There has been a rapid transformation in the buying pattern of Indian consumers
which has been mainly driven by the increasing aspiration for branded products among
the youth. Strong penetration and the influence of visual media have led to a change
in clothing trends in rural areas that have begun catching up with urban consumers.
The share of the organised apparel market is expected to reach $45 billion (38%
of the overall market of $116 billion) by FY25E vs. the current share of 20% of
the overall apparel market of $50 billion.
Trent is a leading organised retail player in India operating various chains of
stores like Westside, Star Bazaar (JV), Landmark and Zara (JV). Trent, incorporated
in 1998, operated 176 stores as on FY17.
Westside is the biggest contributor to Trent’s overall business (90% of total standalone
revenues). It offers apparel, footwear, cosmetics, perfumes, home furnishing and
accessories. Westside’s sourcing/store model spans right from design to shelf, with
intermediary activities like branding, sourcing, logistics, distribution, pricing,
display and promotion. Almost 90% of its total revenues come from higher margin
private label brands, the highest in the industry. This business model has a proven
track record with healthy like-to-like (LTL) sales growth of >6% over the past five
years. As on FY17, Westside operates 107 stores across 58 cities in India.
Landmark Landmark is in the business of retailing books, music, stationery,
games, toys, etc. The chain earlier focused on books and music. It was acquired
by Trent in 2005. Trent added a range of products to Landmark’s offering, including
toys, stationery, sports merchandise, etc. Over a period of time, this segment has
undergone a significant restructuring process, including rationalisation of the
stores’ portfolio. In a restructuring initiative, the store count was reduced from
26 in FY11 to 5 stores in FY16.
Fiora Hypermarket (FHL):
FHL is a subsidiary company of Westside, comprising two stores of Star Bazaar in
Gujarat and Tamil Nadu. It was separated from Trent Hypermarket (THL) to adhere
to the approved FDI guidelines in India. FHL also pursues a grocery online portal
www.my247market.com, on a limited trial basis, to explore the online grocery retailing
opportunity in the proximity of select Star banner stores.
Star Bazaar is a hypermarket concept focusing on categories like groceries, foods,
home care, apparel, home décor, health and beauty products. Trent Hypermarket (THL)
operates in a 50:50 JV between Trent Ltd & Tesco Plc UK. Star Bazaar has charted
out a new version of compact supermarket and neighbourhood Star Banner stores of
various sizes like Star Market and Star Daily. As on FY16, Trent Hypermarket operated
26 Star banner stores in India, concentrated in states of Mumbai, Pune and Bangalore.
Zara is a leading global Spanish fashion apparel brand, focusing on customers at
the premium end. Trent operates Zara stores in a joint venture (JV) with the Inditex
group of Spain with a shareholding of: Inditex - 51% and Trent - 49%. As on FY16,
the JV operated 18 stores across top cities in India. Trent also has a JV with Inditex
for the brand Massimo Dutti, a sister brand of Zara. For FY16, Massimo Dutti commenced
operations with its maiden store in Delhi.