Are you a fashion enthusiast looking to start a retail business in India? Then, Zudio, a popular fashion brand owned by the Tata group, offers a great opportunity for you.
But do you know what you need to learn to become a Zudio franchisee?
Don’t worry! Let us walk you through the entire process of becoming a franchisee and the total Zudio franchise cost in India.
So, are you ready to step into the fashion industry and explore new possibilities for your business?
Why is the Zudio Franchise in India Popular?
Indian youth have always been into new fashion trends. Keeping that in mind, the Tata group launched Zudio in 2016 in big cities like Delhi, Bangalore, and Mumbai to fulfill the demand for trendy outfits at affordable prices.
Zudio quickly established itself in the market and consumers’ hearts due to its unique pricing policy.
Many factors add to the brand’s popularity in India. Zudio offers products starting from only Rs. 199, which attracts people who prefer budget-friendly shopping. Also, Zudio provides every fashion article under Rs. 1000, making it accessible for even middle-class customers.
Moreover, buyers can get a wide range of clothing and other fashion accessories for men, women, and children under the same roof.
Additionally, the Tata Group, the parent brand of Zudio, has a great reputation among Indians, which has built trust for its products among people beforehand.
Why invest in the Zudio Store Franchise?
Being a franchisee of Zudio is a lucrative business idea in India for many reasons.
- Tata Group is a well-known and highly established brand worldwide. Therefore, Zudio, being its subsidiary, is also a trustworthy brand. Investing in a well-liked and approved business is like the icing on the cake for a businessman.
- Zudio focuses on providing affordable, quality, and stylish clothing and other fashion items to its customers. So, Zudio stores are famous shopping sites for Indian consumers.
- As demand for fashion articles continues to increase among the Indian middle class and the young generation, putting capital in a fashion brand is, of course, a profitable business idea.
- Another powerful reason to invest in a Zudio store is that it offers strong support for its franchisees by hiring staff and giving them the required training. Zudio is responsible for the marketing purposes itself. Therefore, the franchisees need not worry about advertising and promotional operations. With its approved business model, Zudio is running 250+ stores in various Indian cities. Hence, opening a Zudio store is one of the best franchise businesses in India.
Breakdown of Zudio Franchise Cost in India
The Zudio franchise cost in India depends on the store’s location, size, and inventory. For example, setting up a fashion outlet in a metro city is way more expensive than in a small city. Here are all the expenses involved in opening a Zudio store.
Foundational Investment
The initial one-time cost for setting up a Zudio store includes various expenses; therefore, it may cost 1 to 2 crores rupees.
- This total cost includes a franchise fee, which is a one-time payment of about ₹10-15 lakhs.
- Then, a refundable amount of ₹20-30 lakhs has to be deposited as a security fee.
- To set up a selling store, the expenses are from about ₹30-80 lakhs, including the interiors, furniture, and other required equipment.
- The initial investment to set up a stock inventory may cost from about ₹30 to 50 lakhs.
- Legal registration, stamp duty charges, and other permits may vary from ₹10-20 lakhs.
- Lastly, an additional amount of about ₹40 lakhs may be needed for advertising and staff training purposes.
Other Ongoing Expenses
- A space of about 6,000 to 8,000 square feet is required to open a Zudio store that a franchisee can lease or rent. This may range from ₹5 lakhs to ₹15 lakhs per month.
- Monthly salaries of staff members typically range from ₹3 to ₹6 lakhs.
- Promotions and advertising for the newly opened store may cost ₹50,000 to ₹1 lakh per month.
- Other utility and maintenance expenses may vary ₹1-2 lakhs per month.
How to Apply to Become a Zudio Store Franchisee?
Here’s the step-by-step guide to apply for a Zudio store’s franchise.
Step 1: Meeting the eligibility conditions
There is a special eligibility criterion to become a Zudio franchisee. The applicant must fulfill the following conditions to apply for the franchise.
- The person must have a net worth of about three crores, as the franchise requires an initial investment of about ₹1.5 crore to ₹3 crore.
- They must have a large space where they can set up the store. It would be better if the store were located in an area with a high volume of visitors, such as near busy markets or shopping malls.
- People with prior experience in retail can have benefits running the business. They can easily understand the store’s sales operations and deal with customers. However, it is not mandatory to apply for the franchise.
Step 2: Collecting the Mandatory Documents
Before submitting the application form, the franchisees must gather the required personal and business documents. These are
- Permanent Account Number (PAN Card), as the tax and identity proof
- Unique Identification Document (Aadhar Card) as an identity document in India
- Valid proof of address. This can be a voter ID, a rent agreement, or utility bills.
- Certificate of GST registration for the business
- Registration certification or business licence for the company
- Insurance documents and other permits, like fire safety and establishment registration for the store
Step 3: Submit the Franchise Form to become a Franchisee
- Visit tatazudio.ind.in and select Zudio Franchise from the panel.
- Fill out the contact information asked in the form and submit it.
- For any other questions regarding the franchise and business with Zudio, applicants can contact franchise@zudio.ind.in
Step 4: Submit the Required Documents
After submitting the franchisee form, the Zudio officials contact the interested people to submit their personal and business documents. Then, the Zudio team evaluates the papers and invites the shortlisted candidates for further business operations.
Step 5: Approval from Zudio and Signing Agreement
Zudio officials inspect the selected location and area. Franchisees can also get assistance in choosing an ideal store location and getting approval for their business.
After getting the acceptance from Zudio, sign the franchise agreement with Zudio after reviewing the outlined terms and conditions carefully.
Step 6: Setting up the Store and Hiring Staff
Zudio helps its business partners in opening the sales store and hiring the staff. After providing the essential sales training to the working force, Zudio itself guides or may take over the daily sales operations of the store.
Step 7: Launch and Promote the Zudio Store
Finally, advertise the newly opened Zudio fashion store through social media platforms or by collaborating with local influencers.
Franchisees can hold an opening event to lure the local customers. Additionally, they can offer special discounts and gift vouchers to the visitors on the launch day.
⭐For better launch hype and business promotion, you can also contact New Traffic Tail, a leading digital marketing agency with an expert and experienced team.
What is the Profit of Having the Zudio Store?
Due to Zudio’s unique selling proposition, it has a great customer base. Therefore, franchisees can earn high profits from the Zudio store franchise.
In terms of the numbers, a Zudio store has an approximate sales of ₹70 lakh to 1 crore per month. Franchisees earn 15% to 20% of the profit made by the store’s sales. Also, they have 16% shares in the total revenue of the store.
Hence, an investor can have a return on investment in about two to three years after the Zudio store setup.
How Can Investors Make the Store More Profitable?
- The store’s location plays a great role in the increased sales. Therefore, choose the area strategically to have a large footfall and enhanced product sales.
- Managing the store’s inventory stock properly and according to the trends attracts more fashion enthusiasts.
- Analyze what customers are demanding and meet their needs in a timely manner.
- Collect feedback from consumers and provide them with the best customer service.
- Use social media platforms to build hype for the Zudio store franchise in the local audience.
- Host promotional events and offer discounts to increase customer footfall.
Zudio Store: Where Fashion Meets Profit
Zudio has a successful business model backed up by a strong brand, the Tata group. Therefore, applying for a Zudio store’s franchise is a rewarding investment. The total Zudio franchise cost in India is about ₹1 crore to ₹3 crores. However, the expenses depend on various factors, including the area, city, and store size.
In this blog, we have provided a comprehensive breakdown of the investment. Now, it is up to you to take the first step and enter the fashion world by becoming a Zudio franchisee.
Best wishes for your future endeavors in the fashion retail business!
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FAQs
Q1: Do franchisees get any kind of support from Zudio?
Yes, Zudio offers great assistance to franchisees by hiring staff and providing them with complete sales training. Thereafter, Zudio offers guidance regarding all the daily operations of the store.
Q2: Is it easy to become a Zudio franchisee?
You must have an investment capacity of about ₹1 to ₹3 crores to apply for the Zudio store franchise. Persons with prior experience in the retail business can have an advantage in opening a Zudio store.
Q3: Is having a Zudio store a money-making business idea?
With a unique selling price policy, Zudio is definitely a great business idea for people who want to join the fashion world. It offers branded fashion products at affordable prices, making it loved by a larger audience.
