Isha Ambani led Reliance Retail has come up with its own affordable youth-focused fashion brand called Yousta in August 2023. Within a span of a year, it has expanded across 27 cities in India and runs 55 stores. It aims to open around 200-250 stores in the next two years. Yousta is set to offer trendy clothing for youngsters as the name of the brand itself suggests “you” and “sta” or star. The budget-friendly store is committed to presenting items that are priced below Rs. 999, besides updating itself on a weekly basis with a fashion collection called “Starring Now.”
It has reportedly roped in support of the Chinese fast-fashion retail, Shein, to outcompete its chief rival, Zudio. Owing to the Indo-China border skirmishes in 2020, the Indian Government banned several Chinese apps, including Shein, which gained popularity among youngsters and was known to offer stylish and affordable fashion clothing. Therefore, the help from the Chinese firm seems to benefit Yousta in attaining its goal of outcompeting its rival.
Its chief competitor, whose success motivated the calculated step by Reliance Retail in the first place, operates about 559 stores to date and has gained immense popularity among Indian youths. Zudio opened its first store on Commercial Street in Bengaluru. Since then it has expanded to include womenswear, kidswear, and accessories and has gone international with its first store abroad in Dubai in September 2024.Zudio also runs its own affordable line of cosmetics, besides having its own footwear collection. In addition to the expanding store network, Yousta, following Zudio, has the ambition to expand its product portfolio beyond apparel to include cosmetics and accessories, besides already running its footwear collection successfully.
Stylish reels, but also stylish in real. 😎 Visit our newly launching stores for exploring the latest styles. ✨🛍#yousta #youabsolutestar #fashion #genz #style #duality #kaafiyoustahai pic.twitter.com/UaEYkkSQSH
— yousta (@YoustaFashion) November 16, 2024Yousta vs. Zudio
As both the brands target similar demographics and prioritize affordability, however, Reliance’s Scale and Reach gives Yousta a head start. Reliance Retail, the parent company of Yousta, has a robust network of stores across India and it has experience in running India’s largest fashion retail chain, Trends. Although Trends caters to different demographics in terms of fashion-retail, it has valuable insights to offer. Moreover, Trends, which now celebrates almost two decades of success since its launch in 2006, has become a household name and earned the loyalty of thousands of Indians. Reliance can leverage its existing reputation and promote Yousta as its innovative, affordable line. This can contribute to a significant advantage in terms of distribution and customer reach.
However, Trent’s Zudio has already built a loyal customer base and has been successful in enhancing the brand salience. Since its launch in 2016, it has become a hit among fashion-conscious youths of the country. Zudio has successfully implemented a fast-fashion approach as it refreshes its inventory every 15 days. The brand’s weekly updates can pose a threat to Zudio on this ground.
As competitive pricing remains a priority, further competition can benefit consumers on a large scale despite the trend of fast fashion being detrimental to our environment. Here again, Reliance’s ability to leverage its extensive supply chain and manufacturing capabilities can potentially offer better deals and a wider range of products. In this aspect, Zudio needs to up its game. Reliance has a proven track record of successful marketing campaigns. Investing heavily in promoting Yousta could increase its market share in no time. Celebrity endorsement and collaboration with influencers, among others, can help Yousta reach its desired objectives in a short span of time.
Now, Tata Group, Zudio’s parent company, is not much behind. It has a strong presence in various industries, be it automobiles or fashion. Moreover, Ratan Tata’s visionary leadership combined with philanthropic service to mankind has accelerated the reputation of Tata Group worldwide. A larger consumer base in India is emotionally attached to the brand, which offers it a unique position and a loyalty unknown to any other industry conglomerate. Westside is still a popular choice among Indian consumers looking for quality and fashion. Leveraging on its prevalent success and the loyalty of the existing customer base, it can pose itself as an invincible player in the market.
Strategies Employed by Yousta
It is heavily invested in expanding its brand awareness by relying on celebrity endorsement. Its launch in Prayagraj, Uttar Pradesh, was attended by Bollywood star Rajkumar Rao. Another of its launch events in Pune was marked by the gracious presence of Bollywood Actress Shraddha Kapoor. For its launch in Amaravati, it relied on the South superstar Mahesh Babu’s presence. They have also roped in Kiara Advani as the brand ambassador for Yousta. In addition to that, given its competitive pricing range and affordability, it has already started expanding in Tier 2 and Tier 3 cities where such products are hugely in demand.
However, the outcome of the competition between Reliance Brand and Zudio will depend on a multitude of factors, including consumer preferences, market trends, and the strategies employed by both companies. Yousta, as it seems, has huge potential in terms of growth; however, whether it can outcompete its chief rival, Zudio, is a question that time will answer better than us.
FAQ
1. What is the key difference between Reliance Yousta and Zudio?
Both brands target similar demographics and prioritize affordability. However, Reliance’s scale and reach, backed by its extensive network of stores, give Yousta a significant advantage in terms of distribution and customer reach. Zudio, on the other hand, has a strong brand reputation and a loyal customer base built over time.
2. How is Reliance Yousta leveraging its parent company’s resources?
Reliance Yousta is leveraging its parent company’s resources in several ways, including:
Reliance Retail’s vast network of stores provides Yousta with a wide reach and distribution channels.
Reliance Retail’s experience in operating India’s largest fashion retail chain, Trends, offers valuable insights and expertise.
Reliance’s strong brand image and existing customer relationships can contribute to Yousta’s success.
3. What strategies is Yousta employing to compete with Zudio?
Yousta is employing several strategies to compete with Zudio, such as, Celebrity endorsements and influencer collaboration, expansion into Tier 2 and Tier 3 cities, weekly product updates among others.
4. What are the potential challenges for Yousta in its competition with Zudio?
Despite its advantages, Yousta faces potential challenges. Zudio’s loyal customer base which it has established a strong customer base over time is one of them. Besides, the fast-fashion industry can be detrimental to the environment, and both brands need to balance their offerings with sustainability considerations.
5. How can Zudio leveraging its parent company’s resources?
Zudio can leverage its parent company’s resources by relying on the Tata Group’s strong brand reputation and customer loyalty. The Tata Group’s presence in various industries can provide Zudio with resources and support.
6. What is the future outlook for the competition between Yousta and Zudio?
The outcome of the competition between Yousta and Zudio will depend on various factors, including consumer preferences, market trends, and the strategies employed by both companies. While Yousta has significant potential, Zudio’s established presence and loyal customer base pose a strong challenge. Ultimately, time will tell which brand will emerge as the dominant player in the affordable fashion market.
