The Tata Group has been operating Zara”s (Inditex) stores in India as their partner since almost last one decade. The Indian multinational conglomerate operates a large portfolio of brands across lifestyle, technology, finance and food, and is now reportedly building its own apparel empire that will offer clothing at half the price of Zara’s cost but as trendy as Zara.
Business Times reported that Tata Group’s retail arm, Trent Ltd, plans to open 40 stores of its flagship chain, Westside, across India each year, as well as hundreds of its mass market Zudio outlets where nothing costs more than $15, said chairman Noel Tata in an interview in Mumbai. The target audience: a consumer population that is newly trend-conscious and globalized, but whose low average incomes means that clothing from Zara itself is still mostly out of reach.
“The middle class is growing, incomes have grown, Indians are traveling more and they have more money to spend,” Tata said. “Now that we’ve built this capability and this model that’s working so well, it’s time to grow faster.” He added.
Trent has a local supply chain that can deliver styles to customers in just 12 days. Sources report that the company is hiring employees to forecast trends to complement this supply chain and ultimately introduce 300 new styles to stores each week.
Trent, part of the $111 billion salt-to-software Tata conglomerate, is hoping its quick and responsive supply chain will help it become as ubiquitous in Asia’s third-largest economy as Zara is in the West. But it’ll need to fend off competition from both local brick-and-mortar stores as well as e-commerce giants to do so.
A report by the World Economic Forum said that India’s total household spending will quadruple from US $ 1.5 trillion currently to US $ 6 trillion by 2030.