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INTRODUCTION
India's largest private platform for products that are made from traditional techniques, skills and hand-based processes
Initially commenced as a village based industry in 1960 by John Bissell
Links over 40,000 craft based rural producers to modern urban markets
Promotes inclusive capitalism, through its unique COC (community owned companies) model
108 stores in 40 major cities of India.
6 stores in international places including UAE, Dubai, Bahrain, Italy and Rome.
Online Shopping & Exports to 34 countries
PHILOSOPHY
Fabindia was founded with the strong belief that there was a need for a vehicle for marketing the vast and diverse craft traditions of India and thereby help fulfill the need to provide and sustain employment. We blend indigenous craft techniques with contemporary designs to bring aesthetic and affordable products to today’s consumers.
Our endeavor is to provide customers with hand crafted products which help support and encourage good craftsmanship.
Our products are sourced from all over India. Fabindia works closely with artisans by providing various inputs including design, quality control, access to raw materials and production coordination. The vision continues to be to maximize the hand made element in our products, whether it is handwoven textiles, hand block printing, hand embroidery or handcrafting home products.
OBJECTIVES
To create an interest and a market for cottage industries.
Not only provide quality hand-made products for customers, but also to support and encourage the continuation of these Indian traditions by paying a fair price for them.
To give farmers a fair price for their produce, and in supplying the very highest quality food to our customers.
“In addition to making profits, our aims are constant development of new hand-woven products, a fair, equitable and helpful relationship with our producers, and the maintenance of quality on which our reputation rests”.
“Our endeavour is to provide customers with hand crafted products which help support andencourage good craftsmanship.”
William bissell (MD fabindia)
Vision
Grow revenues of Rs 8.6 billion from 200 stores by 2011
Mission
Growth of company along with growth
of suppliers. And to provide more employment
opportunities.
RETAIL
Fabindia’s first retail store opend in New Delhi in 1976. Today, Fabindia has 141 retail stores across India and 1 store each in Dubai, Nepal and Italy.
Fabindia was awarded ‘Best Retail Brand’ in 2004 by The Economic Times of India.
In 2008 Fabindia was named one of India's Top Marketers by Business Today, India's leading business magazine.
RETAIL STORE MANAGEMENT OF FABINDIA
STORE RETAIL FORMAT
NON-STORE RETAIL FORMAT
OWNERSHIP
STORE LOCATION
STORE LAYOUT - FREE FORM
STORE AMBIENCE
DISPLAYS
1)ASSORTMENT
2)UNIT
3)RACK
RETAIL BRANDING STRATEGY
Manufacturer
DESIGN PRODUCE MARKET
STAFF
Store Manager Sales Executive Merchandiser Cashier Accountant
FABINDIA STRATEGIES
Multiple procurement sources (private, NGOs, farmers’ groups and individual farmers)
(Networking):It has 122 products from 16 suppliers with 220 product packs
Training and financial support to suppliers
Partnership with small producers
No direct working with producers
Partnership in Community owned companies of producers
FABINDIA STRATEGIES
Home delivery
Deepavali gift packs
Free samples
Promotional literature (brochures, pamphlets)
focus on generic promotion oforganic
Participation in organic/traditional food
festivals/rural exhibitions/melas
CURRENT MARKETING SITUATION
A delighted Customer is our Best Brand Ambassador”
USP : quality of the fabric and the cultivated image of ‘Indianness’
Does not follow any customer acquisition strategy: focuses on customer retention
Key element: word of mouth publicity ( Zero advertising except print ads during promotions ), advertorials, mobile marketing, in-store posters
Mystery Shopper Program: to check the customer satisfaction level
•Motivating factor for the customer: quality and consistency of product and the service
•Over 83% of Fabindia’ s customers go back satisfied, with 58% being highly satisfied with the brand and its offerings
CURRENT MARKETING SITUATION
FabIndia Store Format
Full fledged stores Concept
stores•Metros•Posh locality•All product lines
•Tier II cities•Specific products retailing
•It has designed the stores’ decor and ambience keeping this in mind
•The layout usually keeps clothes section at the back of the store and the entrance area is utilized for home products.
•The exclusive jewellery counter is also kept in the fronts.
COMPETITION
Unorganized
sector
Organized Sector
Garments Based (Shoppers Stop, Pantaloons, Westside, Reliance Trends, Globus)
Government Handloom Initiatives (Khadi Gramodyog, Cottage Industries Emporium, State Government departments)
Ethnic wear retailers like Khadder, W and Good Things, and Stand alone stores like Shristi, Biba, Anokhi
Local tailors who provide customised garments to the customers at reasonable prices Local NGOs selling wares,
Regional -Law Garden Market for buying handicraft and Gujarati outfits
ACCORDING TO US
Major respondents were above 30 years of age
Contact of Information:Word of mouthPrint Media
Online Shopping behavior
PRORITY FACTORS
Quality of Fabrics
Range of Garments Available
Price of the Garments
The Fabindia brand
Traditional work
Natural Fabric ( eg. Cotton, Linen)
Location of the Store
Service provided by staff
Display of the Garments at Store
Store Ambience
OBJECTIVES
• Capitalize the potential to expand the Target Segment from 25+ years to 18+years
• Fabindia does not advertise, depends on word of mouth. This essence will be taken away with the help of social media campaign and broadcasting and print media tools
• Create fully fledged retail market online• Connect with the customer to customize• Focus on discovering the methods to improve the quality and
life of the fabric• Unravel the issues related to supply chain management
STRATEGY
• Expand average basket size of target segment which coincides with internet
• Promotion optimization • Endorsement: Shabana Azmi , Ranbir Kapoor & Deepika Padukone • Convenient country specific format • Aspiration value - though long term membership benefits• Increase preference n brand recall in foreign countries n NRIs• Lock in % of wallet as Indians increasingly shop online
TACTICS
• Launch online activities with the Summer collection• Online Trial Room: mix n match clothes and design a new look on a 3D
simulated trialroom w/ a model as per physical specification• Exhibition + workshops on ground• Diwali – make ur own gift bag for your family/friend – buy them a new look
and get it home delivered !
ONLINE CAMPAIGN
Revamping the Website
Social Media Initiatives:Facebook,Youtube,Twiter,Online event website
E-mailer:
CULTURAL EVENT(ON GROUND ACTIVATION)
• The FabIndia Website gives information about the various fabric crafts like Chikankari, Kalamkari, Batik etc. for the customers.
• We will bring this art on ground for them to experience it first hand and also learn it.
• Every metro will have a 2 day workshop cum exhibition where these artists will put up stalls about these crafts and exhibit the work along with “Live Craft Workshop”, workshops (for more knowledge and interest) for keen audience.
• It will be called “Know what you wear”
• This makes the customers more aware of the work put in for their fabric and helps them with their association with brand FabIndia.
• It will also have a regional food festival at the same time to make it an overall fun and enriching experience.
“WOMEN OF TODAY”.• As an extended activity, on weekends FabIndia will have “weekend promotions” with special focus on “Women of Today”.
•Men can be encouraged to increasingly visit the stores with the women in their lives with offers like “ bring your mom/sis/wife/ girlfriend to shop, and get x% off”
•FabIndia will tie up with various NGOs like Breakthrough, Jagori etc. for their cause of empowering women.
•Viral video to be launched in association with Breakthrough ( along the lines of Mann ke Manjeere)
STRENGHT
Quintessential style Brand recognition and loyalty Diverse product mix Partnering with suppliers Customer Loyalty Sustainable employment
opportunities to rural skilled poor Word-of-mouth strong enough
not to require any advertising
WEAKNESS
Limited channels of business Sourcing strategy skewed
towards suppliers Shortage of qualified personnel
to power the growth. Inconsistent quality of products Delays in delivery from artisans Insignificant spend on marketing
communications
OPPORTUNITIES
In store merchandising & navigation Promoting e-business channel Organic foods market Leveraging Web 2.0 tools and
techniques
THREATS
Substitute producing competitors Not in touch with Fashion Trends Unorganized local operators Entry of organized brands and companies into
retail Tilt of Indian consumers towards foreign brands Rising prices of real estate could hamper growth
SUPPLY CHAIN
Predominantly rural based suppliers
Two level of suppliers
Designers worked with weavers, Artisans sometime suggest designs
No written contracts for suppliers behavior
New suppliers usually come with referrals of existing suppliers
New suppliers are first given trial orders
SUPPLY CHAIN
Bank loans are provided to weavers
No goods are returned back to suppliers, even if they were supplied late or had any variation in terms of color and design
Suppliers flourished with Fabindia’s growth
Trust embedded in supply chain kept problems under control
GROWTH OF
(Rs. million)
Financial year 2004-‘05 Financial year 2005-‘06
Turn over
869.9 1293.9
PBT 84.4 139.2PAT 56.5 78.1It gradually expanded its retail presence across the Indian market
Improvement in the product range by including ready-to-wear clothes ,furniture and home furnishings contributing 30% of the revenue
Mutual growth of the rural suppliers and the Fab India firm
FABINDIA TIMELINE
RECOMMENDATIONS
Heavy investments in back-end of value chain Supply chain development for efficiency and quality
management
Expansion aiding strong regional presence Outlets to counter regional competition Sourcing from local suppliers for outlet and other regions will be
easier
Growth through generating new customers Cannot depend on existing customers to counter competition Must create new customers in all segments
Tie up with different types of graduate schools for talent Rural management graduates for managing supply chain and
rural initiatives Management graduates for helping growth in front-end and
retail arms