Inditex, the Spanish fashion giant, will introduce its youth-oriented clothing label, Bershka, and home decor brand, Zara Home, to the Indian market this year.
In its latest annual report, it said, “Bershka will open its first store in Mumbai Palladium, and Zara Home will open in Bangalore.”
Inditex introduced its fast-fashion label Zara in 2010 and debuted the premium clothing brand Massimo Dutti eight years prior. Now, with its latest addition, Bershka, Inditex ventures into direct competition with Reliance Retail‘s Yousta, both targeting the younger consumer segment.
As the world’s second most populous country, India presents an enticing market for apparel brands, particularly as younger demographics increasingly adopt Western-style clothing. Fast-fashion giants like Zara and H&M quickly soared to success upon entering the Indian market.
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Experts noted that Bershka primarily caters to consumers in their teens to mid-20s, slightly younger than Zara’s target demographic, which focuses on fashion-forward customers aged 20 to 40.
Devangshu Dutta, founder of retail consulting firm Third Eyesight, explained, “The product assortment differs, with a higher emphasis on knits, fewer dresses, and an overall more casual vibe compared to Zara, aligning with the lifestyles of the target customer group. Hence, it’s unlikely to significantly cannibalize Zara’s market share, although some younger Zara customers may shift some of their purchases to Bershka.”
“The important question, given competition from local brands like Zudio and Yousta, is whether Bershka can reach the price points desired by young Indian fashion consumers,” he continued. Will cheaper prices outweigh the distinctive stylistic options and allure of the European brand, which might draw sizable crowds and guarantee the brand’s survival?”
As per a recent Motilal Oswal report, the value fashion segment, valued at INR 2.5 lakh crore, constitutes 57% of the overall apparel market and stands out as one of the largest and most rapidly expanding segments. With significant potential lying untapped beyond metropolitan and tier-1 cities, propelled by favorable demographics, rising incomes, and heightened consumer aspirations, numerous major players have ventured into a market once predominantly ruled by regional and local operators.
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Since its establishment in 2016-17, Zudio has experienced significant growth, boasting nearly 400 standalone stores. Its success has outstripped that of many apparel brands, largely attributed to its competitively priced products, with an average selling price of INR 300. Riding on the coattails of Zudio’s triumph, the segment has witnessed the entry of national retailers into the affordable youth clothing sector, including Yousta by Reliance Retail, Style-Up by Aditya Birla Fashion and Retail, and Shoppers Stop’s InTune.