Indian Retailer

8/14/2019 Indian Retailer

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INDIAN RETAILER

History

Trent Ltd is a retail operations company that owns and manages a number of retail chains in

India. The company operates as Westside, one of India's largest and fastest growing chains of

retail stores. They have already established 36 Westside departmental stores measuring 15,000

- 30,000 square feet each, in Mumbai, Bangalore, Hyderabad, Chennai, Pune, Delhi, Noida,

Ghaziabad, Gurgaon, Kolkata, Nagpur, Indore, Jaipur, Lucknow, Ahmedabad, Baroda, Mysore,

Surat and Ludhiana. The Westside stores have several departments to meet the varied shopping

needs of customers. These include menswear, womenswear, kidswear, footwear, cosmetics,perfumes and handbags, household accessories, lingerie, and gifts. Well-designed interiors,

sprawling space, prime locations and coffee shops enhance the customers' shopping

experience. The company holds 79% interest in Landmark Ltd, which is engaged in the business

of retailing of books, toys, stationery and music. Landmark Ltd has 18 stores, which includes

seven airport and hotel stores. The company also operates Star Bazaar, a discount hypermarket

format. Their other subsidiaries include Trent Brands Ltd, Fiora Services Ltd, Satnam Developers

and Finance Pvt Ltd and Nahar Theatres Pvt Ltd. Trent Ltd was incorporated in the year 1952 as

Lakme Ltd. In March 1998, the company acquired 100% equity shares of Trent Ltd (formerly

known as Littlewoods International (India) Ltd) from Littlewoods International Ltd, UK for a

consideration of Rs 11.09 crore. Trent Ltd was amalgamated with the company with effect fromJuly 1, 1998 and the name was changed from Lakme Ltd to Trent Ltd with effect from June 15,

1999. The company forayed into the retailing business post hive off of their cosmetics business

to Hindustan Lever in 1997. In the year 1998, the company established Westside, a lifestyle

retail chain. They started their operations at Hyderabad and Chennai on December 15, 1998 and

March 5, 1999 respectively. In April 28, 1999, they opened a store at Hughes Road in Mumbai

and in August 2000, they opened a store in Pune. In April 2001, the company opened a 12,000

sq ft Westside store in Karol Bagh, New Delhi and in June 2001, they opened the Kolkata store,

admeasuring 18,000 sq ft. During the year 2002-03, Fiora Services Ltd became a subsidiary of

the company, which is engaged in the business of rendering sourcing activities, clearing &

forwarding and other related services to the company. The company opened two new stores

New Delhi and Nagpur during the year. During the year 2003-04, the company opened their

stores at Mumbai, Ahmedabad, Noida, Mulund and Bangalore. During the year 2004-05, the

company acquired 100% of the share capital of Satnam Developers and Finance Pvt Ltd, which is

engaged in the business of construction and development of real estate. They opened two new

Westside Stores at Indore and at Andheri, Mumbai. In October 2004, the company opened their

first hyper-market in Ahmedabad under the name of Star India Bazaar, thus marking the


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Trent ventured into the hypermarket business in 2004 with Star Bazaar, providing an ample

assortment of products made available at the lowest prices, aptly exemplifying its Helping you

spend less motto. At present Star Bazaar has 7 stores in 5 cities located in Ahmedabad,

Chennai, Mumbai, Pune and Bengaluru.

This store offers customers an eclectic array of products that include staple foods, beverages,health and beauty products, vegetables, fruits, dairy products, consumer electronics and

household items at the most affordable prices. Star Bazaar also includes a largerange of

fashionable in-house garments for men, women and children, exclusively available at the store.

In addition, Trent acquired a 76% stake in Landmark, one of the largest books & music retail

chains in the country. Landmark began operations in 1987 with its first store in Chennai with a

floor space of 5500 sq. ft.

At present Landmark have 14 big stores , 7 hotel bookstores and 6 Airport stores, varying in size

from 12,000 sq. ft. to 45,000 sq. ft in Chennai, Bengaluru, Gurgaon, Mumbai, Vadodara,

Gurgaon, Pune, Lucknow, Ahmedabad and Hyderabad. Until 1996, Landmarks product portfolio

comprised books, stationery, and greeting cards. It was later that music was added to it.

Landmark also sparked the trend of stocking curios, toys and other gift items. What separates

Landmark from other stores of its kind is the range and depth of its stock.

Store Design

sWestside

Ground Floor

Cosmetics

Jewellery

Watches

Bags

Women Section

Children Section

Household items

First Floor

Casual Clothing

Formal Wear

Ethnic Wear

Shoes

Second Floor


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This store follows a Grid Layout. In this type of layout, cost for retailer is low, easy for customerto shop (no confusion) , good merchandise exposure is possible, cleaning can be done very

easily and security can be managed easily.High quality, latest in-style products, International

shopping experience and value for money pricing-that's what you get at Trent Ltd's Westside

Stores, Starting with one store at Bangalore in April'98, Westside is already a part of the city's

landscape in Mumbai, Hyderabad, Pune and Chennai. Westside is arguably the fastest growing

retail chain in India.

In a crowded market, Westside is one of a kind with its own brand of merchandise, which is

both trendy and individualistic. Everything you find at Westside is exclusively designed for

Westside. The rang is changed frequently (there are new introductions every wee). Every time

you visit you are likely to find something different. Boasting of a variety of designs and styles,

the merchandise at the Westside stores are an exciting mix with a range extending from

stylised clothes and accessories for men, women and children to well-coordinated table linens,

artefacts, home accessories and furnishings. Add to it the plush interiors, sprawling space,

prime locations, a lovely coffee shop, Caf West by Taj and ever-helpful personnel, and you

have the ultimate in retail ambience. It is shopping experience redefined.Westside stores have

the following departments - Menswear, Women's wear, Lingerie, Kidswear, Household

Accessories, Cosmetics, Perfumes and other accessories. Each of Westside's departments offers

a complete range.

For Women there are Western casual, Western formals and very classy Ethnic wear with a lookunique of Westside. In Western wear again the range has great depth spanning from basic lines

to very trendy casual wear. Unlike a lot of stores, the rang at Westside caters a wide age group

and takes into the account the differing tastes and requirements. The rang does not end with

clothes but extends right into accessories. The store has a great range of Handbags, jewellery,

scarves and other accessories.Kids also have huge range to select from. Catering to a wide age

band-starting from infants to early teens the garments sport a look that is hip, trendy and very


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International.In Menswear the range extends from formal to casual to sporty. Also there is a

wide price range starting from value and extending into premium.

The Household section is one of the most contemporary around. Every item here is exclusive

and unique. The merchandise is well coordinated and customers can mix and match and put it

together their way. The rang is extensive starting from colourful towels and bathroom sets tobed linen, table linen, and crockery down to bric a brac for the household. There is also a

wonderful gift section with the trendiest of collection.

The Westside stores are open on 365 days. Most of the stores offer exclusive parking. So

shopping becomes that much more convenient.

Retail Pricing

By offering the right price, ensuring quality and providing the latest styles. By offering private

label brand they are able to offer better prices, as they get rid of profit earned byintermediaries. They buy the best fabric available in each product range and develop their own

styles. Our sales pattern has shown that we have a large number of repeat customers.

Customers return to stores, on an average, once every month.Pricing decisions consistent with

firms marketing strategy and target market.They believe in democratizing their service and

charging fair price.Offers Value for Money proposition for consumers, especially by offering

their own brands.Helps to augment their sales margin.

Some of the pricing strategies used by Trent are:

Competitive Pricing

Consumers have many choices and are generally willing to shop around to receive the best

price. Retailers considering a competitive pricing strategy will need to provide outstanding

customer service to stand above the competition.

Pricing below competitionsimply means pricing products lower than the competitor's price.

This strategy works well if the retailer negotiates the best prices, reduces costs and develops a

marketing strategy to focus on price specials.

Prestige pricing, or pricing above competition, may be considered when location, exclusivity or

unique customer service can justify higher prices. Retailers that stock high-quality merchandise

that isn't available at any other location may be quite successful in pricing their products above

competitors.

Multiple pricingis a method which involves selling more than one product for one price, such

as three items for $1.00. Not only is this strategy great for markdowns or sales events, but


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retailers have noticed consumers tend to purchase in larger amounts where the multiple pricing

strategy is used.

Retail promotion

Westside has recently expanded its range of merchandise by offering outfits from someof Indias best-known fashion designers, among them Wendell Rodericks, Anita Dongre,

Krishna Mehta and Mona Pali. This is an interesting marketing shift, since it means

moving away from the chains only-our-own-brands concept.Promote in-house brand,

with some space for some international labels.

Tie-up with some renowned designers. In 2002, Yuvraj Singh was chosen as Brand Ambassador. Club west card membership to retain the customers. Theme based stores. Like one in Shalimar Bagh(Westside Woman).

What was the idea behind the move? According to Mrs Tata, it is Westsides response to theincreasing demand in India for designer lines. She says: "Designer wear is really an aspiration

product, and it is highly priced. We wanted to offer an affordable selection for weddings and

parties, but since this is still a very small segment we felt it was better to bring in established

designers rather than do it ourselves."

The designers create collections exclusively for the store, and the prices for these are hardly

eye-popping (the Wendell Rodericks range starts at Rs600). Westside has managed to obtain

this exclusivity at a lower price because it has multiple outlets. "Designer wear for us is really,

to use the phrase, the cherry on the cake," adds Mrs Tata.

Relationship Marketing Strategies

Club West, a customer loyalty programme launched in May 2001. The 30,000-plus members of

this club get rebates at restaurants and on holiday packages from the Taj Group of Hotels,

home delivery of alterations, and best of all, special shopping hours on the first day of any

discount sales event organised by the chain.

While Westside does its regular brand building through

advertisements in the media, more important are its in-house

promotions, which peak during the three main festive seasons:

summer, Diwali and Christmas. The promotions are mostly themebased, with decorations to match, live bands and other attractions.

So last years Westside show had a Hawaiian theme and this year

the chain has gone the Wild West way.


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Expansion is high on the Westside agenda. The chain is planning to open more outlets in cities

where it is already present Mumbai and New Delhi will have a second store soon and in

some of the mini metros. The big handicap here is the lack of readily available retail spreads.

HR strategies

Retail HR strategy strives to support the business strategy by ensuring the best possible

employee performance meets the overall goals of the organization. Surely, to do this you must

deploy the right number of employees, with the right skill sets, and position them at the right

time.

Achieving the best possible employee performance will translate into the best possible

company performance. Successful retail organizations realize that business success will be a

journey and not a destination due to emerging technology, evolving processes and ever

changing competitive threats. This is also true for workforce management. A well executed

workforce management strategy will provide tangible and actionable indicators for achievingyour optimal HR objectives, while achieving success in the business.

the retail customer experience should evoke a powerful emotional response. It should be

memorable and build equity with your customers because their encounter with your business

delivers an exceptional experience. Thats a key point of difference in the bricks and mortar

versus online retail space.

From trent HR perspective, the focus on creating world class customer experiences is reflected

in the strategy driven through the L&D teams, but also in the way HR engages with our internal

customers.

Usage of IT in retailing

Retail Information System (RIS) is developed by being used by Westwide thorough out its retail

outlets in india. The system builds efficiencies into ordering, distribution and merchandising

processes and is designed to provide timely, accurate sales information on an item-by-item

basis.

RIS includes:

Touch-screen point-of-sale (POS) cash registers with scanners,

The integration of credit-card authorization and gasoline sales into the POS register, Item-level information to assist in making product-ordering decisions, Hand-held Mobile Ordering Terminals to facilitate ordering, Tools to help store personnel determine appropriate product assortment and slow-

moving items,

Daily weather reports and merchandising information and updates,


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The automation of some daily reporting requirements, such as merchandise andgasoline sales, and

A payroll time-keeping mechanism.By effectively using the point-of-sale cash register and the in-store processor, Westside

franchisees and store managers have immediate access to the information needed to makeinformed ordering decisions by store, by day and day-part and by item. Additionally, the product

assortment tools supply necessary data to improve decisions on deleting slow-moving items

and to make room for top-selling and new items, all with the goal of making sure the right

product is available at the right time for each customer.

The system is not designed as a time-saving tool as much as a tool to use time more effectively

and to make sound business decisions that will boost store sales and profits.

Documents

Indian Retailer