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September 9, 2012
Confidential
Table of Contents
4 MARKETING STRATEGY 24
6 COMPETITIVE LANDSCAPE 46
8 SWOT 52
FabIndia
Evolution • Founded in 1960 by John Bissell to market the diverse craft traditions of India, Fabindia started out
as a company exporting home furnishings. 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.
Present Situation • Today, with a pan-India presence, Fabindia is the largest private platform for products that derive
from traditional crafts and knowledge. A large proportion of these are sourced from villages across
India where the company works closely with the artisans, providing various inputs including design,
quality control, access to finance and raw materials.
• The company now plans to scale up Number of stores. A critical part of that expansion plan is to
take the brand to tier 2 and 3 cities through a new format called micro stores. These are smaller
stores, which do Rs. 50 lakh turnover a month, about 600-800 square feet, work on a single shift
and are not open on Sundays.
• Add new product lines such as furniture, jewelry and personal care products and even organic food
WIDTH
Home
Garments Body Organic Food
Furnishings
(70%) Care (3%) (2%)
(25%)
•Maternity wear
RETAIL STRATEGY
• Premium
• Regular
Type of Stores • Concept
• Online
BUSINESS STRATEGY
Infusion of Funding
To aid the rapid growth,
FabIndia will raise equity
either through IPO or Private
Placements
Micro stores have a monthly turnover of 40-50 lakhs only and occupy an area of less than 800 sq ft
CAS-COD-Prez-Date 13 Copyright © 2009 Monitor Company Group, L.P. — Confidential
Confidential
BUSINESS MODEL
Business Model • FabIndia's relentless focus on effective direct SCM forms the core of its business model.
• Follow a social, partnership based procurement process
• Its strategy is to procure products directly from rural weavers and also making them
direct shareholders in the company
Fabindia manages a direct and effective SCM with more than 40000 weavers and artisans
ANSOFF MATRIX
• It has plans to open stores in new markets such as • The company has also ventured into healthcare with its
South Africa and Bahrain teeth-whitening ayurvedic product
• Fabindia plans to increase its presence in B-category
towns by opening ~40 micro stores this year
MARKETING STRATEGY
MARKETING MIX
Description
Product • FabIndia is India's largest private platform for products that are made
Existing Markets
BRAND STRATEGY
Customer Profile
A delighted Customer is our Best Brand Ambassador”
15%
Repeat
USP : quality of the fabric and the cultivated image of ‘Indianness’
Existing Markets
customers
Does not follow any customer acquisition strategy: focuses on 85% Other
customer retention
posters
•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
SOURCE: Interview of Mr. William Bissel, MD, Fabindia published in The Economic Times, Jun 2011
• 75% Delightful
• 15% Good
Shopping Experience at the Store
• 5% Average
• 5% Needs improvement
ONLINE STRATEGY
Focus on
Foreign
Markets
Options for
Internet
2nd and 3rd
Campaigns
tier towns
Online Strategy
Partnership
Time Harried
with major
Upwardly
online
Mobile
retailers
ONLINE EXPERINCE
LEARNINGS
Q&A