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
FINDINGS
1. Store owned brands and other brands ratio 30:70
2. Many international retailers stocked only own brands due to more
loyalty,flexibility,high returns
3. 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 introduced
KIDS 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 lines
MENS WEAR
 Formals, casuals, ethnic, sports wear, party wear
 Latest styles
HOUSEHOLD
 Towels, bathroom sets etc
 Well coordinated, allowed mix n match
 New introductions each week
GIFT SECTION
 Diyas, terracota pots,urns
 Range of furniture
UTILITY
 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