Fab India 6x1t34

1) The business model followed by Fabindia is the community owned company model. Fabindia has followed conflicting goals of profitability and social mission together. It has been true to its founding mission of providing sustainable employment to rural artisans and craftsmen. It has empowered the artisans and has enabled their growth along with the growth of the company. The critical success factors are:  Setting up of supply region companies and creating a sense of ownership among the different artisans and craftsmen. This also solved the supply chain problem and also allowed suppliers to become shareholders in the company.  Strategic and timely market expansion and opening of retail outlets in different parts of the country.  Strategic and timely expansion of the product line.  Eventual decentralization into 9 independent market regions.  Involvement of employees and suppliers in running the business sustainably and profitably. 2) Strengths: Authentic, High Craftsmanship, Good and courteous staff, Good store locations. Weakness: Low visibility, Expensive, Not for Everyday use, Clothes fit issue. Opportunities: Increasing visibility and communication as there is high visit to purchase ratio. Threats: Lack of differentiation between Fabindia and other MBO’s, rise of other small companies selling ethnic wear, increased usage of western clothes for everyday use. I think that Fabindia should continue operating in the niche place for the time being. The reason being the brand majorly suffers from a lack of communication and advertising. As we can see it has almost a 100 % visit to purchase ratio. So in the short term the brand should focus more on reaching out to potential customers and informing them about their product line. 3) By becoming more visible to the customers. Fabindia should start communicating more with their customers. Many potential customers don’t know about the kind of products Fabindia is offering. It has a high conversion ratio when it comes to visits to purchase and I think that they should leverage this strength. 4) Fabindia should broaden its positioning in of customer base. India is a young country and they should make their clothes keeping in mind the latest fashion which the youth of today likes .It should increase the depth of products they are currently selling and offer more variety. Also should start selling clothes which are more used for dailywear rather than for special occasions especially for women.