Fabindia 631s

INTRODUCTION

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India's largest private platform for products that are made from traditional techniques, skills and hand-based processes

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Initially commenced as a village based industry in 1960 by John Bissell

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Links over 40,000 craft based rural producers to modern urban markets

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Promotes inclusive capitalism, through its unique COC (community owned companies) model

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108 stores in 40 major cities of India.

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6 stores in international places including UAE, Dubai, Bahrain, Italy and Rome.

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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 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 handmade products for customers, but also to 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 handwoven 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 and encourage good craftsmanship.”

William bissell (MD fabindia)

Vision

Mission

Grow revenues of Rs 8.6 billion from 200 stores by 2011

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 Self owned & leased Stores

t Venture in Rome

Franchisee in China

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  ant 

FABINDIA STRATEGIES 

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Multiple procurement sources (private, NGOs, farmers‟ groups and individual farmers) (Networking):It has 122 products from 16 suppliers with 220 product packs

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Training and financial to suppliers

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Partnership with small producers

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No direct working with producers

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Partnership in Community owned companies of producers

FABINDIA STRATEGIES 

Home delivery

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Deepavali gift packs

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Free samples

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Promotional literature (brochures, pamphlets)

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focus on generic promotion oforganic

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Participation in organic/traditional food

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festivals/rural exhibitions/melas

CURRENT MARKETING SITUATION 

A delighted Customer is our Best Brand Ambassador”

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USP : quality of the fabric and the cultivated image of „Indianness‟

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Does not follow any customer acquisition strategy: focuses on customer retention

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Key element: word of mouth publicity ( Zero advertising except print ads during promotions ), advertorials, mobile marketing, in-store posters

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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 •Metros •Posh locality •All product lines

Concept stores •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 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,

Organized Sector

Unorganized sector

Regional -Law Garden Market for buying handicraft and Gujarati outfits

ACCORDING TO US 

Major respondents were above 30 years of age

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of Information: Word of mouth Print Media

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Online Shopping behavior

PRORITY FACTORS 

Quality of Fabrics

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Range of Garments Available

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Price of the Garments

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The Fabindia brand

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Traditional work

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Natural Fabric ( eg. Cotton, Linen)

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Location of the Store

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Service provided by staff

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Display of the Garments at Store

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Store Ambience

OBJECTIVES • Capitalize the potential to expand the Target Segment from 25+ years to 18+years • Fabindia does not , 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 hip 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      

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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 of color and design Suppliers flourished with Fabindia‟s growth Trust embedded in supply chain kept problems under control

GROWTH OF (Rs. million) Turn over PBT PAT

Financial year 2004-‘05 869.9 84.4 56.5

Financial year 2005‘06 1293.9 139.2 78.1

It 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 

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Expansion aiding strong regional presence  

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Outlets to counter regional competition Sourcing from local suppliers for outlet and other regions will be easier

Growth through generating new customers  

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Supply chain development for efficiency and quality management

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