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Go Zero founder blames ‘downfall’ of Zudio on rapid expansion, low quality: ‘Fabric pochha ban jata hai’
Kiran Shah, the founder and CEO of Go Zero Ice Creams, has offered his opinion on the “Shocking Downfall of Zudio” in an Instagram video.
Kiran Shah, the founder and CEO of Go Zero Ice Creams, has offered his opinion on the “Shocking Downfall of Zudio” in an Instagram video. In the clip, Shah claimed that Zudio’s rapid growth is becoming its own biggest obstacle, outlining two main problems resulting from Tata's aggressive expansion to nearly 1,000 stores.
“Zudio ka sabse bada dushman aur koi nahi hai, khud Zudio ki hi growth hai. Tata ne aggressive expansion karke lagbhag 1,000 Zudio stores open toh kar diye. Aur yeh sunne mein ek success story bhi lagti hai, par exactly yahi se shuru hoti hai inki do sabse badi problems,” he said, claiming that Tata Group’s rapid expansion of its low-cost fashion brand has resulted in declining sales.
Brand fatigue
Shah claimed that Zudio’s rapid expansion across Tier 1 and Tier 2 Indian cities has resulted in brand fatigue and loss of exclusivity. Every other person, he said, can be seen wearing the same ₹500 t-shirt from Zudio.
Since Gen Z highly values individuality and exclusivity, seeing identical designs everywhere makes the brand lose its trendiness and feel "uncool."
Low quality clothes
Secondly, he blamed the low quality of clothes being sold at Zudio for the brand losing its customer base.
“Audience ko ab samajh aa chuka hai ki teen ya char wash ke baad inka fabric pochha ban jata hai (The audience has understood that Zudio fabric becomes a rag after just three to four washes),” he said.
Competitors like Reliance's Yousta and Shoppers Stop's Intune are capitalizing on this flaw by offering fresh designs at similar, affordable price points, said the founder of Go Zero.
Declining metrics
Shah concluded that due to these challenges, Zudio's same-store growth and per-square-foot revenue are beginning to drop. Having saturated metro cities, Zudio is now expanding into Tier 3 and Tier 4 cities, where the Tata brand name still holds significant trust and high status.
Tata Group's retail division, Trent Limited, launched Zudio in 2016. It began with its first standalone store on Commercial Street in Bengaluru after earlier concept testing in select Star Bazaar outlets.
Driven by Zudio's aggressive retail footprint expansion and strong earnings growth, Trent stock surged dramatically, reaching an all-time high of approximately ₹5,500 in 2024. Today, it trades at around ₹3,000 per share.
(Also read: Trent loses $20-billion market cap since 2024 peak as ‘Zudio’ rally wears off)
