Westside - A Success Story in Indian Retailing*

Abstract:

This case examines the reasons behind the success of an Indian retailing major – Westside. It provides a detailed examination of the business model adopted by Westside and its merchandising policies in comparison to its competitors. The case also discusses Westside's store layout and its marketing strategies in detail.

Issues: » Discuss the strategy behind the decision of retail stores to opt for store-owned brands, and the merits and demerits of such a strategy.

Questions for Discussion:

1. While most major Indian retailers sold established brands to a greater extent than their own brands, Westside retailed its own brands to a very large extent. Examine the reasons for Westside's decision to sell its own brands rather than established brands? What are the advantages and disadvantages of stocking store-owned brands? Give reasons to support your answer.
2. Discuss the Westside retail model in detail, examining its retail layout, its focus on market research and customer feedback, the positioning of its products and its heavy advertising and promotions. Which of the above strategies have contributed critically to the success of Westside? How far are those advantages sustainable in the long run?
3. While the retail clothing industry is predominantly unorganized, competition between organized players is still acute, with many leading Indian business houses evolving and international players showing interest. Analyze the competition in the retail clothing and lifestyle products industry with special reference to Westside. What strategies would you recommend for Westside to position itself effectively against the competition?
4. Westside decided to make a foray into food retailing by end-2003. Do you think Westside should venture into food retailing, or it should remain focused on its current line of business?

Key words:
Indian, retailing, Westside, examination, business, model, merchandising, policies, competitors, layout ,marketing strategies

*Note : This case is a simplified version of a longer case study, and is intended for learners for whom English is a foreign language. The longer version of this case study (BSTR043) is available at: http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy2/BSTR043.htm