India’s Value Fashion Juggernaut Is Just Getting Started

Affordable, trend-led and widely accessible, value fashion has become the heartbeat of India’s apparel industry. Driven by the rising aspirations of price-conscious consumers, deeper digital reach and strong demand for stylish yet affordable clothing, value fashion now holds a dominant 57% share of the country’s US $ 102.8 billion apparel market and has grown at a CAGR of nearly 13% between 2020 and 2025.

For reference, the growth rate of the broader apparel market is around 6%, according to Motilal Oswal Financial Services.

From Trent’s Zudio, Reliance Retail’s Yousta, ABFRL’s Style Up and Shoppers Stop’s InTune to Max Fashion by Landmark Group, Vishal Mega Mart, V Mart, Citykart, V2 Retail and Baazar Style—every major player has sunk its teeth deep into this fast-growing space. These brands are expanding rapidly, especially in Tier-2 and Tier-3 cities, while also strengthening their presence in urban centres to meet the rising demand for affordable yet aspirational fashion.

Retailers like Zudio, Yousta, Style Up, InTune and Max Fashion mainly focus on young, price-conscious, middle-income consumers, particularly Gen Z and millennials in smaller cities. At the same time, they continue to attract a growing customer base in metros. On the other hand, the remaining major value retailers target value-seeking, lower- and middle-income shoppers in Tier-2, Tier-3 and even Tier-4 towns, where affordability and access often take priority over branding.

Value fashion now holds a dominant 57% share of the country’s US $ 102.8 billion apparel market and has grown at a CAGR of nearly 13% between 2020 and 2025.

VALUE RETAILERS IN HYPER-GROWTH MODE 

The numbers speak for themselves. Zudio crossed the US $ 1 billion revenue mark in FY ’25 and now runs 765 stores nationwide. Yousta has over 55 stores across 27 cities and plans to scale to 1,000+ in the next 2–3 years. Style Up currently operates 46 stores, aiming for 250 globally. Meanwhile, InTune, with a revenue of Rs. 192 crore, runs 50+ stores and plans to open 60 more in 2025.

Citykart, too, has been scaling rapidly. Its revenue has grown by 70% over the past two years and is projected to reach Rs. 1,300 crore in FY ’26, up from Rs. 900+ crore in FY ’25. The company also recently raised Rs. 538 crore in Series B funding led by TPG NewQuest and A91 Partners to fuel this growth. It currently operates 127 stores across 89 cities, with a strong presence in states like Uttar Pradesh, Bihar, Delhi, Assam, Odisha, Jharkhand, Arunachal Pradesh and Chhattisgarh. By the end of this fiscal year, it plans to reach 150 stores and add at least 15 more across 10 new cities next year.

Whereas, V2 Retail reported a 61.7% revenue increase in FY ’25, reaching Rs. 1,884 crore from Rs. 1,165 crore in FY ’24. The brand operates over 150 stores across 112 cities and aims to expand to 250.

With a huge presence in Eastern India, Baazar Style reported FY ’25 revenue of Rs. 1,343 crore, up by 38% from Rs. 972 crore in FY ’24. The company targets people with income less than 4 lakh per annum. The regional retailer also unveiled its IPO of Rs. 834 crore last year, raising Rs. 250 crore from anchor investors before its launch. It has a total of 222+ stores in more than 9 states, with its core markets in West Bengal, Odisha and Bihar. Rekha Jhunjhunwala, wife of late stock trader and investor Rakesh Jhunjhunwala, also has a stake in the company.

Similarly, Vishal Mega Mart operates 645 stores across 414 cities in India. The retail chain reported sales of Rs. 8,900 crore in FY ’24. It also launched an IPO of Rs. 8,000 crore last year where it secured bids over 27x the amount from both retail and institutional investors.

For FY ’25, V-Mart posted revenue of Rs. 3,254 crore and a net profit of Rs. 46 crore. The company marked the opening of its 500th store and plans to add 50–60 stores annually.

Additionally, Max Fashion operates 510+ stores across 200 Indian cities.

MAKING EVERY SQUARE FOOT COUNT

As the sector matures, retailers are under pressure to optimise retail efficiency, which has made sales per square foot (SPSF) a key benchmark for performance.

At the top of the pack, Zudio generates between Rs. 16,300 to Rs. 18,000 per sq. ft. from stores that average 6,000–8,000 sq. ft. This is closely followed by InTune, with Rs. 11,000 per sq. ft. on relatively compact 5,000 sq. ft. stores— indicating fast inventory turnover curated assortment that clicks with their Gen Z and millennial audience.

V-Mart, Vishal Mega Mart, V2 Retail and Baazar Style, all deeply rooted in Tier-2, Tier-3 and Tier-4 cities, highlight how geography and consumer demographics shape store productivity. Their revenue per sq. ft. may appear lower than metro-focused peers like Zudio or InTune, but they reflect the unique dynamics of smaller markets where rental costs are lower, ticket sizes tend to be smaller and the focus is more on mass-market affordability than on driving high-value sales.

For instance, V-Mart operates stores averaging 8,000 sq. ft., targeting revenue of Rs. 8,200 per sq. ft., while Vishal Mega Mart runs much larger stores—about 18,000 sq. ft. on an average—generating Rs. 8,100 per sq. ft. in FY ’24.

V2 Retail, with a total retail space of approximately 17.22 lakh sq. ft., reports revenue per sq. ft. of Rs. 1,069, whereas Baazar Style stands at the lower end of the spectrum, with a Q4 FY ’25 sales per sq. ft. of Rs. 679 and a full-year average of Rs. 721, though this marked a 12% year-on-year improvement.

The lower per-square-foot revenue for Baazar Style is largely a function of its concentrated presence across 9 states, primarily in eastern India: West Bengal, Odisha, Bihar, Assam, Jharkhand, Andhra Pradesh, Uttar Pradesh, Tripura and Chhattisgarh. As of March 31, 2025, the company’s total rental area stood at 19.21 lakh sq. ft., up by 31% year-on-year, indicating rapid expansion across price-sensitive markets. In such regions, discretionary spending is limited, but low rental overheads and high store traffic allow brands like Baazar Style to operate profitably despite modest per-square-foot sales.

Max Fashion, by comparison, operates larger outlets averaging 22,000 sq. ft., with sales per sq. ft. ranging between Rs. 6,818 and Rs. 8,182. While its per-square-foot revenue places it in the mid-range, its performance is shaped by regional strengths. The brand carries a higher number of SKUs in the south and west than in the north and east. Being headquartered in Bengaluru, Max has naturally expanded more aggressively in southern states such as Karnataka, Tamil Nadu and Andhra Pradesh, where most of its stores are currently located.

Citykart’s performance data per square foot isn’t disclosed, but with store sizes between 6,000–12,000 sq. ft. and heavy investment in expansion across smaller cities, it is likely to fall in the mid- to lower-efficiency bracket, aligned with a mass-market positioning.

Retailers like Yousta and Style Up, although early in their journey, are focusing on large-format stores (5,000–8,000 sq. ft.), but haven’t yet released public sales-per-sq.-ft. data. Given their aggressive expansion plans and focus on younger consumers, they may eventually land in the same productivity band as Zudio or InTune, if merchandising and pricing are executed well.

Unlike Reliance Trends, which caters to a broad demographic across age groups and income segments, Yousta is sharply focused on Gen Z shoppers.

In essence, players operating in metros and Tier-1 cities need to command higher efficiency to cover higher rents. Those rooted in Bharat can afford lower revenue densities, thanks to reduced overheads and a volume-driven model.

REDEFINING THE ‘VALUE’ IN VALUE FASHION

The main consumers of value fashion are defined as ‘Value Hunters’, who are Gen Z and young millennials with household incomes of less than Rs. 5 lakh per annum across all cities, according to Redseer.

To meet the needs of these price-conscious yet style-aware shoppers, value fashion retailers focus on offering trend-led apparel at highly accessible price points—typically between Rs. 199 and Rs. 999.

However, ‘value’ is no longer defined by low prices alone. Experts say ‘Value’ means giving customers fashion that resonates with their lifestyle, without compromising on quality. Consumers are constantly exposed to global trends through social media, influencers and digital content. They have an insatiable appetite for newness and want to experiment with the latest styles all the time.

“If a brand offers extremely low prices but isn’t trend-relevant, it won’t succeed. And if it’s fashionable but unaffordable, it defeats the purpose of value fashion. We merge affordability with trend relevance and quality, making sure our consumers never have to choose between being stylish and being budget-conscious,” a Yousta spokesperson noted.

Yousta drops new collections weekly, ensuring constant freshness and relevance. Yousta’s stores also provide a tech-enabled shopping experience, featuring easy self-checkout counters, free wi-fi and charging stations. They also encourage shoppers to donate pre-loved clothing in-store–supporting both sustainability and community welfare.

Through their stores and on ajio.com, they sell to 98% of India’s pincodes. “At Citykart, it’s not just about low prices— it’s about offering products that feel aspirational yet accessible to our customers in smaller towns,” a spokesperson said.

They also curate their assortment based on local preferences, festivals and micro-trends that differ from city to city.

In terms of sales too, over 70% of Citykart’s revenue comes from Tier- 2, Tier-3 and Tier-4 cities. Towns like Gorakhpur, Muzaffarpur, Bareilly and Hajipur have emerged as high-performing markets. The key reasons are a combination of rising aspirations, better disposable incomes and limited access to organised fashion retail in these areas.

“For me, value fashion is all about delivering the right product, at the right price, with the right relevance to the customer. While price is a key factor, today’s consumers aren’t just looking for cheap options—they demand quality and relevance that align with their lifestyle,” stated Jayesh Kothari, President Buying and Merchandising, V2 Retail.

The main consumers of value fashion are defined as ‘Value Hunters’, who are Gen Z and young millennials with household incomes of less than Rs. 5 lakh per annum across all cities.

The main consumers of value fashion are defined as ‘Value Hunters’, who are Gen Z and young millennials with household incomes of less than Rs. 5 lakh per annum across all cities.

The focus of V2 Retail is on hyperlocal fashion intelligence. “While big brands standardise collections across markets, we customise our designs based on regional preferences—whether it’s festivewear in Punjab, pastel shades in South India or bold prints in Gujarat,” he added.

Jayesh also pointed out that their quick response to trends helps them stay ahead. “For example, when a viral fashion moment hits, we can launch a collection within weeks.” Another shift in the value retail market is the preference for ready-to-style outfits – customers are increasingly picking complete looks rather than just individual pieces. There’s also a rise in fashion-conscious male shoppers, especially from Tier-3 towns.

At the same time, experts emphasised that a close eye needs to be kept on Gen Alpha—those born after 2010–the next wave of highly connected, style-aware consumers who are growing up with even greater digital influence and global exposure. As they come of age, their expectations will be even more personalised, immersive and tech-driven.

There is also foreseeable explosive growth in Tier-4 markets, with consumers expecting global trends to be delivered locally, fast and affordably. These cities include the likes of Bettiah, Darbhanga, Muzaffarpur, Motihari, Katihar, Purnia, Sitamarthi, Hajipur, Forbesganj, Chhatarpur, Dumka, Hazaribagh, Barpeta, Dibhrugarh, Golpara, Rangia, Silchar, Ambikapur, Agartala and Cooch Behar.

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