Once again, two big Indian companies, Reliance and Tata, are competing, and it’s great news for shoppers in India! Reliance has launched a brand called ‘Yousta,’ aiming to give Tata’s Zudio a run for its money. Zudio is popular because it offers stylish clothes at low prices, making it a favorite among shoppers.
Launched in August 2023, Yousta opened 50 stores in just its first year! All of Yousta’s products cost less than Rs 999, with most items priced below Rs 499, similar to Zudio.
The Success of Zudio
Zudio started as a store in 2018 by Trent, which is part of the Tata Group. It quickly became very popular and is now one of the biggest clothing brands in India. Since it began in 2017, Zudio has opened many stores and has become a significant part of Trent’s earnings, growing from just 8% of revenue to over a third!
Tata’s Trent reported a 50% increase in sales for 2023-24, reaching Rs 12,375 crore, with Zudio making a big contribution. In fact, Zudio earned more than Rs 7,000 crore in 2024.
Why is Zudio Winning?
Zudio has been successful because it understands the changing tastes of shoppers, especially in smaller towns. More people have disposable income and are becoming more aware of fashion. Zudio combines style with affordable prices, a formula that works well for them.
The company keeps its costs low with smart designs and a strong sales approach, making it twice as effective in generating revenue compared to many competitors.
What is Reliance Doing?
Reliance Retail saw a slight drop in revenue recently but is determined to succeed with Yousta. The company invested Rs 14,839 crore to support Reliance Retail’s growth. With Yousta, they plan to offer new styles every week and cater to popular trends, just like Zudio does.
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