The report of the case of Brand W:

1. Issues Identification
2. Analysis of issues
3. Alternatives
4. Alternatives evaluation
5. Recommendation

BRAND W: STRATEGIZING FOR OMNI-CHANNEL RETAIL' 9B18A046 Jones Mathew, Banasree Dey, and Sandeep Purl wrote this case solely to provide material for class discussion. The authors do not Intend to illustrate either effective or Ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying Information to protect confidentiality. This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order coples or request permission to reproduce materials, contact Ivey Publishing Ivey Business School, Westen University, London, Ontario, Canada, NOG ON1; (0) 619.661.3200; (e) cases@vey.ca; www.veycases.com. Copyright 2018, Ivey Business School Foundation Version: 2016-07-16 In March 2018, the India Fashion Forum recognized the brand Was the most admired fashion brand of the year. The W brand was owned by New Delhi-based TCNS Clothing Company Limited (TCNS). In 2017, TCNS became the first home-grown Indian apparel company to earn11.5 billion* The company achieved this with its four brands: Weve, W, Wishful, and Aurelia. This achievement was driven to a large extent by the phenomenal growth of TCNS's main brand, W, in a fashion apparel retail market worth $2,970 billion. Inspired by this success, W had been expanding its retail presence in the country, and had ambitions of opening 100 stores every year across India. The company had been building its online presence through a company website and online marketplaces. Targeting modern Indian women with a need for contemporary designs that combined Western and Indian styles, the brand had clearly captured the interest of many. However, Woperated in a changing retail environment, where both retail giants and online brands had been struggling with their returns. The company realized that it would not suffice to simply add channels, and it recognized omni-channel retailing as the way forward' Omni-channel retail was a business strategy that enhanced customer experience, business performance, retail sales, and loyalty. It aimed to integrate all channels of a business to make it possible for both customers and salespeople to enjoy an optimally functional range of sales capabilities. However, Anant Daga, chief executive officer (CEO) of TCNS, was aware that adopting an omni-channel approach came with its share of challenges like price discounts. He needed to find a way to seamlessly manage customer interactions across multiple touchpoints, manage a complex supply chain, and achieve product and messaging consistency across channels. Further, he had to determine how an offline-dominant brand such as W should traverse the journey from traditional to multi- channel to omni-channel retailing. In the competitive branded women's apparel market, could W sustain its foothold? Would an omni-channel strategy help W build a strong base of loyal customers? COMPANY BACKGROUND In 2002, the Pasricha brothers Arvinder Singh and Onkar Singh, experts in exports, saw an opportunity in the domestic Indian apparelmarket. "Two developments got us to think inwards," said Onkar. "First, India opened up its economy, and second, we started facing export trade blocks. That's why we took a strategic decision to enter the domestic market. TCNS, which was named after the brothers' grandfather, Trilok Chand, and father, Narender Singh, launched the W brand in a middle-class market in Delhi with an impressive 278- square-metre (3,000-square-foot) store that exclusively showcased Indian ethnic wear." They closed it down after a few months and noted that the store had intimidated Indian women shoppers, who felt that such a big Page 2 9B18A046 store in the heart of a middle-class market must be offering high-priced products. "Women would look at the store from outside, conclude that it was pricey, and walk away without coming in" Onkar noted. The Pasricha brothers were fast learners, and they took a quick decision: they shut the large store and opened a smaller one in the same market, and business took off. They had just mastered an important facet of the Indian shopper's psychology. Starting with just 30 stores in 2008, Whad a retail presence of 250 stores by 2017,14 and sales for W and Aurelia combined rose from #3,590 million's in 2014 to a projected #10,000 million in 2017. In 2017, the company had four brands in its portfolio (see Exhibit 1). According to retail consultant Harminder Salmi, TCNS owed its success "to the design, fit, and affordability of its outfits.... It created a new contemporary ethnic-wear category.... The initial struggle it faced was die to it being a new concept, but once this category took off, the company was one of the first to gain from it."" Early Success W had been able to carve out a place for itself since its founding in 2002 based on two main factors. Firstly, it focused on profitability rather than vanity. The owners leamed very early on, as they went about building the brand into one that was familiar among India's women consumers, that large and glamorous retail touchpoints created a misplaced perception of a brand that was "intimidating" or "too pricey." This was their experience when they launched a large retail store in New Delhi's Lajpat Nagar, where bargain- hunting middle-income Delhi women shopped." To their credit, they quickly retraced their steps, closing this store and opening stores in more familiar sizes of 55-93 square metres (600-1,000 square feet).19 Secondly, innovative styling was a key characteristic of the brand Indian women were increasingly venturing into formal workspaces. By 2012, 33 per cent of Indian working-age women were working outside their homes,20 and women comprised 16.2 per cent of all urban workers in 2015-16.21 For W, this was a large enough market. No other major brand offered competitive products that combined pricing approach, and targeted clientele." This growing segment of working urban and semi-urban women who sought to wear a fusion of fashionable and traditional Indian clothing formed a lucrative market.23 Repositioning In keeping with changing fashion trends, W changed its brand positioning to emphasize fashion-oriented fusion wear for the contemporary Indian woman. In 2007, roughly five years after it launched, W understood that its target audience of contemporary Indian women needed more than the ethnic wear they were being presented with. In response to changing consumer preferences, Wcame up with a contemporary product mix. At that point, in 2007, W stopped being an ethnic brand and was reborn as a fusion-wear brand. As Daga stated, Over the years, we have realized that the traditional definition of ethnic wear is undergoing a sea- change. And this compartmentalization of fashion on the basis of ethnic or western wear-is only Imited to the brand's point of view. Consumers have stopped booking at them under two different lens.25 By 2017, W was clearly focused on transitioning and occupying a predominant lifestyle positioning by adding multiple categories as part of this long-term goals. Daga said, In the past, we have successfully added jewellery as a category under the W brand. We are now adding bags and we might very soon come up with footwear. Looking at the pace at which the