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Jayant Mundhra
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Dexter Capital Advisors • 4d
In FY25, every 40 hours, ZUDIO opened a new store somewhere in India 🙌🙌 And, the way they see it is that it is a marketing strategy executed in brick and mortar, at a scale that is simply breathtaking. - In a world obsessed with CAC, LTV, and ROAS, Zudio's primary marketing metric is 'stores opened' - Each new location, an investment of Rs 3-4 crore in capex, inventory, and deposits, becomes its most powerful and permanent form of advertising It builds brand visibility not through fleeting digital impressions, but through a constant, physical presence in the consumer's daily life. .. This is, to some extent, a masterclass in micro-market penetration. The company entered 67 completely new cities in the last fiscal year, while simultaneously strengthening its presence in 56 existing ones. They are methodically building a dense network, store by store, making the brand inescapable in their chosen territories. .. And these aren't small kiosks. The average store size is growing, up 13% YoY to an impressive 10.3k sq ft. These large-format stores are designed to be destinations, effectively showcasing their wide range of offerings for men, women, and children, and capturing the entire family's wallet. - While competitors pour millions into ad campaigns and brand ambassadors to attract customers, Zudio invests in assets - These stores don't just sell products - they generate organic footfall, create local employment, and act as giant billboards that reinforce the brand's promise of accessibility .. With a clear path of reaching some 1.3-1.6k stores by FY28 (~780 right now), Zudio is effectively building its own distribution and advertising network in one go. It is a bold, capital-intensive strategy that demonstrates an unwavering belief in the power of physical retail. And that’s quite something, if you think of a long-term play. Nice, right?
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