Pearl Academy, New Delhi

Fashion Business Management

(2014-2018)

Research Methods II

Consumer Preference for Fabindia

Submitted to

Mrs. Vasundhra Gupta/Mrs. Usha Aggarwal

Submitted by

Himali Lalwani, Shreya Tewari and Akshit Gulati

Acknowledgement
We would like to acknowledge a number of valuable contributions to this project.
First and foremost, we would like to express our sincere gratitude towards our mentors Mrs.
Vasundhra Gupta and Mrs. Usha Aggarwal without whose valuable guidance and support, it
would have been impossible to make this project. Their valuable inputs during the log process
were helpful and enriching. They have been a consent source of inspiration, guidance, support
and encouragement.
We would like to pay our regards and thanks to library members, Pearl Academy of Fashion
for giving us constant and all possible support whenever asked for.
Last but not the least we would like to thank our family and friends for providing us the moral
support during the course of this report.

Table of Contents
1. Executive Summary
2. Background Study
2.1 Introduction
2.1.1 Origin
2.1.2 History
2.1.3 Vision
2.1.4 Mission
2.1.5 Philosophy
2.1.6 Organic Certification
2.1.7 Sales Analysis
2.2 Marketing Mix
2.2.1 Product
2.2.2 Place
2.2.3 Price
2.2.4 Promotion
2.3 Competitors
2.3.1 Khadi Gramudyog
2.3.2 Central Cottage Industries Emporium
2.3.3 Anokhi
2.3.4 Kilol
2.3.5 Good earth
2.4 Competitors Edge
2.5 Primary Study
2.6 SWOT Analysis
2.7 PEST Analysis
3. Literature Review
3.1 Home Furnishings
3.2 Organic Food
3.3 Personal Care Products
3.4 Consumer
3.5 Consumer Behavior
3.6 Consumer Behavior in Context of the Products
3.7 Promotion
3.8 Types of Promotion
3.9 Knowledge Gap
4. Research Methodology

1
2-12

13-18

18

5. Data Analysis and Findings

19
6. Conclusion and Recommendations
37
7. References
37
8. Bibliography
38
9. Annexure
40

List of Tables
1. Sales Analysis
2. Products of Fabindia
3. International Presence of Fabindia
4. Products of Khadi Gramudyog
5. Products of Central Cottage Industries Emporium
6. Products of Anokhi
7. Products of Kilol
8. Products of Good earth
9. Competitors Edge
10.Testing for mean
11.Testing for mean
12.Chi-square
13.Annova

List of Graphs
1. Sales Analysis
2. Reasons for Buying Organic Food
3. Demographic Factors
4. Psychographic Factors

List of Figures
1. John Bissell
2. Organic Certification
3. Home furnishings

4. Organic food
5. Personal care products

Executive Summary
Fabindia has a wide variety of product lines ranging from garments to home furnishings. The brand
has a good footfall in comparison to its competitors like Khadi Gramudyog, Good earth, Kilol, Anokhi
and Central Cottage Industries Emporium. However, it is observed in the following study that out of
all the product lines of Fabindia, home furnishings, organic food and personal care products are less
preferred than product lines like garments, accessories and gift sets.

Promotion refers to the activity which helps in communicating the product, brand or any service
to the consumers. After the primary and secondary research, it was found that Fabindia lacks in
promoting the home furnishings, organic food and personal care products less than its other major
product lines.
The research has been done accordingly and it is recommended that Fabindia should expand itself
by opening separate or more stores for home furnishings, organic food and personal care products
so that the consumers get to know more about the product lines which will further increase their
sales.

2. Background Study:
2.1. Introduction:
2.1.1 Origin
John Bissell previously worked
as a buyer for Macy's, New
Fig.1. John Bissell
York and came to India in
Source: Author
1958, as a consultant for the
Ford Foundation to advise the
Government of India to run Central Cottage Industries
Corporation. He was then given a two-year grant to instruct
Indian villagers in making goods for export. He firmly
believed in the emerging Indian textile industry and was
determined to showcase Indian handloom textiles with a way to provide
employment to traditional artisans.
In 1964, Bissel met British designer Terence Conran, whos newly established
home furnishing retail company Habitat, soon
Fig.2. Fabindia Logo
became one of their biggest customers. Meanwhile it
also established a distribution network in the United
Source: Author
States, supplying their products to mom-and-pop
stores.

2.1.2 History
Fabindia was founded in 1960 by John Bissell to market the
diverse craft traditions of India. It started out as a company
exporting home furnishings. The first Fabindia retail store
was opened in Greater Kailash, New Delhi fifteen years later
that is in 1975.
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 Fabindias
commitment to traditional techniques and skills was added in 2004, with
personal care products following in 2006. The handcrafted jewellery was
introduced in 2008.
1

2.1.3 Vision
The vision of Fabindia is to celebrate India and endeavor to bring all that people
love about India to the customers around the world.

2.1.4 Mission
The main mission of Fabindia is to:

Harness the transformative power of a well-run business committed to

profitable growth in support of Fabindias vision.
Strengthen and support the community of customers, designers, artisans,
farmers, makers and entrepreneurs inspired by India.
Give the customers the products that delight them by interpreting Indias
rich heritage and traditional knowledge, while protecting the natural
environment.

2.1.5 Philosophy
Fabindia was founded with a strong belief that there was a need for a vehicle for
marketing the vast and diverse craft traditions of India and thereby help fulfil the
need to provide and sustain employment. It blends indigenous craft techniques
with contemporary designs to bring aesthetic and affordable products to todays
consumers.
Fabindias endeavour is to provide customers with hand crafted products which
help support and encourage good craftsmanship. The 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 the maximization of the handmade element in the products,
whether they are handwoven textiles, hand block printing, hand embroidery or
handcrafting home products.

2.1.6 Organic Certification Fabindia Categories of Food Products Products displaying our Green logo are 'Fully Certified' Organic. All
processes, from growing to preparing to packing have been done
according to National and International standards, verified by
Fig.3. Fully
accredited agencies.
Certified Logo;
Source: Author

Products displaying our Blue logo are 'In Conversion'.

Fig.4. In
Conversion Logo;
Source: Author

This
means
that the

farmer is using purely organic techniques, and has registered and is complying
with set standards. Farmland must be managed organically for about 3 years
before it can be fully certified.

Products displaying our Yellow logo are 'Natural'. This category

contains products produced by small farmers who use purely
organic techniques, but who have decided to not yet register for
certification. It also includes some processed foods, which do
Fig.5.Natural Logo;
not contain any synthetic preservatives, colors, flavors or
Source: Author
additives.

National and International Standards India's organic certification standards are set by the National Programme for
Organic Production (NPOP), which are based on standards set by the
International Federation of Organic Agriculture (IFOAM).
In India, there are a handful of certifying agencies accredited by NPOP. Farmers
and producers must register with one of these agencies, who will in turn verify
whether NPOP standards have been met.
For certified Organic products, look for a
certified agency's logo, for example SGS, and
NPOP's India Organic logo.
Fig.6. India
Organic Logo;
Source: Author

Fig.7. SGS Logo;

Source: Author

2.1.7 Sales analysis

The percentage of business extracted from Apparel and Home in Fabindia:

Table 1. Sales Analysis; Graph

1. Sales; Source: Author

An analysis was made according to the secondary research made and it was found that the
business of home accessories and organic food is less preferred by the customers as
compared to garments and jewellery.

2.2. Marketing Mix:

2.2.1 Product

Table 2. Products of Fabindia;

Source: Author

1. Fabindias products are its differentiating factor and it has made sure that the
quality and style of the product is maintained over the years.

2. It always maintains the ethnicity of its products.

3. It has a wide range of products ranging from garments to organic food. All
the products have one factor in common; they are handmade and thus they
support artisans.

2.2.2 Place
1.

It has 177 stores across India and it is trying to increase its coverage in
order to make sure that the products are available at large number of places.
2. It has different type of stores according to the products stored.

International Presence:
S.No.

Number of stores

Countries

India

177

Italy

Mauritius

Nepal

Singapore

UAE

Bhutan

Table 3. Countries and Number of Stores; Source: Author

2.2.3 Price
1. Fabindias product range enables it to provide a wide range of products at a
wide price range.

2. It has tried to make sure that the customers cost remains affordable and
gives value for money. To this end it has expanded its range of garments
starting from Rs. 200 to R+s. 2000 in order to provide something for its
customers.

2.2.4 Promotion
1. Fabindia has traditionally relied on word of mouth advertising. It believes that
product speaks for itself and this strategy works very well.

2.

The only problem with the above stated strategy is that the
customers dont get to know the location of the nearby stores. Therefore, to
overcome this problem, various tools such as mobile marketing and newspaper
advertisements are used to promote the brand well.

2.3. Competitors:
2.3.1 Khadi Gramodyog Khadi work was started in the Bassi block by Charkha Sangh in 1950. Charkha
Sangh handed over the work to Rajasthan Khadi Sangh. This block level
institution was established by Rajasthan Khadi Sangh and came into
operation on 1st April 1967 towards fulfilment of its decentralization
programme.
The aim of this institution was conceived to develop all the villages of the
block through the Khadi and Village industries and other constructive
activities. The name of the institution was chosen to be Khadi Gramodyog
Saghan Vikas Samiti.
The ultimate aim of the institution was to bring development to all the
villages. Khadi Gramodyog Saghan Vikas Samity also looks to achieve the
wider objectives in production of Khadi.

Garments

Cotton
Woolen
Ready wears

Home Furnishing

Mats and Rugs

Bedsheets
Flooring Materials

Gifts

Handicrafts
Handmade Papers
Table 4. Products of Khadi
Gramudyog; Source: Author

2.3.2 Central Cottage Industries Emporium

The World famous Central Cottage Industries Emporium is the Indias
window to the world for nearly over 60 years for authentic handloom and
handicraft products. In 1952, cottage was conceived by a band of dedicated
art lovers and their consistent endeavor led to the creation of Cottage
the abode of Indian handloom & handicrafts that helped to restore the crafts
persons pride in their work, recognized their genius and gave them a viable
and honored future.
Sixty years down the lane, Cottage with flagship showroom in Delhi and
showrooms in Mumbai, Kolkata, Chennai, Bengaluru, stands tall helping
India and the world, access to the finest crafts with an assurance of
authenticity, beauty and value, setting standards in aesthetics and design.

Garments

Dress Fabrics

Home Furnishing

Home Dcor and Furnishing

Gifts

Art Objects
Bankura Silvers
Decorative and Gift Items

Organic Food

Tea and Herbals

Accessories
Table 5. Products of Central Cottage Industries Emporium;
Source: Author

2.3.3 Anokhi Anokhi's roots lie in Jaipur, a city whose founders were enlightened patrons
of the arts and crafts. Skilled craftsmen were invited to settle here and were
ensured a secure livelihood. In the Jaipur tradition, Anokhi tries to maintain
7

an open and honest relationship with its crafts persons. It helps them to
work in conditions of their own choosing and commits itself to providing
them with sustained work.
The hand block is carved out of wood and is the simplest of printing devices.
Dyeing with vegetable colors is the oldest of coloring techniques. As pioneers
of hand block printing for the export market, Anokhi has built on these for
the last thirty years.
Anokhi has a state of the art work unit, with more than 200 sewing machines,
dry cleaning plants, and checking and packaging units. The company deals
with more than ten different printing units and two dyeing units which have
largely hereditary practitioners of their respective craft.

Garments

Dresses
Tops
Jumpers and Cardigans
Jackets and Coats
Skirts
Trousers

Accessories

Table 6. Products of Anokhi; Source: Author

2.3.4 Kilol Kilol plays around with delicate traditional designs to give them a modern
interpretation. Playing with conventional weaves, it creates contemporary
outfits that comfortably fit your daily routine and casual outings.
Kilol Fabrics Pvt. Ltd. was founded in the year 1986, when Mamta Mansingka
took a non-descript garage in Indore (M.P.) and turned it into the factory of
her dreams with a single printing table and one kaarigar (printer). The fusion
of hand-woven borders with hand block printed motifs gave Kilol its identity
and thus, began a journey of creating ethnic wear that is contemporary and
comfortable.
Kilol's retail chain currently comprises 10 stores. With its head office and
production unit based in Jaipur (Rajasthan), it has a wholesale department
to cater to individual outlets and an export department to address
worldwide shipping.

Sarees
Top
Suits
Dress Materials
Mix and Match
Western Clothing
Kurta
Pants
Cushion Fillers

Garments

Home Furnishing

Table 7. Products of Kilol; Source: Author

2.3.5 Good Earth Established in 1996 with its first store at Kemps Corner, Mumbai, Good Earth
set standards for stylish luxury retail across India.
Anita Lal, founder and creative director, believes that true luxury is in the
detail of everyday living; it is being surrounded by things that are natural and
hand-crafted with designs that elevate the spirit.
They celebrate the heritage of the Indian sub-continent and of surrounding
areas across Asia by creating unique design stories.
Their values are based on the values of sustainability. Sustaining tradition
and the ecology is a core value.

Home Furnishing

Home Dcor
Cushions

Gifts

Dinnerware
Tea Time
Coffee Break
Serve ware
Glassware and Bar

Personal Care Products

Bed and Bath

Wellness

Garments

Kids
Table 8. Products of Good earth; Source: Author

2.4. Competitors Edge:

Competitor
s

Products

Khadi
Gramudyog

Cotton Products,
Woolen Products,
Poly Vastra,
Flooring Materials,
Khadi
Readyweares,
Khadi Bed sheets,
Mats & Rugs

Central
Cottage
Industries
Emporium

Art Object, Bankura

Silver, Tea And
Herbals, Dress
Fabrics, Garments,
Accessories, home
dcor and furnishing
, decorative and gift
items, crafts

Price

USP
USP of the Khadi product is its ecofriendly
nature which leaves behind near zero
carbon footprint.

Art objects
950 19350
Bankura silver1452-24839
Tea and herbals
90 407
Dress fabrics
-135 -7948
Garments 940
12240
Accessories 770
41191 Home
furnishing 40
153356
Gift items - 36
446
Crafts - 30936750

10

Central Cottage Industries Emporium is the

single largest emporium of the country,
which is the perfect showcase of the
traditional Indian art and crafts.
Following are its major attributes:
Most authentic source of traditional
Indian art
Largest collection of products
Flagship showroom in major cities like
Mumbai, Bengaluru, Kolkata, Chennai
etc.

Most popular among foreign tourists

Offering artists, artisans and craftsmen
the most viable and direct access to the
markets
Securing the future of artisans and
craftsmen who otherwise would fade
into oblivion

The stamp of ethnicity, authenticity and

quality

Instrumental in reviving age-old Indian

Anokhi

Womens wear, Mens wear,

Home
furnishing,

Kilol

Sarees, Western
Clothing, Suits,
Dress Materials,
Home Furnishings

Good
earth

Entertaining, living , bed and bath,

wellness, kids, gifts

crafts
Offers the best value for
money and complete
shopping experience
Womens wear:800- The USP of the store is that
4500 Mens wear:
everything here is made out of
900 3000
natural fabric and dyes. It
Furnishing - 1000- houses eco-friendly clothes in
12800
the form of sarongs, skirts, tieup tops, trousers and pants
that have been dyed with
vegetable dyes. The collection
here i chic and unique and
would add a certain class and
style to your wardrobe
Promoting hand block print,
Sarees:3000empowering
craftspeople
6500
Western
across India as well as upcoming
wear:800-2000
designers who work in the field
suits:2000-6500
of craft and keying in the
Dress
comfort for customers is our
material:20003500
USP. With an everextending
Home
playfulness into the new world,
furnishing:2003500
Kilol gets its design strength by
blending the old with new. A
dedicated, committed and a
strongly united team is the
greatest strength of Kilol.
Entertaining
850 9800
Living 10006800
Bed and bath
1200 19000
Wellness- 4505600
Kids 550
4400
Gifts 400 - 12500

Table 9. Competitors Edge; Source: Author

11

To produce, procure and sell

quality
handicrafts
and
handloom products and t
develop markets for these
products in India and abroad.
To continue to improve the
quality of Indian Handicrafts
and to upgrade and produce
new designs.
To strengthen and expand the
marketing network of the
organization.
To generate adequate returns
on Net Worth.
To manage trading activities so
as to optimize sales and
earnings
and
reduce
expenditure

2.5. Primary Study:

A visit to the DLF promenade was organized to research about the promotional
strategies of Fabindia

2.6. SWOT Analysis:

2.6.1 Strengths
The brand has maintained its Indian-ness with the authenticity of handwoven fabric for over years.

The brand has provided sustainable employment for the skilled artisans in
rural areas.

The fact that the brand strongly believes in word of mouth marketing which
has proved very effective.

2.6.2 Weaknesses
The brand is losing out on attracting new customers as it hugely depends on
repeat purchases.

Not enough experienced personnel to push Fabindia towards growth in the

retail sector.

Limited global penetration despite huge potential in NRI market.

2.6.3 Opportunities
The brand needs to tap the potential of organic foods by creating awareness
about their merits.

Display of FABINDIA products in MBOs and collaborating with various

construction groups would give.

Geographic expansion in US and UK with huge Indian population.

2.6.4 Threats
Development of state owned co-operatives in the same
segment can be serious competition.

Consumers tilt towards foreign brands in the lifestyle

segment.

Not in touch with Fashion Trends.

2.7. PEST Analysis:

2.7.1 Political and Legal
Fabindia has faced government and legal issues like tax policy, employment laws,
overworked young people, trade restrictions etc.

2.7.2 Economic and Demographic

Indian handloom industry plays a vital role with a contribution of up to 24% of the
total industrial production index, earns 27% of the countrys total exports
12

revenue and employs almost 2 million people in the country. Within this sector,
cotton weaving contributes almost 90% of the total production.

2.7.3 Social and Cultural

Fabindia connects very well to the social strata of the society as it always
maintains its ethnic feel in the products.

2.7.4 Technological
Fabindia is known for its handloom products. All their clothing products are
basically hand loomed. There is very less use of machines and other technology.
More of ethnic and traditional methods are used.

3. Literature Review:
3.1 Home Furnishing
Bed linens, curtains and bath linen like terry
towel cover the largest share of the home textile
in the domestic market. Indian home textile
products have come of age. The product range
comprises of furnishing fabrics and made-ups of
Jacquard and Dobby weaves of various types of
fiber like cotton, polyester, rayon blends,
chenille, flax, silk, jute, linen and other blends.
High quality of fabrics used has added a new
dimension. It offers further value addition in
terms of hand painted fabrics and embroidered
fabrics.

Fig. 1.Home Furnishings; Source:

Author

The products are well known for diversity, weave, color and texture. Following are the main
products:

Bed linen, Table linen, Kitchen linen, Toilet linen

Beddings
Bed covers, Bed spreads
Cushions, Cushion covers, Duvets
Quilts and quilting materials
Curtains
Terry towels
Comforters
Carpets and other floor coverings
Blankets and Rugs
Mattresses
Upholstery
Other made-ups (ace global private limited , 2009)
13

3.2 Organic food Organic food is safer, healthier, and usually chemical-free
as there is no usage of artificial substances such as
pesticides, herbicides, and genetically modified organisms
(GMOs).

Fig. 2. Organic Food; Source:

Author

They are grown in healthier soil and taste better than their
conventional counterparts. Hence, the popularity of such
produce is picking up volumes in recent years. There is no
better choice for one's consumption than organic produce.
(Organic food)

Benefits:-

Prevents premature aging

Reduces risk of heart disease
Boost immune system
Ensure safe and healthy world for future generation
Tastes better than non-organic food
Promotes animal welfare
Reduces presence of pesticides
Prevents cancer (organic facts)

Types of organic food:

Organic Vegetables and Fruits

Organic Dairy Products
Organic Fish & Meat
Teas, Natural drinks and Sweeteners
Spices, herbs and seasonings
Grain, flours and Pastas
Seeds and pulses
Soups and Snacks
Pickles and Chutney
Ayurvedic (Satyamorganics)

3.3 Personal Care -

14

Personal care products are made up of only natural ingredients and are manufactured with
appropriate processes to maintain ingredient purity
(Npainfo). They are safe and avoid involvement of any
ingredient which is suspected to be harmful for
humans. These products are always made of
biodegradable
ingredients
and
the
most
environmentally sensitive packaging. They use no
animal testing in their development.
Types of personal care products:

Fig. 3. Personal Care Products; Source:

Author

Hair Care
Bath and Body
Baby and Kids
Health Care
Soaps and Shave

3.4 Consumer An individual who buys products or services for personal use and not for manufacture or
resale is known as a consumer. He can make the decision whether or not to purchase an item
at the store, and someone who can be influenced by marketing and advertisements. Any
time someone goes to a store and purchases a toy, shirt, beverage, or anything else, they are
making that decision as a consumer.

3.5 Consumer Behavior The study of consumer behavior is a study of how individuals make decisions to spend their
available resources (time, money, effort) on consumption related items. It includes the study
of what they buy, why they buy, when they buy it, how often they buy it and how often they
use it. (Kanuk and Schiffman, 2011)
Buying decision of consumers also depends on the following factors:-

Selective exposure
Selective attention
Consumer interpretation
Selective retention

3.6 Consumer Behavior in Context of the Products Consumer behavior is not constant. It changes with a change in the product he/she
is going to buy. The following explain the behavior of a consumer in terms of home
furnishings, organic food and body care products:
(a) Factors Affecting the Purchase of Home Furnishings

15

Fig. 4. Factors Affecting the Purchase of Furniture; Source: Al-Azzam (2014)

Social factors affecting the purchase of furniture:

Reference Groups - Reference group can be defined as any person or group of

people who significantly influences an individuals behaviour (Al-Azzam, 2014).
Individuals are a part of various groups which have relation with the
assessment, aspirations and behaviour of another individual. Therefore, a
reference group has the potential to mould the attitude and behaviour of a
consumer.
Family Family is one of the most important social factors which affect the
purchase of furniture. Furniture is a necessity and therefore, it is important to
buy the type of furniture which suits the family according to their size,
preference and need. The size of the family mainly increases the need for the
purchase of furniture.
Evaluative criteria of purchasing home furnishing products:

Price - Furniture industry has a wide range of customers from low income to
high income (Al-Azzam, 2014). Every consumer tends to buy furniture which
suits his economic conditions. Therefore, while buying an expensive yet
necessary commodity like furniture, price is one of the main factors which affect
the purchasing decision of a consumer.
Color Color is a source of relaxation. Colourful furniture makes a person
calm and satisfied when he returns his home or goes to his office. It makes
the furniture look more interesting and attractive. Finally color analysis
constitutes one of the areas of marketing about consumers choice in
dissimilar cultures and its perception of colors (Al-Azzam, 2014).
Quality Furniture represents the personality of the owner and therefore, the
quality of the furniture defines its superiority, excellence and refinement. The
right quality of the furniture is judged through the type of wood used, types
of construction joints, external surface construction and overall construction
details.
16

(b) Factors Affecting the Purchase of Organic Food Demographic Factors:

Age In case of organic food, age matters the most. People who are usually
young or middle-aged tend to buy more organic food than children. This is
so because young people wish to avoid junk food as they want to stay fit
whereas, children love to eat junk food. Therefore, age is an important factor
which determines the purchase of organic food.
Income Level The income level of consumers also affects the purchase of
organic food. Higher income households purchase organic products more
frequently (Paul and Rana, 2012).
Education Level Another factor affecting the purchase of organic food is
the education level of an individual. The consumers who are less educated
tend to buy less or no organic food as they dont know the advantages and
disadvantages of the food and
vice-versa.
Health Benefits:
Other than the demographic factors, the
major factor which affects the purchase of
organic food is health. Keeping in mind the
factors like age, education level and level
of income, health is stated to be given
more weightage. Deterioration in
Graph 2. Reasons for Buying Organic Food;
human health was a main reason to
influence consumers to think about
Source: Paul and Rana (2012)
organic food. (Paul and Rana,
2012). The consumers are always ready to invest more in healthy, tasty and effective
food and therefore, health is the major factor for buying organic food.

Availability:
Availability also, is one of the chief factors which encourage the purchase of organic
food (Paul and Rana, 2012). With the growing reasons to buy organic food, brands have
started working upon their marketing strategies and hence, the conventional
supermarkets and large retail outlets have increased the availability of organic food
which further influences the consumers to buy more organic food.

Others:
The other factors which affect the purchase of organic food are environment friendly
packaging and environment friendly technology.

(c) Factors Affecting the Purchase of Personal Care Products Brand The consumers of personal care products specifically concentrate on
the brand of the product. It is believed that a famous brand delivers the best
17

type of personal care products. Since, the products are meant for taking care
of the body therefore, consumers tend to buy them from a known brand.
Quality The personal care products take care of an individuals body and
their skin type. Therefore, it is the tendency of the consumers to check the
quality of the products before buying them.
Price A rational customer always focuses on the price of the products
he/she is going to buy. Thus, before buying a product of a necessary
category like personal care, the consumers focus on the price.
Ingredients Consumers prefer to think about the ingredients of the
personal care products so that they dont turn out to be harmful for their
skins in the near future.
Availability The personal care products can be found at any supermarket or
general store or a small retail shop since they are a necessity. Therefore,
availability also affects the purchase of personal care products.

3.7 Promotion
Promotion refers to the activity which helps in communicating the product, brand or any
service to the consumers.

3.8 Types of Promotion

There are various types of promotion which help in reaching a wider area of consumers.
They are:

(a) Personal Selling:

It is the most effective way of selling a product as it helps in building a
customer relationship. It is very expensive and time consuming but it is good
for high value or premium products.
(b) Sales Promotion:
It includes various contests, discounts, freebies etc. to attract the customers.
(c) Public Relations:
It is a deliberate and planned effort to establish a mutual understanding
between the company and the public.

3.9 Knowledge Gap

Promotion of all product lines is extremely important for a brand to bring customers at
their doorsteps and convey to them what the brand is all about. Fabindia lacks in
promoting their product lines: home furnishings, organic food and personal care and
therefore, the same are preferred less by the customers of Fabindia.

4. Research Methodology:
4.1 Research objective
18

To understand the customer preference of garments and jewellery over home

furnishings, personal care and organic food.

4.2 Research design The research design is exploratory because it relies more on the secondary
research and is qualitative in nature. The knowledge obtained is limited.

4.3 Data collection methods and tools The data collection methods are primary sources which include tools like
questionnaires and interviews; secondary sources which include tools like books,
online journals and online newspapers.

4.4 Sample design 4.4.1 Sampling frame the sampling frame is the potential customers of Fabindia
4.4.2 Sampling unit the sampling unit of potential customers of Fabindia is Delhi
4.4.3 Sampling size the sample size is 100 respondents
4.4.4. Method of sampling the method of sampling used is probability stratified
random sampling
4.4.5. Sample the sample has respondents of age group 18 to 50

5. Data Analysis and Findings:

5.1 Data Methods and Tools
5.1.1 Data Methods Primary and Secondary Data
5.1.2 Data Tools Primary: Questionnaires and Interviews
Secondary: Books, Journals and Newspapers

19

5.2 Findings and Interpretation

5.2.1 Demographic Factors
(a) Q1.

Graph 3. Age of Respondents; Source: Author

Interpretation: From the above pie chart it is analyzed that 30% of the total
respondents that of the age group of 18-23 years and there are only 14% of
respondents that belong to the age group of 41- 46 years.
(b) Q.2

Graph 4. Location of the respondent; Source: Author

20

Interpretation: From the above pie chart it is analyzed that 21% of the total
respondents reside in West Delhi and there are only 12 % of the total
respondents that reside in East Delhi.
(c) Q3.

Graph 5. Marital Status of Respondents; Source: Author

Interpretation: From the above pie chart it is observed that 50 % of the total
respondents are married and only 1% of the total respondents are separated.
(d) Q.4

Graph 6. Education Level of the Respondents; Source: Author

21

Interpretation: From the above pie chart it is analyzed that 47% of the total
respondents are post graduate and only 4% of the total respondents have
other kind of education level.
(e) Q5.

Graph 7. Occupation of the Respondents; Source: Author

Interpretation: From the above pie chart it is analyzed that 34% of the total
respondents are students and only 12% of the total respondents are service
man
(d) Q.6

Graph 8. Monthly Household Income of the Respondents;

Source: Author

22

Interpretation: From the above pie chart it is observed that 29% of the total
respondents have monthly income of Rs. 2 lakh and above and only 14% of the
total respondents have Rs 80,000 1, 00,000
(e) Q.7

Graph 9. Family type of the Respondents; Source: Author

Interpretation: From the above pie chart it is analyzed that 61% of the total
respondents have nuclear family and only 39% of the total respondents have
joint family.
5.2.2 Psychographic Factors
(a) Q8.

Graph 10. Lifestyle; Source: Author

23

Interpretation: From the above graph it is analyzed that 24% of the total
respondents mostly prefer fashionable kind of lifestyle and only 15% of the total
respondents prefer traditional.

(b) Q.9

Graph 11 Time Spent by the respondent. ; Source: Author

Interpretation: From the above graph it is observed that 24% of the total
respondents spend their time with their family and only 2% of the total respondents
spend their time however they wish to.

(c) Q.10

Graph 12 Shopping Preference; Source: Author

24

Interpretation: From the above graph it is analyzed that 39% of the total
respondents shop from malls and only 1% shop from other places

5.2.3 Testing for Mean

(a) Q11.

Table 10. Testing for Mean. ; Source: Author

Interpretation: According to the above table, it is analyzed that the least

preferred brand among all the given brands is Kilol. However, the most
preferred brand is Fabindia.
Therefore, it can be concluded that the customer preference for Fabindia is
more than Anokhi, Good earth, Central Cottage Industries Emporium, Cottons,
Khadi Gramudyog and Kilol.
The data is accepted for the population as the significance level is less than
0.05
(b) Q12.
(i) Personal Care Products:

25

Table 11. Testing for Mean. ; Source: Author

Interpretation: As shown in the above table, it is observed that out of the given
five factors namely price, quality, brand, marketing and peer reviews which
affect the purchase of personal care products, the quality of the product
matters the most when a consumer buys them.
The data is accepted for the population because the level of significance is less
than 0.05
(ii) Organic Food:

26

Table 12. Testing for Mean ; Source: Author

Interpretation: According to the table, it can be observed that among the five
factors given in the table, quality is the most preferred factor which affects the
purchase of organic food. Therefore, it can be concluded that consumers see
the quality of organic food before buying it.
The data is accepted for the population as the level of significance is less than
0.05
(iii) Home Furnishings:

27

Table 13.Testing for Mean; Source: Author

Interpretation: As shown in the table, price is the factor which affects the
purchase of home furnishings by the consumers. This means that the
consumers prefer to give importance to the price of home furnishings before
buying it.
The data is accepted for the population as the level of significance is less than
0.05
5.2.4 Chi-square Test (Q13.) (a) Age and Product:

28

Table 14.Chi-square ; Source: Author

Interpretation: According to the above table, it can be analysed that out of the
total sample of 100 respondents, 30 consumers are between the age group of
18-23 years. However, out of the 30 consumers, 16 consumers prefer to buy
garments from Fabindia, whereas, 7 consumers buy accessories, 3 consumers
buy home furnishings, 1 consumer buys organic food, 1 consumer buys
personal care products and 2 consumers buy FABELS. This implies that
29

garments are the most preferred product of Fabindia by the consumers

between the age group of 18-23 years.
It is observed that the consumers between the age group of 24-29 years prefer
to buy garments. Out of the sample of 100 respondents, 21 consumers are
aged between 24-29 years. However, only 12 of them buy garments, 2
consumers buy accessories, 2 consumers prefer home furnishings, none of
them buy organic food whereas 4 consumers buy personal care products and
only 1 consumer prefers to buy FABELS.
The table indicates that out of 17 consumers aged between 30 35 years the
maximum number of consumers that is 7 preferred to buy garments from
fabindia instead of accessories, home furnishing, organic food, personal care
products and FABELS.
It is analysed that out of the 18 consumers between the age group of 36 41
years only 5 people prefer to buy garments from fabindia whereas the
purchase for the other products is comparatively low.
It is observed that the consumers between the age group of 41 46 years have
14 consumers out of which 5 consumers who buy garments from fabindia
instead of other products available at fabindia.
The data is rejected for the population as the level of significance is more than
0.05
(b) Income with Product:

30

Table 15. Chi-square; Source: Author

Interpretation: According to the given table it is observed that out of 20

consumers who have a monthly disposable income of Rs. 30000-Rs. 60000 the
majority of 7 consumers prefer to buy garments and the least purchased
product is organic food with no preference at all.
31

The table shows that out of 22 consumers with the monthly disposable income
of Rs. 60000 Rs. 80000, the most purchased product is garment with a
majority of 10 consumers. However, the least purchased products are organic
food and FABELS with the preference of 1 consumer each.
It is analysed that the 14 consumers with the monthly disposable income of Rs.
80000 1 lakh have a majority of 5 consumers who prefer to buy accessories
whereas the least preferred product of this group is FABELS with no
preference.
The table indicated that out of 15 consumers who have a monthly disposable
income of Rs. 1 lakh Rs. 2 lakh have the preference of buying garments with
a majority of 5 consumers whereas the least purchased products are home
furnishing, personal care and FABELS.
It is observed that out of 29 consumers who have a monthly disposable income
of Rs. 2 lakh and above have the buying preference for garments with a
majority of 19 consumers whereas the least purchased product is accessories
with no preference.
The data is accepted for the population as the level of significance is less than
0.05
5.2.5 Annova (Q14.) (a) Age and product:

32

33

Table 16. Annova; Source: Author

Interpretation: According to the above table, it can be observed that

garments, accessories and FABELS are most preferred by the consumers
ageing between 36-41 years. This implies that garments, accessories and
FABELS are sold more to these age groups as compared to other product
lines.
The data for the population is rejected because the level of significance is
more than 0.05
Whereas, in context to other product lines, it is found that home furnishings
and organic food are most preferred by the age group of 18-23 years.
The data for the population is rejected because the level of significance is
more than 0.05
The personal care products are preferred by the people ageing between 4146 years.
The data for the population is rejected because the significance level is more
than 0.05
(b) Income with product:

34

35

Table 18. Annova; Source: Author

Interpretation: In the above tables it is observed that the consumers with the
monthly disposable income of Rs. 30000 Rs. 60000 prefer to buy garments
and personal care products.
The data for the population is rejected for garments because the significance
level is more than 0.05. However, the data for the population is accepted for
personal care products as the level of significance is less than 0.05
The consumers who have the monthly disposable income of Rs. 60000 Rs.
80000 prefer to buy accessories and home furnishings.
The data for the population is rejected because the level of significance is more
than 0.05
It is found that organic food is preferred by the consumers who have the
monthly disposable income of Rs. 80000 Rs. 100000.
The data for the population is accepted because the level of significance is less
than 0.05
The consumers who have the monthly disposable income of Rs. 100000 Rs.
200000 prefer to buy FABELS.
The data for the population is accepted because the significance level is less
than 0.05
36

6. Conclusion and Recommendations:

6.1 Conclusion
On the basis of the findings in the above report, it can be concluded that garments
are more preferred than personal care products, organic food and home furnishings
which further states that the sales of the latter are less as compared to the former.
Also, according to the research, it can be concluded that Fabindia is the most
preferred brand amongst its competitors Khadi Gramudyog, Anokhi, Central
Cottage Industries Emporium, Kilol and Good earth.

1.2 Recommendations
1. The personal care, organic food and home furnishings product lines of Fabindia
should have a different store like that of garments and accessories so that the
consumers get to know more about the products.
2. The visual merchandising should be improved by showcasing a bit of each of the
above stated product lines in the windows so that they attract the consumers
and persuade them to visit the stores like garments, accessories and other
products of Fabindia.

7. References:

(2015), Fabindia. [Online] Available from: http://www.mbaskool.com/brandguide/lifestyleand-retail/2843-fabindia.pdf [Accessed: 5th February 2015]

(2015), Products. [Online] Available from:

http://www.khadigramodyogbassi.org/aboutus.php [Accessed: 5th February
2015]

Ace Global Private Limited. (2009). The Home Textile Furnishing Industry in India.
[Offline], [Accessed on: 25th February 2015]

Al-Azzam, A. (2014). Evaluating Effect of Social Factors Affecting Consumer

Behavior in Purchasing Home Furnishing Products in Jordan. [Online] eajournals,
2, p. 82 86. Available from: http://www.eajournals.org/wpcontent/uploads/Evaluating-effect-of-social-factors-affecting-consumerbehavior-in-purchasing-home-furnishing-products-in-Jordan.pdf [Accessed on:
22nd February 2015]

Fabindia (2015), About the company. [Online] Available from:

http://www.fabindia.com/intl/company/ [Accessed: 5th February 2015]
Fabindia (2015), 50 years of Fabindia. [Online] Available from:

Fabindia (2015), Philosophy. [Online] Available from:

http://www.fabindia.com/intl/philosophy/ [Accessed: 5th February 2015]

Fabindia (2015), Products. [Online] Available from:

http://www.fabindia.com/intl/products/ [Accessed: 5th February 2015]
http://www.fabindia.com/intl/50-years-of-fabindia/ [Accessed: 5th February 2015]

Huber, M. et al (2011). Organic Food and Impact on Human Health: Assessing the
Status Quo and Prospectus of Research. [Online] sciencedirect, 58, p. 8. Available
37

from: www.sciencedirect.com/science/article/pii/S1573521411000054 [Accessed

on: 24th February 2015]

Kanuk and Schiffman, L. and L. (1999). Consumer Behaviour. 6th Edition. New
Delhi: Asoke K. Ghosh, Printice Hall of India Pvt. Ltd.

Khanna, D. et al (2010), Merchandise Assortment and Merchandise Policy of

Fabindia. [Online] Available from:
http://www.slideshare.net/guest979637/cfakepathmerchandising-fabindia-ppt
[Accessed: 5th February 2015]

Kilol (2015), Kilol USP. [Online] Available from: http://kilol.com/content/aboutkilol [Accessed: 5th February 2015]

Mattas, K. et al (2007). Attitudes and Behaviour Towards Organic Products: An

Exploratory Study. [Offline], [Accessed on: 24th February 2015]

Organic Facts. Health Benefits of Organic Food. [Online] Available from:

www.organicfacts.net/organic-products/oragnic-food/health-benefits-of-organicfood.html [Accessed on: 23rd February 2015]

Rabolt and Solomon, N. and M. (2009). Consumer Behaviour in Fashion. 2nd

Edition. India: Dorling Kindersley Pvt. Ltd. [Accessed on: 23rd February 2015]

Thanyamon, S. (2012). Consumer Behaviour in Purchasing Home Furnishing Products in

Thailand. [Online] dspace.wul.waseda.ac.jp, p. 12-18. Available from:
https://dspace.wul.waseda.ac.jp/dspace/bitstream/2065/38112/1/ShokenShuron_2012_9_
Thanyamon.pdf [Accessed on: 23rd February 2015]

8. Bibliography:

http://www.slideshare.net/guest979637/cfakepathmerchandising-fabindiappt
http://www.fabindia.com/intl/products/
http://www.fabindia.com/intl/philosophy/
http://www.fabindia.com/intl/company/
http://www.fabindia.com/intl/50-years-of-fabindia/
http://www.slideshare.net/himalilalwani/savedfiles?s_title=cfakepathmerch
andisingfabindia-ppt&user_login=guest979637
http://www.mbaskool.com/brandguide/lifestyle-and-retail/2843fabindia.pdf
http://www.khadigramodyogbassi.org/aboutus.php
http://kilol.com/content/about-kilol
http://www.fabindia.com/intl/50-years-of-fabindia/
http://www.kilol.com/faq-category/about-kilol
https://www.academia.edu/1855102/A_report_on_Future_international_ex
pansion_of_Fabindia
38

http://www.slideshare.net/bestworkplacesconference/fabindia-8710610
https://www.academia.edu/4725090/Submitted_to_Prof._Jishnu_Hazra_Pro
ject_Report_Study_of_Fabindia_supply_chain_Submitted_by_Group_3_Intro
duction
http://www.slideshare.net/mayankbcl/fabindia-case-study-2
https://www.google.co.in/search?q=fab+india+marketing+mix&espv=2&biw
=1366&bih=600&source=lnms&tbm=isch&sa=X&ei=USzTVM2xHYfhuQSq4GgDQ&ved=0CAYQ_AUoAQ
https://www.google.co.in/search?q=fab+india+marketing+mix&espv=2&biw
=1366&bih=600&source=lnms&tbm=isch&sa=X&ei=USzTVM2xHYfhuQSq4Gg
DQ&ved=0CAYQ_AUoAQ#tbm=isch&q=kilol+products
https://www.google.co.in/search?q=fab+india+marketing+mix&espv=2&biw
=1366&bih=600&source=lnms&tbm=isch&sa=X&ei=USzTVM2xHYfhuQSq4GgDQ&ved=0CAYQ_AUoAQ#tbm=isch&q=anokhi+products

39

9. AnnexureThe survey is formed by the students of Pearl Academy of Fashion, New Delhi. The objective of the
survey is to understand the customer preference for fabindia.
Your participation will be appreciated. Please tick one option per question.
Q1. What is your age?
a) 18-23 years
d) 36-41 years
b) 24-29 years
e) 41- 46 years
c) 30-35 years
Q2. Where do you live?
a) North Delhi
d) East Delhi
b) South Delhi
e) Central Delhi
c) West Delhi
f) NCR
Q3. What is your marital status?
a) Single
c) Separated
b) Married
d) Divorced
Q4. What is your education level?
a) High School
d) M Phil / PhD
b) Bachelors
e) Others
c) Post Graduate
Q5. What is your occupation?
a) Student
d) Self-employed
b) Business
e) Others
c) Service
Q6. What is your monthly household
income?
a) Rs 30000 Rs 60000
d) Rs 1 Lakh - 2 Lakhs
b) Rs 60000 Rs 80000
e) Rs 2 Lakhs and above
c) Rs 80000 Rs 1Lakh
Q7. What is your family type?
a) Nuclear Family
b) Joint Family
Q8. Choose what best defines your lifestyle?
a) Modest
b) Fashionable
c) Independent
d) Conservative
e) Traditional
Q9. How do you spend your time?
a) Read Magazines/Novels
b) Browsing the net
c) Watching TV
d) Listening to music
e) Hanging out with friends
f) Spend time with family
g) Shopping
h) Others, please specify
Q10. Where do you shop from?
a) Shopping malls
b) Markets
c) Online
d) Other

40

Q11. Which brands do you prefer? (Rank your preference for each brand where 1 stands for the
least preferred and 5 stands for most preferred)
Brands
1
2
3
4
5
Fab India
Anokhi
Good earth
Central Cottage Industries
Emporium
Cottons
Khadi Gramudyog
Kilol
Q12. Rank the factors affecting your purchase for personal care, organic food and home
furnishings? (1 stands for the least preferred and 5 stands for most preferred)
Factors
Price
Quality
Brand
Marketing
(promotions)
Peer reviews

Personal Care

Organic Food

Q13. Which product do your buy from fabindia and why?

a) Garments
b) Accessories
c) Home furnishing
d) Organic food
e) Personal care
f) FABELS

Home Furnishings

Reason:-

Q14. Rank your preference for the following product lines of Fabindia.
Product Lines

Very
Interested

Interested

neutral

Garments
Accessories
Home
furnishing
Organic food
Personal care
FABELS

41

Slightly
Interested

Not at all
Interested