Westside: The Indian Retailing Success Story

It was observed that in India, garment retailers generally stocked both store-owned brands and other brands in the ratio of 30:70, as it was easy to attract customers for the established brands. However, many major international retailers stocked only their own brands because of high returns, increased store loyalty and less restriction in terms of display, price and promotion. Stocking of only store-owned brands for Indian retailers posed certain problems, however. Though they offered high margins, retailers suffered on account of poor economies of scale (until they established many outlets) and heavy investment in brand building. While all major Indian retail chains stocked established brands, Westside decided to push its own brand...

The company realized that these were the two pillars based on which it could make an impact on customers. The stores were positioned on the 'fashion at affordable pricing' platform. The store level promotions were integrated with external communication through advertising. In-store promotions were used to give the shopper a feeling of getting greater value, to offer a good shopping experience. Westside's total advertisement spending was 8 per cent of its sales. Westside did its regular brand building through advertisements in the media and also through its in-house promotions, which peaked during summer, Diwali and Christmas. During the Diwali season in 2000, Westside launched a "Festival of Delights" program which gave each shopper a scratch-and-win card...