Inditex is set to introduce both Bershka and Zara Home to the Indian market this year. While Zara has been present since 2010 and Massimo Dutti for eight years, Bershka’s entry will challenge Reliance Retail’s Yousta, targeting a younger demographic.
India, with its significant population, presents a lucrative market for fashion brands, especially with the younger generation favoring Western-style apparel. Fast fashion giants like Zara and H&M quickly gained popularity upon their entry into the country.
Bershka’s target audience primarily comprises teens to mid-20s, slightly younger than Zara’s demographic, catering to 20-40-year-old fashion-conscious consumers. The product range of Bershka includes a higher proportion of knits and casual wear compared to Zara, aligning with the lifestyle of its target customers.
Devangshu Dutta, founder of Third Eyesight, highlights the importance of Bershka hitting the right price points to attract Indian consumers, considering the competition from domestic brands like Zudio and Yousta, which offer similar styles at competitive prices.
The value fashion segment, valued at ₹2.5 lakh crore, constitutes 57% of the total apparel market in India and is witnessing rapid growth. This growth, driven by factors such as demographics, rising incomes, and consumer aspirations, has attracted major players to venture into a market previously dominated by local and regional operators.
Zudio, launched in 2016-17 as a part of the Tata Group’s Trent, has experienced significant expansion, boasting nearly 400 standalone stores. Its success, attributed to competitively priced products with an average selling price of ₹300, has spurred the entry of national retailers like Yousta, Style-Up, and InTune, targeting the affordable youth clothing segment.
