wonder. It is another retail subsidiary of Tata Group (Trent Ltd.). Embark on a journey into the fashion realm where Zudio and Westside, both under Tata’s wing, coexist.
Zudio, with its budget-friendly flair, stands shoulder-to-shoulder with Westside. Curiosity may arise – why this tandem ownership?
We’re about to unravel the tale behind Zudio and Tata’s dual fashion domain. Think of Zudio as your stylish yet pocket-friendly buddy. Tata’s decision to own both isn’t just business; it’s a deliberate choice to offer something for everyone.
Let’s uncover the narrative of Zudio and the thoughtful strategy behind Tata’s alignment of Zudio and Westside!
(A) What is Zudio?
Zudio is a value-oriented brand in Tata’s portfolio. Yes! Zudio is owned by Tata Group. It serves as a distinct fashion destination encompassing diverse departments. Here you will get all the products for self-grooming and fashion ranging from beauty to women’s, men’s, and kids’ apparel, loungewear, and footwear.
Do you know what sets Zudio apart from its contemporaries? Its pocket-friendly products!
Positioned as a mass-market brand, Zudio endeavors to deliver superior quality fashion at affordable price points, ensuring style simplicity for every moment.
Sounds interesting! Isn’t it?
Guess what, Zudio isn’t the only clothing brand of Tata… Really? Yes, you can call it a younger sibling of Westside, Tata’s pre-existing clothing brand.
Why did Tata launch two clothing brands? Is it beneficial for Tata, the parent company to encourage competition between its own subsidiaries?
Well, Zudio and Westside are not competitors of each other!
How is it possible? You may wonder.
Here is the twist- Zudio and Westside target two different market segments and consumers. Instead of competing, both siblings complement each other.
This strategic move allows Tata to provide a comprehensive range of fashionable products, offering accessibility without compromising quality. Zudio’s commitment lies in being a go-to destination where fashion meets affordability, enriching your style experience across various departments.
But still, what was the need to launch Zudio separately? Tata could expand the target market and customer segment too without spending too much on separate brands. You may say. The mastermind plan of Tata to launch two different clothing brands is quite visionary. We will discuss them in detail in the upcoming sections.
(B) Zudio Vs Westside: Competition or Complementation?
Do you know Trent Limited (the retailer of Tata Group) earned a humongous revenue from the operations of Zudio and Westside? And i.e. Rs.7,715.19 crore! Also, they contributed to the net profit of Rs.105.13 crore in the March quarter of FY23.
Let’s go through the key differences between Zudio and Westside across various aspects-
|Mid to Low-segment
|Mid to High-segment
|Middle-class and upper-class consumers
|Affordability, Trendy Fashion
|Superior Quality, Mature Style
|Tier 1, 2, and 3 cities
|Tier 1 cities
|Neighborhood shopping centers,Standalone locations
|Upscale malls,Shopping centres
|Basic and affordable clothing and accessories
|Stylish and fashionable clothing and accessories
|Aggressive (Affordable pricing campaigns, visual merchandising, seasonal sales, customer loyalty programs, etc.)
|Lenient (Already have a loyal customer base)
|Emphasis on affordability, basic materials
|Higher-quality materials and construction
|Growing faster due to larger market segment and affordability
|Established in the market, targeting middle to upper-class consumers
Is Zudio available online? Yes! You can get Zudio fashion apparel in major window shopping websites like Amazon, Flipkart, etc.
By now you must have understood what is Zudio. Aren’t you curious to know how Zudio offers apparel at affordable prices? That’s a long story though. But don’t worry! We have explained everything in detail in “Zudio Business Model.” Go through the article to know how it is disrupting Indian fashion at scale!
(C) Why Tata Owns Zudio Alongside Westside?
Here we came to the most anticipated query of folks- Why did Tata, the mastermind behind Westside, also launch Zudio into the fashion game?
It might seem like a head-scratcher, but let’s dive into the story and make sense of it together.
(C.1) The Power of Brand Recall: Double Trouble or Strategic Brilliance?
Tata’s decision to maintain separate stores for Westside and Zudio is rooted in the significance of brand recall. What does that mean? Well, it’s all about making sure you remember them. While sharing stores might be cost-efficient, the loss of distinct brand identity in consumers’ minds could prove more detrimental.
The secret lies in the segregation strategy. Won’t you feel clear-headed if you find affordable clothes and expensive & supreme quality clothes at two different places? Yes, of course. That’s what Tata did by keeping separate apparel brands.
(C.2) Product Positioning: Style Tailored Just for You
Tata has brilliantly maintained the delicate balance between two brands- Zudio and Westside-
(C.2.1) Westside: Your Quality Haven
Don’t you wonder- What’s special about Zudio? If you love top-notch quality and a touch of maturity in your style, Westside is your go-to. It’s like the trusty friend who never disappoints, catering to the mid to high-segment crowd.
(C.2.2) Zudio: Trendy Vibes on a Budget
Now, if you’re all about staying trendy without breaking the bank, Zudio has your back. What is Zudio? It’s the younger sibling of Westside, attracting the mid to low-segment audience with pocket-friendly rates and the latest fashion trends.
(C.3) Balancing Act to address Price vs. Quality Dilemma
In a price-sensitive Indian market, the distinction between Westside and Zudio is crucial. Tata knows you care about how your clothes look and feel, not just the price tag. Westside fans are there for the quality, and Tata isn’t about to mess with that. Trading quality for lower prices? Not on their watch.
(C.4) Tackling Tier 2 Challenges
As you have read in the comparison table of Zudio vs Westside. The former is dominant in tier 2 and 3 cities while the latter is dominant in tier 1 cities. Reason? Go through the following points and you will know-
(C.4.1) Westside’s Stumble in Tier 2 Cities
Westside faced challenges in tier 2 cities, where consumers prioritize affordability over premium clothing. The lack of awareness and misalignment of product offerings hindered Westside’s expansion plans in tier 3 and 4 cities.
(C.4.2) Birth of Zudio: A Strategic Move
Understanding the limitations, Zudio emerged to address the untapped potential in tier 2-3-4 markets. Tata aimed to establish a first-mover advantage, recognizing the rising trend-consciousness in these regions.
(C.5) The Unorganized Sector Dominance
Recognizing that tier 2-3-4 markets are dominated by the unorganized sector, Zudio strategically positioned itself with better trends and competitive pricing, creating a niche with a stronger brand presence.
In a nutshell, Tata’s ownership of Zudio alongside Westside reflects a meticulous strategy. By maintaining a clear distinction between the two brands, Tata aims to preserve brand recall, address specific market challenges, and strategically position itself to dominate diverse segments of the Indian retail landscape.
Note: Seeing the success of Tata’s Zudio, Reliance also landed in the competition by launching Yousta! It offers affordable apparel too. Visit the article on Yousta vs Zudio, for detailed information.
(D) Final Words: What is Zudio & Why does it exist alongside Westside?
As we close the curtain on this exploration, the dynamic duo of Zudio and Westside within Tata’s fashion family unfolds a rich narrative. Zudio, your budget-friendly style companion, amplifies the tapestry of affordable fashion choices. Whereas Westside is the destination for supreme-quality fashion.
Tata’s purposeful ownership of both brands is your ticket to a diverse wardrobe, catering to your unique tastes.
In this symphony of style, Zudio and Westside converge, each narrating a distinctive story. Together, they symbolize Tata’s commitment to inclusivity, ensuring fashion transcends boundaries, and embracing affordability, quality, and style – all for you.
The fashion journey continues, with Zudio and Westside weaving a tale just for you!