- Trent recently crossed Rs 1 lakh crore market cap - It is part of the Tata Group - It is soon set to be part of Nifty 50
Apparel businesses boomed right after Covid, thanks to the pent-up demand. But Trent’s growth rate has remained steady even after the post-Covid wave settled down.
Trent’s Zudio stores have more than quadrupled since September 2020. Zudio’s focus on the mass market has propelled them in recent years.
- Zudio focuses on products below Rs 1,000. - It taps tier-2 and tier-3 cities. (Count.)
- Its operating profit has grown 136 per cent per annum over the previous four years. - It currently contributes to 38 per cent of Trent’s overall operating profit.
- Unlike its rivals’ premiumisation strategy, Zudio is focusing on mass markets. - They work on the aesthetics of each store. (Count.)
- They generally focus on exclusive brand stores. - They have a capex of Rs 800 in FY24.
- A slowdown in demand can hurt Trent’s mass market focus - It trades at a rich P/E multiple of 167 - It plies in a highly competitive industry