Fast Fashion, Delivery Apps Tap India's Next Billion Consumers

"Inside the Zudio outlet on Ballapur Road in Dehradun, a stream of young shoppers drifted into the store on a recent Thursday morning, the glass storefront looming above the chai stalls and biryani counters just opening for business. Racks and hangers across three floors offered ribbed sweaters and light-wash jeans for $10, sneakers for $11 - all made in Bangladesh. Alongside its apparel, the chain sells beauty and personal-care items, much like Zara, but starting at about $1 for a hand cream."

""The same products as H&M and Zara you'll find in Zudio," Aditya Singh, who grew up in the small city tucked into the Himalayan foothills, said as he lingered over a puffer jacket. Zudio's formula - fast fashion priced for India's small cities - has helped the chain expand to more than 800 stores in under a decade. Zara's footprint by contrast has remained confined to major metropolitan areas, with just 22 stores."

"For all its promise of a billion-people market, the discretionary spending boom in the world's most populous nation has been powered by "India 1," only about 150 million affluent, English-speaking Indians in a handful of major cities. Now, with India's economy headed toward becoming the world's fourth largest, a new race is on to court the next billion: A vast, price-conscious yet aspirational consumer in smaller towns, eager for the conveniences and brands once reserved for the urban elite."

Affordable, fast-fashion chains and cheaper personal-care items are reaching young, aspirational shoppers in India's smaller cities. Zudio offers low-priced apparel and beauty goods sourced from Bangladesh and has expanded rapidly to over 800 stores, while global brands remain concentrated in major metros. A large, price-conscious consumer base beyond the affluent urban segment is emerging as incomes rise and connectivity and roads improve. Companies are retooling products, pricing, logistics and content to court this next billion consumers. Even small discretionary purchases such as clothing, delivery snacks and streaming subscriptions are becoming competitive battlegrounds for growth.

Read at The Business of Fashion