Company profile

• Founded in 1960 by John Bissell to market the diverse craft

traditions of India.
• The first Fabindia retail store was opened in Greater Kailash,
New Delhi fifteen years later.
• By the early eighties, Fabindia was already known for
garments made from hand woven and hand printed fabrics.
• The non-textile range was added in 2000, while organic
foods, which formed a natural extension of Fabindia’s
commitment to traditional techniques and skills was added
in 2004, with personal care products following in 2006.
Handcrafted jewellery was introduced in 2008.
 Key Facts
DATE EVENTS
1958 John Bissel advised government to run a cottage
industry program.
1960 Founded it was incorporated as an export house
in Delhi.
1976 First retail store in India
1992 Habitat a major customer have merged with
other company.
2003 1st mission :8 million to 22.2million in four years

2005 2nd mission : 1 billion to 4 billion in four years

2006 “ Best India Retail Brand”

2011 200 stores,8.6 billion
2012 Sells 7% stake to Premji Co
2014 Enters Western Wear with ‘Fabels’
• At Fabindia we celebrate India, and endeavour
to bring all that we love about India to
customers around the world.
 The Mission

• We will strengthen and support our

community of customers, designers, artisans,
farmers, makers and entrepreneurs inspired
by India.
• We will give our customers products that
delight them by interpreting our rich heritage
and traditional knowledge, while protecting
the natural environment.
 Marketing Mix
PRICE CUSTOMER COST:
-Least Price - Affordable and quality
- Discount products

PROMOTION COMMUNICATION:
-Word of Mouth - Rely on Customer
Recommendations

PRODUCT CUSTOMER VALUE

-Nine different Product - Products are hand made
Offerings & traditional

CONVENIENCE
PLACE -Outlets at major,
-Maximum Outlets across upmarket locations
India
 Product Mix

WIDTH

Home
Garments Body Care
Furnishings Organic Food (2%)
(70%) (3%)
(25%)

•Women’s wear •Upholstery and ·Body wash ·Cereal

curtains (30%)
• Indian (30%) ·Shampoo ·Honey
LE • Western (20%)
•Bed linens (30%)
·Soap ·Preservers
NG •Men’s wear (28%)
•Table and bath linens,
·Jams
floor coverings (20%)
TH
•Accessories (15%) •Furniture, Lighting, ·Relishes
•Infant, Kids, teens Home accessories ·Coffee
(7%) (20%)

•Maternity wear
 SWOT ANALYSIS
Strengths
•Sourcing system from rural India
•Sustainable employment opportunities to
rural skilled poor
•Focus on customer retention instead of
generation
•Word-of-mouth strong enough not to
require any advertising
Opportunities
•Latent potential of organic foods market
•Utilize multi-brand retail outlets and
construction groups
Weaknesses
•Delays in delivery from artisans
•Insignificant spend on marketing
communications
•Not enough personnel to push Fabindia to
greater growth
•Untimely delivery of products
Threats
•Unorganized local operators
•Entry of organized brands and companies into
retail
•Rising prices of real estate could hamper
growth
•Development of government co-operatives
 Competition
•Garments Based (Shoppers
Stop, Westside, Reliance
Trends, Globus)

•Government Handloom
•Local tailors who
Initiatives (Khadi
provide customised
Gramodyog, Cottage
garments to the
Industries Emporium, State
customers at reasonable
Government departments)
prices
Organized Unorganiz
•Designer Boutiques
Sector ed sector •Local NGOs selling
wares, like dilli haat,
Ethnic wear retailers like
etc
Khadder, W and Good
Things, and Stand alone
stores like Shristi, Biba,
Prapti, Sadka, and Shoma
 Foreign
Expansion
Where???
ANSOFF MATIRX
AUSTRALIA 4,20,000
U.K 23,60,000
JAPAN 27000
 Australia

• Although Australia is relatively geographically

remote and has small domestic market, it is
economically successful and its citizens have
comparatively high standard of living.
• Due to its small domestic market, Australia
needs to trade actively on the international
market place and Australians know that they
are open to new ideas from overseas.
 Japan
• Japanese are good to take in fashionable and
trendy taste.
• At first, an encounter with Japanese may seem
too formal, but once you have ‘broken the ice’,
their relationships are more open and warm
towards foreigners.
 Europe
• Very huge size off apparel market i.e. 350
billion US Dollars.
• Indian culture is easily accepted in most of the
European countries.
 Size of the global apparel market in 2012

US Billion Dollars
EU-27
United States
China
Japan
Brazil US Billion Dollars
India
Russia
Canada
Australia
Rest of the world
0 50 100 150 200 250 300 350 400
 Per capita expenditure on apparel worldwide in 2012 and 2025, by region (in U.S. dollars)

1800
1600
1400
1200
1000
800
600 2012
2025
400
200
0
 PESTAL Analysis of Fabindia
Political and Legal
FabIndia has faced government and legal issues like tax
policies, employment laws, overworked young people
trade restrictions etc.
Economic and Demographic
Indian handloom industry plays a vital role with a
contribution of up to 24% of total industrial production
index, earns 27% of country’s total export revenue and
employs almost 20 million people in the country. Within
this sector, cotton weaving contributes up to 90% of
total production
Social and Cultural
Fabindia connects very well to the social strata of the
society as it always maintains its ethnic feel in its
cloths.
Technology
• Fabindia is known for its handloom products.
• All their clothing products are basically hand loomed.
• Very less use of machines and other technology.
• More of ethnic and traditional methods of production.
How???
Franchise model and selling in other stores

• Higher brand awareness and attracts

consumers towards handcrafted apparel.
• Reduces investment in Tier 1 and metros
where real estate prices are high.
• Consumers can directly compare brands in
same segment.
Promotional Activities
 Fabindia Business Strategy
Marketing Strategy
 Fabindia has three kinds of stores: premium, regular,
and concept stores.
 Fabindia stores has a distinct ambience, pick store
location carefully and choose building to create a
unique consumer experience.
 Inside, the stores’ aesthetic highlighted a connection to
all things natural and store personnel were encouraged
to wear clothes that fit with the firm’s ideology.
 Advertise in the local newspaper regarding opening of
new store.
Finance Strategy
Store manager will allowed to be entrepreneurial.
Each store manager will allotted a budget that could be
used to order goods and meet operational expenses.
Supply chain Strategy
 Fabindia maintained a comprehensive central online
catalog with details and prices of all Fabindia products.
Fabindia use referrals for acquiring new supplier from
existing supplier.
They give first trial order, If their performance up to
that point is satisfactory, then they give regular orders.

HR strategy
 They hire people largely through referrals from existing
employees.
Candidate must have commitment to the Fabindia
ideology.
 Action plan
• Think Global and act Local

• E-Retail and Online Trial Room

• High Search Rankings

• CSR Weekend Promotion: showcase craftsmen

and tie up with local retailers
Online Trial Room
Online Trial Room
High Search Rankings
 Action plan
• Increase efficiency of existing stores
In last five years operational expanses has increased from 21.8
% to 26.04 % of revenue. It has reduced the profitability of
organization. An expected saving of Rs 55 million expected.

• Increase Export Activity

Exploring new market and clients may result in better results.
Additional revenue can be generated by focusing on exports.
• Setting up new store (with internal investing)
Fabindia has reserves and surplus of Rs 338.51 million. Rental cost of new
store would be Rs 19.2 million per year
15 stores can be established providing additional revenue of Rs 450 million
per year. Assuming average return per store as Rs 30 million
• Including more product line
In last two years organics revenue has seen a growth of 100 times contributing
Rs 25 million to revenue. Expected growth opportunities and additional
revenue could be huge. Assuming moderate growth of 10 times in next two
years may result in 250 millions of revenue and 500 million in next 5 years.
•  Increase advertisement and marketing of Fabindia
products
Advertisement and spreading awareness could result in 5-10% increase
in sales. Expected returns could be 125 millions per year by
advertisement budget of Rs 50 million (0.03 of sales revenue) which is
far below than industrial norms of 1 to 1.5 percent.
THANK YOU