The Brand That Broke All Marketing Rules | Zudio Marketing Case Study

0:00 do you know zudio which is one of India's most popular fashion brands does not have a website where you can buy its clothes online and yet zudio has grown insanely as a brand in the last few years today when almost all modern companies are trying to sell online in order to reach more people zudio is actually doing exactly the opposite and they are still managing to defeat all of them take a look at the stock price of

0:22 trend which is zud's parent company it has grown 1200% in just the last 4 years so the question is how in a time when selling online is almost like a rule for every brand to grow today how exactly did zudio grow so crazily and that to by only running physical stores let's decode but before we get started a special thanks to zeroa 01 Network for supporting this

0:56 channel now to understand the success of zudio we will have to go back to 2016 this was the year Trend limited which by the way is part of the Tata group had launched studio now the goal here was not to make it like any and every other fashion brand tataa had a very very clear purpose here they wanted to cater to the aspirations and the preferences of India's youngest Shoppers which are jenes now you might ask me why only

1:21 jenes see in many many ways jenzi is currently the most techsavvy generation in our time and if you yourself are a jenzi or you have friends and family who are jenzy you would probably very well understand how this particular generation has been brought up in a world that is heavily influenced by the internet and by social media now genes are influenced by social media and the internet so much that more than 45% of users on Instagram are jenzi and more

1:47 than 20% of users on YouTube are also jenzi and the reason why I'm stressing on these social media platforms so much over here is because they are super powerful tools for people to discover new trends in a place like fashion I see earlier people would have to look through newspapers and magazines in order to find out what kind of fashion is in Trend but today almost all of that has shifted to social media today when people like you and I want to know what

2:12 is trending in the world we typically look for the answer on Instagram reals or on YouTube videos right and considering jenzi was practically born and brought up in the age of social media all of this automatically becomes a lot more applicable to them than to any other age group so with all of this said I'm sure as at this point you might be wondering if jenzi is so active and comfortable with the internet and social media why the hell would a brand like

2:37 zudio which almost entirely focuses on jenzi not even launch online let me tell you a very interesting fact that would answer this question for you about 80% of India's genzi population lives in non-metro tier 2 and tier 3 cities now while these smaller cities might not have the glamour of bigger cities like Mumbai Delhi Bangalore Etc the people who live there have almost equally big aspirations young people in tier 2 and tier 3 towns want to dress well they

3:05 want to stand out and they also want to express themselves almost as well as tier one town people do but the biggest problem today is that they do not have enough affordable and trendy options and that is exactly where zudio found a massive massive Gap they realized that while jenzi is tech savvy for sure e-commerce in tier 2 and tier 3 cities is simply not as effective as it is in Tier 1 cities today and also on top of

3:30 that returns in e-commerce in India can go as high as 40% so it is super hard for a fashion brand especially one that caters to the masses to make money meaningfully here so therefore zudio decided to stick to the old school touch and feel approach by only opening physical stores and not focusing on selling online at all today about 85% of zudio stores are located in non Metro cities and by the way even in the case

3:56 of Metro cities zudio is very very careful of where they open their stores look at this map of zudio stores in Delhi do you notice how there is no zudio store in the southern part of Delhi now take a look at this map of zudio stores in Mumbai once again there are no zudio stores in the South part of Bombay now the reason for this is very very simple both South Delhi and South Bombay are perceived to be Posh areas

4:19 this means the richest of the rich who live in these two cities live in these particular areas now I want you to take a moment and imagine this scenario you own a clothing brand and you have enough money to open up a store in the best locality of two of India's richest cities Delhi and Mumbai the question is would you do that well if I were you I would definitely do that but the thing is zudio which by no means is shot on

4:43 cash decided to not open up stores in these very localities and if you look just a little deeper the reason is actually very very smart see Zio's entire Mission practically is to make fashion more affordable and accessible even though having a store in the most PR localities of a city is a matter of Pride to some extent it simply does not help zudio if you think about it because if an entire locality is Rich enough to

5:08 not even care about buying clothes from a budget brand like zudio then zudio is obviously better off not having a store there at all and yes I know this sounds stupidly obvious when you think about it right now but if you pause for just one moment and think about this deeply it honestly is not so obvious and I'll even tell you why look the problem with a lot of Brands today is that they run behind all all kinds of customers at once most

5:31 of them do not have a clear understanding of who their target audience really is as a result of that they end up splurging a lot of money in the wrong direction and eventually end up disappointing themselves as well as their investors so if you are an entrepreneur or you are someone who wants to start their own brand in the future zudio is a perfect example of what can happen if you find one kind of customer profile and use all your time

5:56 effort and energy in serving them rather than focusing on everybody but this let me tell you is not the end of what we can learn from zodio see just having the Insight that genzies do not have enough shopping options definitely gave zudio a big head start but it obviously was not enough to keep competition away right and zudio also knew this could become a problem that is why they started focusing on their next biggest superpower which is pricing now if you

6:21 have ever been to a zudio store you will know that their products are priced insanely low you will find t-shirts for as low as 200 rupees shoes for for as low as 500 rupes jeans for as low as 700 rupes and whatnot now for a country like ours in India when an average person between the age of 18 to 24 earns less than 6,000 rupes per month this kind of pricing is a massive blessing because if

6:44 you think about it for jenzi affordability is not really a preference it is actually a necessity because many of them are still in college or at best in the early years of their first job and this very affordability Factor ladies and gentlemen has become zud's biggest unique selling proposition today also another very very interesting aspect of zudio is how it focuses on building its own brand look unlike other retailers like Shopper stop or Reliance Trends which actually focus on

7:11 aggregating and selling other brands zudio exclusively sells its own products now one obvious advantage of this is that it keeps its costs low but more importantly this helps zudio build a much more stronger and more distinct brand identity in front of practically everybody and let me tell you that that particular brand loyalty is something that jenzi as an age group values very very deeply so in a way if you zoom out a little and think about it zudio

7:39 strategy is very very simple control the entire value chain from design to retail and therefore deliver high quality products at insanely low prices now while zudio almost entirely focuses on genzi and budget conscious Shoppers there is one more brand by the same parent company which caters to a slightly more premium audience and in a very slightly different way as well I'm talking about Westside whose stores are spread across tier to cities where India's middle class and their

8:07 aspirations are growing very very rapidly today while Westside has about 109 stores in Metro and tier one cities it has 120 one stores in tier 2 cities now a very interesting thing about these tier 2 cities is that while people here have huge Ambitions competition and availability is extremely extremely low so for a brand like Westside which has great access to resources and capital thanks to the Tata group it is a brilliant opportunity to serve this

8:34 heavily heavily underserved market so now if you take all of these information pieces together and zoom out a little bit you will probably realize how Tata group through its entity called Trent is trying to capture all kinds of Shoppers in India through smart business and marketing practices they are targeting young and budget conscious Shoppers through zudio and a little more premium Shoppers through their brand called Westside also by the way most of us today will not know this but for many

9:00 many years in the past fashion has been considered a big luxury in a country like India it has almost always been pursued as something which only the rich and the wealthy could afford but today almost none of us can imagine a world like that and a big part of credit should go to tata's Trend they have really managed to make high quality fashion available and accessible to everybody no matter where you live how old you are or how much money you earn

9:25 well that's about it for this video if you enjoy this case study on zudio and maybe learn something new from it please do hit that like button and consider subscribing to my channel I promise you there are a lot more marketing and business related case studies that I will be covering on this channel see you in the next video take care and goodbye