SUBMITTED BY:-manoj kumar

ROLL no.A19
 ABOUT FABINDIA
• Founded by American, John Bissell to:
• Develop market for hand-woven products
• Provide rural employment
• Incorporated in 1960 in Delhi to export upholstery fabric
• By 1965, revenues of Rs. 2 million due to:
• AS Khera, supplier of hand-woven rugs etc from Panipat
• Habitat, major UK buyer of Fabindia Panipat products
• 1974 saw Fabindia’s first retail store in Greater Kailash with ad-hoc
merchandising
• 1977-Featured contemporary design to attract consumers and designers
• Garments were introduced in 1980s after John Bissell got khadi shirts made for
himself
• Habitat was acquired in 1992 and Fabindia could no longer continue selling to it
• John Bissell dies in 1998, passing the baton to son William Bissell who becomes
MD in 1999
 CONTINUED
• PRESENCE:- The stores of FABINDIA are located all over the world with
99 stores in all the major cities and states of India. Moreover FABINDIA
offers its stores in various international places including UAE, Dubai,
Bahrain, Italy and Rome.
INDUSTRY OVERVIEW
• The apparel industry is India's largest foreign exchange earners,
accounting for nearly 16% of India's total exports. In 1996 India textile
export amounted to rupees 35000 crores of which apparel occupied
over rupees 14000 crores . The traditional cloth market is growing at a
rate of 11% a year.
 PRODUCT PORTFOLIO
It’s product ranges from:-
 Garments for men and women.
 Accessories
 Home linen and furnishing.
 Home products
 Floor coverings
 Body care products
 Organic food products and ethnic jewellery
 MARKETING MIX
• PRICE:- FABINDIA’S product range enables it to provide a wide range
of products in a wide price range. The product ranges from garments
for men and women to upholstery, furniture etc. FabIndia has tried to
make sure that the customer cost remains affordable and gives “value
for money”. To this end it has expanded it’s range of garment starting
from rupees 200 to rupees 2000 in order to provide something for its
customers.

• PROMOTION:- FABINDIA has traditionally relied on word of mouth

advertising. It believes that product speaks for itself and this strategy
has uptill now worked very well. It believes that only problem in this
strategy is that customer do not know the location of the store, so to
overcome this they have started using various tools such as mobile
marketing, advertorials in newspaper to aware the customers about
heir stores.
 Contd...
• PLACE:- It has 99 stores location across India. It is trying to increase
coverage in order to make sure that the products are available at
large number of places as possible. It also differentiate it’s store
according to the product’s stored. This ensures convenience for the
customer since the products are available in the same store or in
the nearby stores.
• PRODUCT:-FABINDIA’S product are its differentiating factor and it
has made sure that the quality and style of the product is
maintained over the years. It has a wide range of products ranging
from garment’s to organic food. All the products have one factor in
common I:e handmade and thus supports artisans. This is a very
strong customer value leveraged by FABINDIA which support poor
artisans and provide livelihood to a large no. of people.
 COMPETITION
Secondary competitor Strength Weakness

Tailoring outlets 1. Reaching out to 1. Very fragmented

customers with large business approach.
dispersion.
2. Ensures convenience
of demanding service.

NGO’s promoting 1. Strong community 1. Lack of retailing

based operation. expertise and
handicrafts 2. Complementary inability to minimize
products manufactured cost.
with other firms.
 COMPETITION
Primary competitor Strength Weakness
Retailing houses(shoppers 1. National presence of Diversity of product
stop, Westside, reliance outlets.
2. Retailing expertise and is very less.
trend, Globus)
competitive pricing

Designer Boutiques 1. Scope of product No uniformity in

customization. price across products.
2. High level of
customer intimacy.
 SWOT ANALYSIS
• STRENGTHS:- weakness:-
 Differentiable products. No promotion strategy.
 Brand recognition and loyalty. Limited business channels.
 Diverse product mix. Inconsistent product quality.
 In house manufacturing. Low awareness.
 Price trend setters.
 Different categories of store.
 Customer loyalty.
 Cont.…
• OPPORTUNITIES:- THREATS-
Promoting e-business channel. Substitute producing competitor.

Organic food products. Not in touch with fashion trends.

Customer acquisition strategies.
 Government Interventions
• Indian apparel manufacturers are facing severe problems given that the
rise in price and scarcity of fabrics and the industry has sought govt
interventions to initiate some kind of mechanism that will check
uncontrolled exports of yarns and cotton from the country.
• Garments exporter association has expressed concern over the sharp
rise in price of cotton which is severely affecting the performance of
Indian apparel industry.
• The price of yarn are rising given the rising exports of cotton to western
countries. It is manufactured in western countries and again exported
to India which is giving tough time to apparel manufacturers.
• Government is thinking of banning exports of cotton or put on end of
high quality exports from going to western countries. Government has
been requested to impose high duty on cotton export in order to deter
exports of cotton.
 FUTURE PLANS
 The future plans of FABINDIA includes leveraging the organic
products section, since it is still in a nascent stage in India. It plans
to expand nationally and internationally.it is also trying to reduce
the number of defects in the products to a minimal which includes
bleeding of color, shrinkage etc.
 For FABINDIA William Bissell has set a very ambitious target of
reaching 250 stores and a turnover of rupees 2000 crores at the
end of 2011.the growth is expected to come from new stores as
well as increase in sales from existing stores. This increase will be
achieved by increased emphasis on premium products.
 Growth in locations was expected to come from expansion in
overseas market as well as greater penetration in the markets in
the smaller towns. FABINDIA planned to expand significantly in
Tier II and Tier III cities.