2. INTRODUCTION
• Founded in 1960 by John Bissell to market the diverse craft traditions of India, Fabindia started
out as a company exporting home furnishings. The first Fabindia retail store was opened in
Greater Kailash, New Delhi fifteen years later.
• By the early eighties, Fabindia was already known for garments made from hand woven and hand
printed fabrics. The non-textile range was added in 2000, while organic foods, which formed a
natural extension of Fabindia’s commitment to traditional techniques and skills was added in
2004, with personal care products following in 2006. Handcrafted jewellery was introduced in
2008.
• Today, with a pan-India presence, Fabindia is the largest private platform for products that derive
from traditional crafts and knowledge. A large proportion of these are sourced from villages
across India where the company works closely with the artisans, providing various inputs
including design, quality control, access to finance and raw materials.
4. FABINDIA PRODUCTS
• The major portion of Fabindia’s product range is textile based. Non- textile
introductions to this range are Home Products (introduced in October 2000), Organic
Food Products (introduced in July 2004) & Fabindia’s range of authentic Personal
care products (introduced in March 2006).
• The textile-based product range includes ready-to-wear garments and accessories
for men, women, teenagers and children; bed, bath, table and kitchen linen; floor
coverings, upholstery fabric and curtains. Cotton, silk, wool, grass, linen and jute are
the basic fibres used.
• The Home Products range carries furniture, lighting, stationery, tableware, cane
baskets and a selection of handcrafted utility items.
• Fabindia Organics carries several types of cereals, grains, pulses, spices, sugar, tea,
coffee, honey, fruit preserves and herbs.
• Fabindia's range of authentic Personal care products includes soaps, shampoos, hair
oils, pure oils, moisturisers, body scrubs, face packs, hair conditioners & special skin
care products.
11. Fabindia is a direct link between suppliers and
distributors. It has launched premium products in the
consumer market that are handmade and hence has
taken a lot of time and effort compared to machine-
made products. The company has adopted a value-
added pricing policy for its products and as its
customers are aware of the true value its policy has
been a success.
Fabindia has actually adopted a product-line pricing
policy and has established a price-level for each of its
products. These range from high-low-medium. It has
thus been successful in attracting customers from
different sections of society. Fabindia has an annual
turnover of nearly 500 crore rupees and it is a
testimony to its growing demand that has resulted in
greater revenues for the company.
12. Fabindia’s product range enables it to provide a wide range of products in a wide price range . the
products in a wide price range .the products range from garments for men and women to
upholstery ,furniture etc. obviously these products have different price range. But fabindia has tried
to make sure that the customer cost remains affordable and gives “value for money”.
14. Product reach to customer
Fabindia has a unique way of building its presence by making its outlets almost in all big cities in India. There
are almost 259 stores in 96 cities PAN India. It also went International by opening 11 stores worldwide.
15. Differentiation of Stores
It decides its stores specifically according to the product type it offers to customer. Like
Furniture Store, Garments, Organic Products, Body products and Jewellery. This is to
provide convenience to the customers according to their need. Sometimes all the products
are under the same roof but on different floors and sometimes it’s completely in the
different store at different place.
16. The distribution system involved with major segments like:
Fabindia Physical Store
It has decided to sale its product by itself in the domestic market. As it has the fear of getting diluted
if it get distributed through franchisee.
17. Fabindia Online Store
• It has the continuous supply chain from rural India and has opened several online stores to meet the
demands of the customers successfully from any place. Online sale is done from the URL
www.fabindia.com
Placement strategy?
• It has very strong strategy to deal with its customers. As its customers are from upper middle class
and higher class only, they open their stores where these elite customers visit regularly.
19. • Fab India has traditionally relied on word of mouth advertising
• believes that product speaks for itself and this strategy has up till now worked very well.
• A delighted Customer is our Best Brand Ambassador.
20. • Zero advertising except print ads during
promotions), advertorials, mobile
marketing, in-store New Markets posters
• Mystery Shopper Program: to check the
customer satisfaction level.
• Fabindia has recognized the advantages
of social media and has adopted
an online marketing strategy to create
visibility for its brand.
21. COMPETITON
• Very little competition from organized sector, primary competition is from small regional
boutique players such as Kilol, Anokhi, Cottons Organic Food and Furniture: Several
organized chains such as Godrej’s Nature Basket in food.
• The ethnic wear segment is also seeing a lot of aggressive expansion from newer players
both in online and brick-and-mortar space
• Leading department chains such as Shoppers Stop, Lifestyle and Westside are increasing
the width of their private label range and offer contemporary styling in the ethnic space,
fuelling growth.
CHALLENGE
• The brand has been consistent to its core and they have been adding newer categories to
remain relevant and also earn higher margins.
• finding acceptance among younger consumers .
• The brand is losing out on attracting new customers as it hugely depends on repeat
purchases.
• The brand needs to tap the potential of organic foods by creating awareness about their
merits.
24. SWOT ANALYSIS
STRENGTHS
• Quintessential Indianness in fabric through the years.
• Popular for authenticity of hand-woven fabric.
• Sourcing system from rural India.
• Strong supplier relationship.
• Provision of capital loans.
• Leniency on order fulfilment & no-return policy.
• 100% use of suppliers capacity.
• Sustainable employment opportunities to rural skilled poor.
• Employees are given autonomy and hence inducing accountability.
• Focus on customer retention instead of generation.
• Large chunk of buyers are repeat purchasers.
• Word-of-mouth strong enough not to require any advertising.
25. WEAKNESSES
• Delays in delivery from artisans
• Opportunity losses due to irregularity
• Insignificant spend on marketing communications
• Losing out on attracting new customers instead of depending only on repeat purchase.
• Untimely delivery of products
• Transport, storage and shelf-life issues of organic foods.
OPPORTUNITY
• Latent potential of organic foods market.
• Leveraging changing consumer tastes & perceptions.
• Awareness generation of merit in these foods.
• Utilize multi-brand retail outlets.
• Use of Fabindia home furnishings in modular flats of buildings.
• If consumer buys a flat or any other, and is impressed, will use Fabindia furnishings.
26. THREATS
• Unorganized local operators.
• Handloom retail shops/chains in regional pockets.
• Souvenir shops providing indigenous products at lower prices.
• Entry of organized brands and companies into retail.
• High expected growth & entry of business houses in large ways
• Competitors access funds from conglomerate partners or
markets.
• Tilt of Indian consumers towards foreign brands.
• Foreign brands alter lifestyle choices of the target market.
• Imported or designer home furnishings have greater flaunt value
vis-à-vis Fabindia.
27. Reasons that made Fabindia one of India’s exclusive retail outlet chains
• A unique ‘traditional, yet modern’ product line
• The major portion of Fabindia’s product range is textile based. Non-textile introductions to this
range are home products including organic food products and Fabindia’s range of authentic
personal care products.
• Launch of its western apparel brand, ‘Febel’
• Fabindia is the only retail brand in the country that flags Indian culture and tradition on an
international podium.
• The craftsmen
• With a strong belief that there was a need of a medium that could spread vast and diverse crafts
of India at every nook and corner of the country as well as aboard, Fabindia links over 55,000 craft
based rural producers to the urban market. The products are sourced from villages all over the
country.
• Franchising
• It is the other area that the company explored as a growth driver. This has enabled it to leverage
local knowledge and relationships, especially in the smaller Tier III and Tier IV towns. Currently,
the company runs more than 400 stores across the country including franchisee and fully-owned
stores.