Group 1: 32, 34, 42 (L), 45, 47 & 55 T.Y.B.B.

A

Locational disadvantage with regards to Fabindia

Location does play a important role to decide a businesses f ate. But its not always to be. You can see that in the case of Fab india (GOA) In Goa, Fabindia is located in the interiors and not in the city or not on the busy roads but surprisingly it¶s not empty. There are many reasons for this kind of location. They wanted a stand alone store with ample parking space with lots of space inside the store. The place suited the requirement. Also the rentals in the main city area are too high for the kind of huge area which they were looking out for. Location outside the city allows them to have cheape r land and also allows them to have more space to have huge dis play areas and make the place very attractive. Fabindia products get sold due to their quality . The customers, who shop in these places, are mainly upper middle-class educated people and tourists, who have slightly different taste and for whom location does not matter. These customers include all age groups. Fabindia does have local customers, who are urban middle class , the rural population cannot afford it, so the location does not matter. People who believe in these products, just locate the Fabindia store and shop. They want customers to come to their store especially for shopping. This popular store has a fixed customer base and these customers influence their family & friends. If u see in metros Fab India is located right on the busy streets its be cause metros have urban middle class clientele who buy their products as their style is for urban India and Goan market has not got upto that trend till now.

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