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Established in 1998, Trent operates Westside, one of India's largest and fastest growing chains of retail stores.
The founder of Westside, The Tata Group, is one of India's oldest, largest and most respected business conglomerates and was founded by Jamsetji Tata in the mid 19th century.
The Tata Group comprises 96 operating companies in seven business sectors Information systems and communications, Engineering, Automotive, Materials, Services, Energy, Consumer products, Chemicals, with revenues $21.9 billion (Rs 967,229 million) in 2005-06, the equivalent of about 2.8 per cent of the country's GDP, and a market capitalization of $46.9 billion.
The company, Trent limited, has a turnover of Rs. 246.1 crore in FY 2004-2005 and currently operates 23 stores in the major metros and mini metros of India.
Promising high-quality, the latest styles, an international shopping experience and value for money, Westside has created a loyal following with its own brand of merchandise. 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. Almost everything at Westside is exclusively designed for Westside. Boasting of a variety of designs and styles, the merchandise at the Westside stores are a mix of stylized clothes, footwear and accessories for men, women and children, table linens, artifacts, home accessories and furnishings. 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.
Westside was named the 'Most Admired Large Format Retail Chain of the Year' by the Lycra Images Fashion Awards 2005.
Indian retail industry Retail is the largest industry sector in the world, with the penetration of retailing exceeding 80% of the population in the developed nations, and
40% in developing nations like Thailand, Indonesia, and Malaysia. India’s forecasted economic growth of 8 percent of GDP in 2006 and one billion strong population are the fundamental supporting factors of retail industry in India. The Indian retail market is large, but highly fragmented with very few large retailers, and is pegged at around Rs. 350 Billion in 200405, is expected to be around Rs, 1,095 billion by the year 2010. With India’s top five retailers accounting for only about 3-4% of modern retail, there is a huge scope for organized retailing as most of the consumers are savvy and focused on value. The retail growth is estimated to be slightly higher than GDP growth at constant prices. The penetration level of organized retail is expected to touch 8% by 2010. The forecast growth in real retail sales in 2003-2008 is 8.3% per year compared with 7.1% for consumer expenditure. Modernization of the Indian retail sector will be reflected in rapid growth in sales of supermarkets, departmental stores and hypermarkets. Sales from large format stores are to expand at growth rates ranging from 24% to 49% per year during 2003-2008. the recent policy initiatives like allowing foreign companies to own up to 51 percent in single brand retailing has prompted many global single brand retailers to enter India. The big multi brand retailers like Walmart, Tesco and Carrefour which are basically discount or value retailers are mulling joint ventures with Indian companies as they are not permitted to take FDI route. The Indian Retail Sector is at an inflexion point, with many enabling conditions coming into existence like favourable demographics, rising consumer incomes, real estate developments especially with emergence of new shopping malls, availability of better sourcing options both from within India and overseas, and changing lifestyle that bring the Indian consumer closer to the consumers in more developed markets and availability heightened usage of credit cards. All these changes are driving growth of the organized retail sector. Of the many categories that make up organized retail, food and grocery is the biggest, accounting for a share of around 76%. However, in terms of penetration, its share is the lowest at around 1%, footwear and clothing boast the highest organized retail penetration.
Organized retail in India
ORGANIZED RETAIL IN INDIA Others 10% Clothing & textiles 36%
Clothing Footwear Accessories Food & grocery 14%
Total retail (2005-06) Rs. Billion 716 104 416
Organized retail (2005-06) 141 32 25
watch & jewellery 17%
Where Westside Deals
MAIN OBJECTIVES OF THE COMPANY
At Westside our mission is to be regarded by our customers as the most relevant retailer in the country.”
• To expand / strengthen the existing chain of Westside department stores and the Star India Bazaar hypermarket stores to other cities, to consolidate their position in the existing markets and to make in -roads into new markets. • Achieve an 41% increase in sale • Achieve higher increase in sales during the festival period • To launch new product categories or new format of delivery or new brands in order to meet the changing requirements of the customers • Delivering an international shopping experience to customers
• To attain and maintain the leadership by being one of the top players in the retail sector.
The focus is to open Trent’s Rs. 104 crore acquisition of India’s largest privately owned books and music landmark.
• To give best pricing to the customers and to win their loyalty. • Upgrading the existing Westside stores and the Company infrastructure Working Capital Requirements.
Factors Affecting Westside
Market proliferation The growing India media sector has played a major role in the growth of the
organized retail sector, thereby, giving a good opportunity to Westside to expand its roots and attracting customers. Consumers are constantly being exposed to brand promotions and advertisements across product categories through the various media channels resulting in increased awareness and attraction towards Westside. Literacy profile
65% of the Indian population is literate and this figure is expected to rise to 75% in 2010. This increase in the literate and professionally qualified population, with increased spending power, also affects the choice and and product demand, which is also reflected in the growth of retail industry. Today, people think of their clothes as a lifestyle symbol and give a lot of importance to brand as well as quality. They expect the best but that must be balanced with value and quality. Westside is providing both brand and quality in its products. So its popularity is rising, as Westside is still in its growing stage not an established brand as yet.
There has been a significant migration of population from rural to urban areas in the past 10 – 12 years. People are moving from all over the country to the commercial cities like Mumbai, Delhi, Chennai, Hyderabad, Kolkata. This offered plenty of marketing opportunities for all product and service organizations. Westside has recognized this opportunity and is going ahead, opening its stores in all metropolitan cities like Hyderabad, Delhi, Mumbai etc.
Trends in prices of products
Inflationary trends in prices could pose a serious threat to firm’s survival. If the prices of the raw materials, labour and utilities like electricity are showing inflationary trends, the firm may have little option but to pass on this hike to the consumer in the form of increased prices.
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