VIP Clothing joined hands with Zepto to accelerate digital retail footprint

VIP Clothing Limited, one of India’s most recognisable innerwear brands, is sharpening its digital commerce strategy through a new partnership with Zepto, the country’s fastest-scaling quick-commerce platform. The move brings VIP’s flagship brands—Frenchie, Feelings, and VIP—onto a platform that promises delivery within minutes, aiming to transform how innerwear is purchased and consumed in urban India.

This collaboration marks an extension of VIP Clothing Limited’s earlier foray into online quick-commerce retail through Swiggy Instamart and highlights the company’s commitment to meeting consumers wherever they are—on-demand, app-first, and convenience-driven. With Zepto’s robust distribution and delivery infrastructure, VIP’s offerings are expected to become instantly accessible across cities like Mumbai, Bengaluru, Delhi NCR, and Chennai.

Why are legacy innerwear brands turning to quick-commerce?

The quick-commerce model has become more than a grocery play. In recent years, the sector has expanded to include categories once thought resistant to impulse purchases—apparel, cosmetics, and now innerwear. Brands like VIP Clothing Limited, which have built trust over decades in physical retail, are adapting to a generation of consumers who expect everything to be just a few taps away.

Zepto’s promise of 10-minute delivery resonates especially with Gen Z and millennials—urban consumers who value time and convenience as much as product quality. By integrating its popular innerwear lines onto Zepto’s delivery platform, VIP Clothing Limited is seizing the opportunity to position itself in high-velocity digital retail while retaining its brand equity.

For consumers, this means premium innerwear becomes a last-minute solution, not just a planned purchase. For VIP Clothing Limited, this shift helps reduce friction in the buying journey and enhances repeat-purchase potential through sheer convenience.

What does this mean for customer access to VIP Clothing Limited products?

With innerwear now available on Zepto, the customer journey becomes dramatically faster and more flexible. The days of shopping exclusively in-store for such essentials are gradually being replaced by the immediacy of mobile commerce. This collaboration simplifies that access even further.

By targeting urban micro-markets with high internet penetration and established delivery infrastructure, VIP Clothing Limited ensures its products are now available to millions within minutes. This strategy deepens brand connection with younger, app-savvy consumers who tend to prefer brands that match their fast-paced lives.

At the same time, this expansion into hyperlocal e-commerce allows VIP to reinforce its omnichannel strategy—one that now spans traditional outlets, modern trade, digital marketplaces, and quick-commerce delivery platforms.

How does this deal fit into VIP Clothing Limited’s broader digital retail strategy?

This partnership is not a one-off retail experiment. It is part of a calculated pivot toward building a comprehensive, multi-platform retail network that balances legacy operations with modern delivery channels. VIP Clothing Limited’s Chairman and Managing Director, Mr. Sunil J. Pathare, described the move as integral to the brand’s long-term vision of being accessible “whenever and wherever” customers need it.

This vision is increasingly rooted in real-time delivery models. Zepto’s 10-minute fulfilment capabilities—built on a network of micro-warehouses and data-driven logistics—offer the perfect complement to VIP’s aspirations in urban e-commerce. By leveraging Zepto’s reach, the brand bypasses logistical constraints traditionally associated with innerwear purchases.

Following its launch on Swiggy Instamart, VIP’s presence on Zepto gives the company access to an entirely different pool of app-first consumers. This enhances brand visibility, strengthens purchase frequency, and helps optimise last-mile economics in densely populated areas.

How is the market responding to VIP Clothing Limited’s digital push?

While the retail partnership may energise the brand’s visibility, investor reaction has been mixed, reflecting broader concerns around profitability and growth. As of April 11, 2025, VIP Clothing Limited (NSE: VIPCLOTHNG) traded at ₹38.17, reflecting a daily gain of over 11%, but still down 0.32% over a 12-month period. The stock has seen significant volatility, fluctuating between a 52-week high of ₹53.20 and a low of ₹28.00.

Despite the short-term rally likely triggered by the Zepto news, sentiment remains cautious. The company has posted negative earnings, with a trailing twelve-month EPS of -₹0.48. Its ROCE and debt-to-EBITDA ratios have raised red flags about operational efficiency and financial stability. The stock’s high beta of 1.96 further signals volatility—something investors may weigh heavily amid broader market uncertainty.

Still, analysts see merit in VIP’s efforts to reimagine its go-to-market strategy. The brand’s reputation, backed by a 54-year legacy, gives it a foundational advantage over emerging D2C competitors in the innerwear space. If VIP Clothing Limited can translate digital partnerships into meaningful revenue growth and improved margins, the stock could see renewed interest from long-term institutional investors.

Should investors consider buying, selling, or holding VIP Clothing shares?

The case for buying VIP Clothing Limited shares hinges largely on belief in its turnaround through digital innovation. Investors with high-risk appetite and a long-term view may see current levels as an attractive entry point, especially given recent strategic momentum. However, with current earnings still in the red, many will wait for a clearer improvement in core financials before committing fresh capital.

From a “hold” perspective, the ongoing digital expansion—including the Zepto partnership—may serve as a catalyst for medium-term value creation if accompanied by operational efficiency and revenue uptick. Until then, a cautious outlook may be warranted given the company’s historical underperformance and financial concerns.

In sum, VIP Clothing Limited is at an inflection point. While its retail model is undergoing a timely reinvention, the success of these digital initiatives must eventually reflect in earnings and investor returns. For now, the sentiment is cautiously optimistic—but results will need to follow.

What does the Zepto deal signal for India’s quick-commerce evolution?

Beyond brand-specific implications, the VIP-Zepto alliance underscores a critical shift in the Indian quick-commerce ecosystem. Once focused solely on groceries and basic essentials, the model is now embracing discretionary and lifestyle categories like innerwear, beauty, and electronics.

Zepto, founded in 2021, now operates across 70+ cities and delivers over 45,000 products, supported by hyperlocal dark stores and advanced routing algorithms. Its ability to integrate national brands like VIP Clothing Limited illustrates how quick-commerce is evolving into a full-spectrum consumer solution.

This retail transformation is likely to inspire other apparel and FMCG brands to evaluate their distribution frameworks. As the demand for instant fulfilment grows, being available in the right zip code at the right time—often within 10 minutes—may become the new benchmark for market competitiveness.