Zudio's Success Story: Fortune at the Bottom of the Pyramid

ABSTRACT Most fashion brands have focused their offerings on the elites or the middle to upper‐middle‐class segments. This study investigates how a value‐fashion brand in India, Zudio, took the road less traveled and found fortune at the bottom of the pyramid, where most brands have either struggled or never entered at all. This case study followed 9 years of research data on Zudio's growth while specifically demonstrating competitive dynamics against key competitors. Such analysis relied on relevant market research reports, published articles, insights into executives' interviews, and their statements in the public domain. Eventually, it also manifested an appropriate business model of Zudio and key managerial lessons for business success in the BOP segment. The findings suggest the importance of key business practices of value creation (e.g., addressing demand in the underpenetrated market and offerings with affordable pricing), value capture (e.g., quick inventory turnover for high sales, FOCO model for extensive customer reach), and value delivery (e.g., accessible fashion with affordability of high‐quality offerings supplemented with agile inventory). Hence, Zudio's story contributes insights into unique business practices in BOP segments with a successful working business model. It makes a case for other potential businesses to explore and find their fortune in this underserved yet highly fruitful market. Beyond the domestic context, the study also offers lessons for international business managers on how firms from emerging markets design scalable models that could be replicated across other BOP segments internationally.