Westside plans premium push

Tata Group's retail arm Trent is strenghtening its focus on the premium segment for its Westside retail chain, in a deviation from its mid-market positioning.

With this aim in mind, the company is looking to partner with international brands that will be retailed through Westside. It is also associating with budding fashion designers to help them develop their collections.

Westside, which essentially retails private labels, has already entered into a licensee and distribution agreement with Canadian fashion brand Groggy.

Gaurav Mahajan, group head - buying, said, "We are looking for similar tie-ups like Groggy across all the categories to be sold through Westside. These brands could also be retailed outside Westside in a controlled manner."

Trent is already master franchisee for Sisley, the premium brand of Italy's Benetton group.

Trent has tied up with three emerging fashion designers and roped in popular designer Narendra Kumar to guide them in developing collections.

"These upcoming designers can exhibit and sell their designs through Westside. The company assessed their creativity, technical knowledge, future vision and commercial acumen while selecting them," said Simone Tata, chairman emeritus, Trent.

The company said it will launch focused collections, the first of which is expected to hit the market by September-October. Westside plans to develop labels with these designers

Kumar said this would bridge the gap between department stores and high-end fashion, facilitating ideas to be converted into wearable fashion.

"Trent's attempt to partner with designers and introduce global brands is a way to lift the bottomline that is being eroded by high rentals, especially in the metros," said a brand consultant, who requested anonymity.

"Though private labels give better realisations, premium labels will aid in boosting absolute margins."

He said such exercises also enabled stores to refresh merchandise as designs get standardised over a period of time.

Trent reported net sales of Rs 144 crore for the third quarter ended December 2007, as compared with Rs 121 crore in the previous corresponding period.

However net profit dipped 4.6 per cent to Rs 10.2 crore in the quarter from Rs 10.7 crore in the December 2006.