Vaidehi Bhargava
Trent Ltd., the Tata Group company behind the popular brands Zudio and Westside, has become a major success story in India’s retail industry, seeing its stock soar by 250% in the past year. Zudio has been a significant driver of this growth, targeting the budget-conscious, fashion-forward Indian consumers with trendy apparel under INR 999. Unlike its higher-end sibling brand, Westside, which caters to premium shoppers, Zudio aims at the mass market, particularly in Tier 2 and Tier 3 cities. Its focus on affordability, fast fashion, and minimal discounts has resonated well with this demographic, allowing Zudio to maintain a steady customer base without relying on seasonal discounts.
Zudio’s expansion has been rapid, with store counts rising from single digits a few years ago to over 550 locations today. This growth is enabled by Trent’s efficient business model, including its Franchise-Owned, Company-Operated (FOCO) model, where franchisees invest in stores while Trent operates them. This model has helped Zudio expand swiftly across urban and semi-urban areas, minimizing Trent’s operational risks while leveraging franchise investments.
Trent’s growth also reflects its shift into new segments. Recently, the company launched Zudio Beauty to capture India’s growing interest in affordable beauty products. This expansion into beauty and personal care (BPC) comes alongside the introduction of Pome, a lab-grown diamond jewelry brand, allowing Trent to diversify beyond fashion. The retail group is eyeing strong revenue growth in BPC, as affordable, high-quality beauty products gain traction with middle-class consumers. Analysts suggest that while Trent’s high valuation calls for caution, its strategic positioning and innovative product lines offer substantial long-term potential.