WESTSIDE - THE INDIAN RETAILING SUCCESS STORY

GROUP 3

ANU PRIY VIJ

ARCHIT SHANKAR

A ARVIND RAO

SURBHI CHARLA

VEDIKA BURMAN

THE WESTSIDE MODEL

MARKET RESEARCH RETAIL LAYOUT CUSTOMER FEEDBACK PRODUCT POSITIONING ADVERTISING AND PROMOTIONS

MARKET RESEARCH

Appreciated importance of MR – conducted before entering new city 5 member in house team Collected information on buying patterns, demand potential,lifestyles

etc Support from Tata companies like Taj Group , Titan, Voltas, Tata AIG

, Tata Engineering Before entering retail segment conducted research FINDINGS1. Store owned brands and other brands ratio 30:702. Many international retailers stocked only own brands due to more

loyalty,flexibility,high returns3. Heavy investment for brand building and poor economies of scale MR conducted to understand customer behavior to enhance

customer loyalty

RETAIL LAYOUT

1. PHILOSOPHY & PROBLEMS FACED Sold in house brand only – higher margins, more control over

manufacturers(quality,cost), no intermediary costs Expensive real estate – leased shop space Required spacious showrooms in metros : 10000 – 20000 sq ft

2. THE MODEL Free Form Layout/Boutique Layout – fixtures and aisles arranged

assymetrically Merchandise displayed at 2 levels on same floor Merchandise in separate clusters eg. Womenswear and accessories

clubbed together for convenience 2 main divisions Apparel –mens’ wear,womens’ wear, lingerie, kids wear Product – household, gifts, other accessories

3. SOURCING AND STOCKS Each store on avg stored 30,000 SKU’s of

different products Merchandise sourced from 250 exporters

from Delhi , Mumbai and Bangalore Centralised buying for all products except

cosmetics and perfumes to avoid sales tax Carried 63 days of stock days

PRODUCT POSITIONING

Positioned as value for money products - good quality, low prices , contemporary and exclusive designs and wide variety

Good store ambience – shelves not overloaded

Focus on “ I-got-a quality-product-at-a-reasonable-price” feelings

WOMENS WEAR Western formals, casuals and ethnic wear Range had great depth Designer clothing introducedKIDS WEAR Sporty and international look Catered to wide age group: infants to teens For girls – Gypsy, Sporty, Guns n Roses line For boys – Skull and Studd linesMENS WEAR Formals, casuals, ethnic, sports wear, party wear Latest stylesHOUSEHOLD Towels, bathroom sets etc Well coordinated, allowed mix n match New introductions each weekGIFT SECTION Diyas, terracota pots,urns Range of furnitureUTILITY In wrought iron and rope : magazine racks, stools, etc

PROMOTION AND ADVERTISING Focus on 2 parameters – style and affordability Total advertising spend 8% of sales

INHOUSE PROMOTIONS Peaked during summer, diwali and Christmas – “Festival of

Delights” program Promotions based on themes – matching decorations , liver

bands and other attractions Clubwest Classic and Clubwest Gold EXTERNAL PROMOTIONS Advertising on media - Model Fleur Xavier for advertising

contract

CUSTOMER FEEDBACK

Conducted research to better serve customers

Focus on customer feedback Trust in customers reflected confidence in

products

WHY THEY SHOULD

WHY THEY SHOULD

Huge financial base – Rs 2 billion from sale of Lakme Increase in Profit carried forward in 2002- from 64.6 to 90.9

million 10 billion dollar untapped market in India Would have a first movers advantage in India Adept at conducting MR – have a good in house team plus

understand importance of MR Experience in retail business : established supply chain and

trained personnel Could enter food business under a different name to avoid brand

dilution for Westside

WHY THEY SHOULD

Increase in nuclear families Increase in the number of working women . A study on food and grocery retail market by KSA

Technopak, food retail sales make up for close to 63 per cent of total retail sales.

In absolute terms, food retail sales had grown from Rs 3,81,000 crore in 1996 to Rs 7,03,900 crore in 2001 when the non-food retail sales grew from Rs 2,22,400 crore in 1996, to Rs 4,19,000 crore in 2001. 

WHY THEY SHOULDN’T

No experience in retail of food items Would need to acquire new competencies eg

cold storage May lead to brand dilution for Westside as

people associate it with clothes

THANK YOU