Spanish retail major Inditex on Wednesday launched its youth-centric retail brand Bershka, its second-largest globally after Zara, in India, setting the stage for competition with Reliance’s youth-focused retail chain Yousta.
The Bershka launch at the Phoenix Palladium Mall in Lower Parel, Mumbai, comes as Inditex, among the world’s largest fashion retailers with over $37 billion in annual sales, looks to beef up its presence in India. While Zara and Massimo Dutti are part of two joint ventures run by Inditex and Tata group’s Trent in India, Bershka has been launched independently by Inditex in the country.
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Inditex is also looking to get a fourth fashion retail brand called Pull & Bear into India in the future, according to industry sources. According to Trent’s FY24 annual report, Zara (with 23 stores in India) had sales of Rs 2,769 crore in the year. While Massimo Dutti, a premium brand with three stores in India, had sales of Rs 101 crore in FY24.
The Bershka store in Mumbai, according to executives, features both physical checkouts and self-checkout drop-off points, placed alongside fitting rooms to improve customer experience. For online shoppers, Bershka is offering shipping at Rs 290, with free delivery on orders over Rs 2,990 applicable to non-discounted items and all in-store pick-up stores.
Yousta, which was launched in August 2023, on the other hand, has been ramping up its merchandise, including footwear apart from garments at its stores, with plans to add cosmetics and fragrances in the future, sources said. Yousta currently has over 55 stores in 27 cities. It is looking to take this number to over 1,000 stores in the next two to three years, sources said.
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Both brands operate in the value fashion segment, a market pegged at $65 billion, according to retail consultancy Technopak, growing at 12-15% per annum. Garments and accessories such as bags, belts, glasses, caps, etc, for males and females at Bershka are in the Rs 500-2,500 price range. Yousta is even more competitively priced at under Rs 1,000 for men’s and women’s wear. Footwear, bags and inner wear are also priced at under Rs 1,000 a unit. Both brands have stores in the region of 5,000-8,000 sq ft each.
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