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Sujata
Agrawal
 Style,
affordable prices, quality — these are the factors that have
shaped Westside’s success story in the retail fashion stores
business. Launched in 1998 in Bangalore, the Westside chain
has, ever since, been setting the standards for other fashion
retailers to follow.
The Westside story really
began in 1997, when the Tatas sold Lakme, their cosmetics
business, to Hindustan Lever and acquired the Britain-based
Littlewoods retail chain. A new entity called Trent Limited
emerged from this move and Littlewoods was renamed Westside.
Today Westside has seven outlets, one each in Bangalore, Hyderabad,
Chennai, Mumbai, Pune, New Delhi and Kolkata.
Westside stands out from
the competition for a variety of reasons. One is that a majority
of the brands the chain stocks and sells are its own, unlike
retailers who store multiple labels. About 90 per cent of
Westside’s offerings are home-grown, and they cater to different
customer segments. The other 10 per cent includes toys, cosmetics
and lingerie.
According to Himanshu
Chakrawarti, Trent’s general manager, this arrangement has
many advantages. "Being a brand retailer, we are able
to develop our style and image in a manner whereby customers
can build a relationship with us," he says. "We
also have the flexibility of pricing and are able to fulfil
the promise of affordable style." Price is crucial in
the Indian retail scenario and Westside’s focus on this factor
is part of the reason it increased sales in October-December
2001 by a whopping 71 per cent over the same period the previous
year.
Repeat customers, those
who keep coming back to Westside, are another vital element
in the chain being a winning proposition. Simone Tata, Trent’s
chairperson, puts that down to giving customers something
to come back for: "We have something new every week."
Mr Chakrawarti adds that "ultimately it’s the products
and their quality that makes customers return again and again".
Visit a Westside store
and Mr Chakrawarti’s words are clearly confirmed. Each outlet
blends products, ambience, customer service and facilities
to create a standout shopping experience. The stores are spacious
(10,000 to 20,000 square feet each), designed to look and
feel international, and products are displayed attractively.
The Westside outlets in Mumbai and Hyderabad have an additional
drawing card: Taj Cafés that serve delicious pastries, sandwiches
and coffee.
Westside has recently
expanded its range of merchandise by offering outfits from
some of India’s 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 chain’s only-our-own-brands concept.
What was the idea behind
the move? According to Mrs Tata, it is Westside’s response
to the increasing 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 Rs 600).
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.
Facing the challenge
The greatest challenge for Westside in its quest for a
place in the retail sun is not the competition from similar
organised players, but from the unorganised sector (98 per
cent of India’s retail garment industry operates in the unorganised
sector). According to Mr Chakrawarti, the task at hand is
to get people who usually shop with unorganised players to
visit organised stores such as Westside.
The general perception
in India is that organised retailers are far more expensive
than unorganised ones. Westside’s response to this dogmatic
view has been to connect price to quality. "We had to
get customers to realise that they were getting the latest
style at very good prices, and in a comfortable environment,"
says Mr Chakrawarti.
The other challenge for
Westside is that the retail fashion business in the country
is becoming increasingly crowded with new players, Indian
and foreign. Among the new entrants have been Wills Sport,
Raymonds (Be), Globus, Nike, Crocodile, Mango and, the latest,
Marks & Spencer. But this does not perturb Mr Chakrawarti,
who says it’s ironic that while Marks & Spencer is actually
a value-for-money brand abroad, it has positioned itself in
India as a high-style clothier, selling at prices way above
that of its competitors.
Customers are what everyone
is after, and it is they that Westside is concentrating on.
Continuing research and surveys have helped the chain build
on customer loyalty. "We’ve learned enormously through
the years," says Mrs Tata. "It is absolutely essential
to listen to customers — what they want in terms of style
and price, and to understand the demographics of it all. It’s
continuous learning."
An example of this commitment
to customers is in the small matter of Westside tailoring
its products to suit particular regions. The chain learnt
that customers in south India tend to be smaller in size than
their counterparts in the north, and in some cities women
rarely wear sleeveless dresses. Knowing these facts has helped
Westside get the right balance in terms of products and the
people they are intended for.
An assured return-and-exchange
policy reinforces customer confidence in the chain. No questions
are asked and a bill is not necessary. "We can do this
only because it is our own merchandise," says Mr Chakrawarti.
"Many-brand stores are governed by the exchange-and-return
policy of the various labels they sell."
Another winning Westside
idea is 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 theme based,
with decorations to match, live bands and other attractions.
So last year’s Westside show had a Hawaiian theme and this
year the chain has gone the ‘Wild West’ way.
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. "To find space for a large-format store is becoming
increasingly difficult," says Mrs Tata. "Either
the rates are too high or space is just not available."
That deterrent should
not be more than a blimp in Westside’s upward trajectory.
The chain being onto a good thing has resulted in Trent’s
retail business making a profit for the first time (in the
third quarter of 2001), and Mrs Tata is optimistic about doubling
turnover in the next two years. The company is now looking
to get into food retailing, but the plans on this front are
still under wraps.
Fashion and food — the
fusion promises to bring wholesale success to Trent as it
consolidates its position in the retailing business.
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