Retail Growth Approaches

While global fashion giants 𝗯𝘂𝗿𝗻 𝗯𝗶𝗹𝗹𝗶𝗼𝗻𝘀 𝗼𝗻 𝗰𝗲𝗹𝗲𝗯𝗿𝗶𝘁𝘆 𝗲𝗻𝗱𝗼𝗿𝘀𝗲𝗺𝗲𝗻𝘁𝘀 and digital campaigns, one Indian brand quietly built a 𝗿𝗲𝘁𝗮𝗶𝗹 𝗲𝗺𝗽𝗶𝗿𝗲 𝗯𝘆 𝗱𝗼𝗶𝗻𝗴 𝘁𝗵𝗲 𝗲𝘅𝗮𝗰𝘁 𝗼𝗽𝗽𝗼𝘀𝗶𝘁𝗲. Zudio, owned by Tata's Trent Ltd, has rewritten the fast fashion playbook with a radical simplicity strategy. With 545 stores across India and revenues crossing $1 billion in FY25, this value fashion retailer has achieved what many premium brands struggle with - profitable growth without the marketing noise. The secret lies in their contrarian approach. While competitors chase metro cities, Zudio targets Tier 2 and 3 markets like Surat, Kanpur, and Bhubaneswar - cities with growing disposable incomes but underserved by premium retailers. No celebrity campaigns, no e-commerce push, no premium positioning. Instead, Zudio made pricing their brand identity. Their stores average 9,500 square feet compared to competitors' 21,000 square feet, yet generate ₹16,300 revenue per square foot - double the industry average. In fiscal 2024 alone, they opened 203 new stores and entered 46 new cities, proving that operational efficiency trumps marketing flash. Trent's consolidated revenue hit ₹4,656 crore in Q3 FY25, with Zudio driving the majority of this growth through their disciplined expansion strategy. 𝗞𝗲𝘆 𝗟𝗲𝘀𝘀𝗼𝗻𝘀: 1. 𝗠𝗮𝗿𝗸𝗲𝘁 𝘀𝗲𝗹𝗲𝗰𝘁𝗶𝗼𝗻 𝗺𝗮𝘁𝘁𝗲𝗿𝘀 𝗺𝗼𝗿𝗲 𝘁𝗵𝗮𝗻 𝗺𝗮𝗿𝗸𝗲𝘁 𝘀𝗶𝘇𝗲 - Tier 2/3 cities offered higher growth potential than saturated metros 2. 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗲𝘅𝗰𝗲𝗹𝗹𝗲𝗻𝗰𝗲 𝗯𝗲𝗮𝘁𝘀 𝗺𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴 𝘀𝗽𝗲𝗻𝗱 - Superior store productivity created sustainable competitive advantage 3. 𝗦𝗶𝗺𝗽𝗹𝗶𝗰𝗶𝘁𝘆 𝘀𝗰𝗮𝗹𝗲𝘀 - Clear value proposition resonated better than complex brand narratives 4. 𝗟𝗼𝗰𝗮𝘁𝗶𝗼𝗻 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝗶𝘀 𝗯𝗿𝗮𝗻𝗱 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 - Strategic placement became their primary customer acquisition tool 𝗪𝗵𝗮𝘁'𝘀 𝘆𝗼𝘂𝗿 𝘁𝗮𝗸𝗲: 𝗜𝘀 𝗭𝘂𝗱𝗶𝗼'𝘀 𝗮𝗻𝘁𝗶-𝗺𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵 𝘁𝗵𝗲 𝗳𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝗿𝗲𝘁𝗮𝗶𝗹, 𝗼𝗿 𝘄𝗶𝗹𝗹 𝘁𝗵𝗲𝘆 𝗲𝘃𝗲𝗻𝘁𝘂𝗮𝗹𝗹𝘆 𝗻𝗲𝗲𝗱 𝘁𝗿𝗮𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗯𝗿𝗮𝗻𝗱𝗶𝗻𝗴 𝘁𝗼 𝗰𝗼𝗺𝗽𝗲𝘁𝗲 𝘄𝗶𝘁𝗵 𝗴𝗹𝗼𝗯𝗮𝗹 𝗴𝗶𝗮𝗻𝘁𝘀 𝗲𝗻𝘁𝗲𝗿𝗶𝗻𝗴 𝗜𝗻𝗱𝗶𝗮? Share your thoughts in the comments below! #FastFashionIndia #IndianBusiness #BrandingDebate

H&M, Reliance, and Pantaloons are getting killed by Zudio Trent Limited India's $50 billion fashion market still has significant room for growth compared to more mature markets like China and the United States. To put it in perspective, India has only 8.5 organized retail stores per million population, compared to China's 23 stores per million population. However, in just 8 years since 2016, Zudio has become one of India's fastest-growing fashion retail chains, with over 545 stores across 150+ cities. How did they achieve this growth? 1) Affordable Fashion: ↳Zudio recognized that Indian consumers desire trendy clothing at accessible prices like everything under 999/-. ↳This attracts students and tier 2 & 3 cities. They spend 77% more on their online transaction. ↳Trendy clothes at low prices. 2) Private Labeling: ↳ Private labeling maximizes profit margins, as commissions for other brands are eliminated. ↳They churn out fresh inventory every 2 weeks. ↳This keeps them relevant in pop culture and makes them trendy. 3) Inventory update: ↳With fast fashion as the core offering, Zudio has the highest turnover ratio among competitors - at 160%. ↳ Every Zudio store practically becomes new every 2 months. 4) Operational Efficiency ↳They understand their target market that wants fashion at affordable prices and doesn’t care about labels. ↳There are 10 Zudio stores in Mumbai. None of them are in the central/southern parts. ↳This avoids expensive real estate and helps them focus on their ICP which are tier 2/3 folks. 5) No E-Commerce ❌ ↳They wanted to avoid the costs associated with delivery and the high rate of returns in the e-commerce world. ↳ Being part of the Tata Group has allowed Zudio to benefit from existing infrastructure, supply chains, and brand trust. Zudio's revenue growth has been impressive, with Rs. 6000 crore sales in FY24. ✅They don’t give discounts. ✅They don't do seasonal clothing. The brand aims to reach 1000 stores by 2025, showcasing its ambitious expansion plans. At the rate Zudio is growing, it's poised to revolutionize affordable fashion retail across India! What are your thoughts on Zudio's rise in Indian retail? #retail #fashion #growth #startup #success

DMart makes 76.8% of its revenue from groceries, but most of its profits are from clothes. Now, Zudio is killing their secret money-maker. Last year, DMart - Avenue Supermarts Ltd generated ₹49,533 crores in revenue. While groceries contributed 56.95% of sales, the apparel section contributed 22.37%, but with much higher margins. [ANNUAL REPORT AVENUE SUPERMARTS LIMITED] This is DMart's genius model. → Use low-margin groceries to attract footfall. → Then, convert shoppers to high-margin apparel purchases. It worked brilliantly for years but they had one flaw. DMart treats clothes like any other commodity: basic displays, a functional shopping experience, and limited designs. Indians bought them because the prices were unbeatable and the quality acceptable. But Zudio shattered this assumption. Same ₹299 price point but with: → Fashion-focused store layouts and ambiance → A shopping experience that feels premium despite low prices → They refresh their inventory by adding new designs every 15 days These psychological shifts helped Zudio to become one of the favourite brands of Indians and it led them to generate a revenue of more than $1 billion in FY 25 [The Economic Times] As an industry fashion professional, I have been privy to Zudio's production, sourcing and design processes, which has made me understand their strategy better. I have visited their factories during production and development phases and reviewed the way they bring creativity into their apparel offerings. Indians realized they could get both value and experience. The same shopper who loved DMart's grocery deals now expected more from their clothing purchases. This reveals the truth about Indian consumers. We're aspirational even when budget-conscious. We'll compromise on price but never on dignity. Which matters more to you: the price tag or how the purchase makes you feel?

On the speaking circuit lately I keep saying “profitable growth isn’t accidental, it is operational”. Universal Store is building this in publc, just posting +15.5% sales growth and +15.2% profit growth, even as its wholesale arm fell –13.8%. While many discretionary retailers are reporting sluggish updates, Universal is bucking the trend. The playbook? Private brands alongside multi-brand retailing: Universal and Perfect Stranger are driving loyalty and growth side by side. Control of margins & cash flow: less reliance on wholesale, less exposure to discounting competition. Brand investment: Perfect Stranger is bringing in new customers without cannibalising Universal stores. The takeaway for retailers: in a market where wholesale partners are struggling, the winners are those who own their brand, control their economics and stay laser-focused on product and customer.

In FY25, every 40 hours, ZUDIO opened a new store somewhere in India 🙌🙌 And, the way they see it is that it is a marketing strategy executed in brick and mortar, at a scale that is simply breathtaking. - In a world obsessed with CAC, LTV, and ROAS, Zudio's primary marketing metric is 'stores opened' - Each new location, an investment of Rs 3-4 crore in capex, inventory, and deposits, becomes its most powerful and permanent form of advertising It builds brand visibility not through fleeting digital impressions, but through a constant, physical presence in the consumer's daily life. .. This is, to some extent, a masterclass in micro-market penetration. The company entered 67 completely new cities in the last fiscal year, while simultaneously strengthening its presence in 56 existing ones. They are methodically building a dense network, store by store, making the brand inescapable in their chosen territories. .. And these aren't small kiosks. The average store size is growing, up 13% YoY to an impressive 10.3k sq ft. These large-format stores are designed to be destinations, effectively showcasing their wide range of offerings for men, women, and children, and capturing the entire family's wallet. - While competitors pour millions into ad campaigns and brand ambassadors to attract customers, Zudio invests in assets - These stores don't just sell products - they generate organic footfall, create local employment, and act as giant billboards that reinforce the brand's promise of accessibility .. With a clear path of reaching some 1.3-1.6k stores by FY28 (~780 right now), Zudio is effectively building its own distribution and advertising network in one go. It is a bold, capital-intensive strategy that demonstrates an unwavering belief in the power of physical retail. And that’s quite something, if you think of a long-term play. Nice, right? .. PS: This is part-1 of my three part deepdive series on Zudio, prepared basis inputs from a senior Trent leader. Next part releases tomorrow 8.30am here: https://lnkd.in/gWN9XeHr PPS: I release several biz/economy deepdives like this one daily. If you liked this one, do hit that “Follow” button, and join my WhatsApp community where I share a lot more such insights with 31k+ people every day: https://lnkd.in/gg7ThrEG Best, Jayant

What I’m gathering from a lot of my conversations with retailers is that scaling from 5 to 10 stores is a monumental jump. "Duh, it’s a 2x increase on doors..." Yes, but it’s an exponential stress test on the financial planning, operations team, cross-functional collaboration with marketing and all its systems. That jump forces you to define your non-negotiables and your flex points. The magic of your first few stores comes from intimate community connections. Now you’re a big company and you need systems that can replicate that magic across different markets. → Core brand elements that never change → Operational processes that scale cleanly  → Local elements that reflect each community Think about successful retail chains outside cannabis. Trader Joe's maintains identical product quality and service standards nationwide. But their store designs and community engagement shift with each location. Whole Foods—used to be—a shining example of how to maintain consistency while staying true to local/regional nuances. This is the blueprint fast-scaling cannabis retailers should follow. Your brand, POS system, inventory management, and staff training must be rock solid. But your product mix and store atmosphere should speak to local preferences. The stores that nail this balance make scaling look effortless - Embarc specifically should get a lot of praise for this. The truth is that you can't improvise anymore when you hit store six or seven. Your processes need to be documented and repeatable. Your brand standards must be crystal clear. But your connection to each unique community can't feel corporate. Cannabis retail is a hyper local business after all. The balance is crucial. How are store operators balancing these non-negotiables and flex points? Any great operators we want to shout out?

As an Area Manager, my primary goal would be to increase business and restore growth at the store level. Here's a step-by-step plan to achieve this, focusing on key performance indicators (KPIs): *KPI 1: Sales Growth* - Target: Increase sales by 10% within the next 6 months - Strategies: - Analyze sales data to identify top-selling products and categories - Implement targeted promotions and discounts to drive sales - Train employees on effective sales techniques and product knowledge - Monitor and adjust pricing strategies to stay competitive - Metrics to track: - Daily/weekly/monthly sales growth - Sales per square foot - Average transaction value (ATV) *KPI 2: Customer Retention* - Target: Increase customer retention by 15% within the next 3 months - Strategies: - Implement a loyalty program to reward repeat customers - Collect customer feedback and respond promptly to concerns - Offer personalized promotions and offers based on customer purchase history - Train employees on excellent customer service skills - Metrics to track: - Customer retention rate - Repeat business percentage - Customer satisfaction ratings *KPI 3: Employee Engagement* - Target: Increase employee engagement by 20% within the next 6 months - Strategies: - Recognize and reward employees for excellent performance - Provide ongoing training and development opportunities - Encourage employee feedback and suggestions - Foster a positive and inclusive work environment - Metrics to track: - Employee satisfaction ratings - Employee retention rate - Employee net promoter score (eNPS) *KPI 4: Inventory Management* - Target: Reduce inventory levels by 10% within the next 3 months - Strategies: - Analyze sales data to optimize inventory levels - Implement a just-in-time (JIT) inventory system - Reduce overstocking and deadstock - Monitor and adjust inventory levels regularly - Metrics to track: - Inventory turnover rate - Inventory levels - Stockout rates *KPI 5: Customer Experience* - Target: Increase customer satisfaction ratings by 15% within the next 6 months - Strategies: - Implement a customer experience program to collect feedback - Train employees on excellent customer service skills - Improve store ambiance and cleanliness - Offer personalized services and offers - Metrics to track: - Customer satisfaction ratings - Net promoter score (NPS) - Customer complaints and feedback By focusing on these KPIs and implementing targeted strategies, I believe we can increase business and restore growth at the store level. Regular monitoring and adjustment of these metrics will help us stay on track and achieve our goals. Vikram Gupta

Here are my 10 best cannabis brand marketing tips from a Chief Commercial Officer (CCO)—balancing growth, compliance, brand positioning, and revenue optimization: 1. Know Your Regulatory Limits—Then Maximize Within (This is masters level art.) Every market (state, country, platform) has different cannabis advertising rules. Use legal constraints as creative boundaries, not blockers. Focus on compliant storytelling across age-gated platforms, educational content, and community engagement strategies. 2. Build a Community, Not Just a Customer Base The most successful cannabis brands don’t just sell—they create movements. Use community events, user-generated content, and ambassador programs to build loyalty. Tap into local influencers and cultural micro-movements, especially in wellness, music, and food. 3. Own Your Digital Real Estate Due to ad bans on Google, Meta, etc., your website, email list, and SMS database are gold. Invest in SEO, build a brand site with rich content, and offer incentives for signups. Control the funnel and own the customer relationship. 4. Lean Into Education as a Trojan Horse Education reduces stigma, builds trust, and sets your brand up as a thought leader. Host workshops, webinars, and collaborations with medical professionals or chefs. 5. Collaborate With Lifestyle and Cross-Industry Brands Strategic co-branding with wellness, fashion, beverage, or entertainment partners brings your product into new customer circles. Think: cannabis x skincare, cannabis x chefs, or cannabis x music festivals. 6. Treat Budtenders Like Influencers Budtenders are the gatekeepers of the cannabis industry. Invest in budtender education programs, and loyalty tools. Make them love your brand—because they’re the ones recommending. 7. Track Hyper-Local Data, Act Like a National Brand Use POS data, foot traffic trends, and local purchasing behaviors to drive precision marketing. Even if you’re only in one state, be a brand with professional assets, strong storytelling, and data-driven decisions. 8. Focus on Brand Architecture Early Don’t just push one product—build a multi-tiered brand system with room to expand. This means differentiated lines for rec, wellness, luxury, or entry-level. Strong architecture supports future licensing, vertical integration, and national scalability. 9. Go All-In on Experiential Marketing Pop-ups, tasting events, immersive brand lounges, or food pairings can make lasting impression. People remember experiences, not just Instagram ads. 10. Prioritize Diversity and Authenticity Cannabis consumers are diverse—so should your brand voice and team be. Support equity initiatives, hire inclusively, and show up authentically in every market. Customers are savvy; they’ll reward brands that walk the talk.

Zara taught Tata fast fashion. Tata copied the model and outperformed Zara through Zudio. Zara brought fast fashion to India. But it brought it at a premium price point. A ₹3,000-₹4,000 model works for metros. Not for a country where 70% of fashion demand is value-first, and the real market sits in Tier 2 and 3 cities. Zara opened just 27 stores in 14 years. Great brand, zero scale. India didn’t need premium fast fashion. India needed affordable fast fashion. By bringing Zara to India, Tata understood fast fashion from the inside. And used that playbook to create Zudio for the mass market. Trent rebuilt fast fashion for India. Not with premium branding, but with efficient operations. A supply chain that moves fast. Products designed for Indian tastes and budgets. Fresh stock arriving every single week. And an operational engine that makes ₹300-₹600 pricing actually profitable. Zudio now has 545+ stores, adding 3-4 new stores every week. Its revenue is already ₹3,800-4,200 crore almost equal to Zara India’s ₹3,850 crore. Zara sells to India’s top 20 million shoppers. Urban. Premium. Metro-only. Zudio sells to 300-400 million Indians. Tier 2 and 3. Value-driven. Trend-aware. Aspirational. Zara proved the fast-fashion model works. Zudio proved the model works only when it’s rebuilt for India. Zara made fast fashion aspirational. Zudio made fast fashion accessible.

The power of audience segmenting shines with this retail dispensary. Let’s take a look: A single-location cannabis store in an industrial area struggled with low foot traffic and inconsistent SMS marketing. The goal was to increase customer visits and basket sizes. The strategy: 👉 Consistent Messaging i.e. Scheduled SMS twice weekly for midweek deals and weekend promotions. 👉 Segmentation i.e. Focused on recent buyers (last 30 days) and win-back campaigns for lapsed customers. Created category segments for each win-back campaign, further targeting based on preferred purchasing habits. Results: ✅ SMS Database Growth: +372% organically. ✅ Website Traffic: +122%, with new visitors up 90% and returning visitors up 101%. ✅ Social Media Engagement: Impressions grew 607%, followers 205%. Takeaways: ✅ Consistency in communication drives engagement. ✅ Targeted messaging reduces opt-outs and re-engages lapsed customers. ✅ Collaboration between marketing and retail teams is essential for success. Smart, consistent, and personalized SMS campaigns can transform customer engagement and retail performance. For 2025, I encourage you all to look through your contact lists and see how you can make them work more for you. The next big win could come through with just a touch more organization. #casestudy #smsmarketing