Title Layout

Presented by:Ashish - 114030Alan -114014Archit DeepanshuDivyanshuDhruv

Introduction It is an Indian chain store retailing garments, furnishings, fabrics and ethnic products

handmade by craftspeople across rural India. It is largest private platform for products that are made from traditional techniques, skills and hand-based processes.

Hand based processes has set Fab India apart from any other commercial brands. All Fab India products are natural, craft based, contemporary and affordable in price.

▪ Founded in 1960 By John Bissel▪ 1976: First retail store in Delhi▪ 1993: Second retail store in

Delhi▪ 1996: Third retail store in

Bangalore

• 2000: Non-textile range start• 2004: Organic Food introduced• 2006: Personal Care products• 2008: Handcrafted Jewellery

History of Entrepreneur (Bio-graphy)

▪ Mr. John Bissell was born in Hartford and educated at the Brooks School in North Andover, Mass., and at Yale. His love for India began as a child, listening to tales his father told of his time in India during World War II.

▪ After college, Mr. Bissell worked at Macy's, and began to like the look and feel of hand-woven fabrics.

▪ Those two interests merged in 1958, when he was given a two-year grant from the Ford Foundation to instruct Indian villagers in making goods for export. Once his grant expired, Mr. Bissell decided to remain.

▪ He founded a business, Fabindia Ltd. In 1960, that bought locally produced items like dhurrie rugs and exported them.

Contd…▪ Mr. Bissell married Bimla Nanda,

who served as social secretary for Chester A. Bowles and John Kenneth Galbraith when they were United States Ambassadors to India.

▪ Besides his wife, Mr. Bissell is survived by a son, William, who now runs Fabindia, and a daughter, Monsoon, both of New Delhi.

START OF FABINDIA▪ 1958 – John Bissell arrives in India on 15 august on a two year contract

from ford foundation to work with the nascent Indian crafts set up.▪ 1958-1960 – Travels across the country, meeting craftsmen.▪ 1960- Fabindia founded by bissel,incorporated as Fabindia inc in the us

in November▪ 1965 – Panipat’s A,S Khera becomes a supplier of carpets – a

connection that will be crucial to the Fabindia growth story.▪ 1976 – due to regulation registers as an Indian company; 40% of the

company is with shareholders and 60% with Bissell's family and friends. First retail store opened in greater kailash1, Delhi

CONTD.▪ 1976-90 – Fabindia become a global name, known for garments made from

hand printed fabrics.▪ 1994- second store at vasant kunj, Delhi▪ 1999- after died of john Bissell William takes over as MD , refocuses

attention to domestic market.▪ 2007- Fabindia hives off section to form artisans microfinance, a firm

investing in community based companies or supplier region companies.▪ 2009- Fabindia acquires 25% stake in Uk retail chain, east▪ 2010- Fabindia crosses 100 stores.▪ Now a days Fabindia exports to over 33 countries worldwide, to wholesalers

as well as retailers.

▪ 2007- Fabindia hives off section to form artisans microfinance, a firm investing in community based companies or supplier region companies.

▪ 2009- Fabindia acquires 25% stake in Uk retail chain, east▪ 2010- Fabindia crosses 100 stores.▪ Now a days Fabindia exports to over 33 countries worldwide, to

wholesalers as well as retailers.

Products▪ The major portion of Fabindia’s product range is textile based.▪ The non textile products were introduced to Fabindia in October 2000

and  Organic Food Products were introduced in July 2004 ▪ Fabindia’s introduced the authentic Personal care products in March

2006 and in 2008 it started handicraft jewellery. ▪ The textile-based product ranges ready-to-wear garments and

accessories for men, women, teenagers and children; bed, bath, table and kitchen linen; floor coverings, upholstery fabric and curtains. Cotton, silk, wool, grass, linen and jute are the basic fibres used.

Contd.▪ The Home Products includes furniture, lighting, stationery, tableware,

cane baskets and a selection of handcrafted utility items.▪ Organics products carries several types of cereals, grains, pulses,

spices, sugar, tea, coffee, honey, fruit preserves and herbs.▪ Fabindia's range of authentic Personal care products includes soaps,

shampoos, hair oils, pure oils, moisturisers, body scrubs, face packs, hair conditioners & special skin care products.

Products and ServicesGarments Home furnishingsHome linen

AccessoriesPersonal products

Organic products

Financial Analysis

• Financial aspects of Fabindia have been compared with Pantaloons• Though not a director competitor , it represents the Indian Retail

industry very well • Financials for its direct competitors such as Anokhi , khadi gram

Udhyog etc. were not available , restricting comparison• This assessment contrasts the performance of Fabindia with respect to

the biggest retailer of India • Hence, we get a sense of the feasible options available with FabIndia

to raise funds.

Interest Coverage Ratio

The interest coverage ratio of Fabindia is far higher than that of Pantoons. Hence , raising funds through debt is not a big challenge .

Interest Cost as % of Sales

The interest costs as a percentage of sales for Fabindia is far lesser than that of Pantaloons. Hence , raising funds through debt is again not a big challenge

Profit Margin Ratio (In%)

The PAT as a percentage of sales of Fabindia is higher than that of Pantaloons. Through retail industry works at low margins ,Fabindia’s ;margin are quite high. Hence ,raising funds through debt is not a big a challenge.

Financial Analysis Of FABINDIA• Change in customer consumption pattern and increased income per capita

has given boost to domestic sales of Fabindia. In last five years (2002-06), turnover of Fabindia has increased by 335% and profit by 422%.

• Fabindia’s vision is to expand to 200 stores and grow its revenue to Rs 8.6 billion by FY 2016.

• Key challenges in achieving target revenue of Rs 8.6 billion are additional capital requirement, shortage of qualified personnel, threat from new retail chains, increasing rental rates, and uncertainty in supply.

• New retail chains like Pantaloon, Trend Ltd, Shoppers World, ITC have entered in garments sector posing potential threat to Fabindia. 70% of Fabindia’s revenue are generated from garments.

Sales TargetYear Sales target

2007 100 million

2008 250 million

2009 350 million

2010 450 million

2011 500 million

Revenue TargetYear Addition Revenue

2007 250 million

2008 550 million

2009 953 million

2010 1203 million

2011 1403 million

Franchise and Expected RevenueYear No of new

franchisee Total no of franchisee

revenue per store

Total revenue

2007 50 50 3 million 150 million

2008 50 100 3 million 300 million

2009 51 151 3 million 453 million

Additional Expected RevenueYear revenue

from organics and body care

Revenue from franchisee stores

Revenue from new stores

Total Revenue

2007 100 million 150 million 250 million

2008 250 million 300 million 550 million

2009 350 million 453 million 150 million 953 million

2010 450 million 453 million 300 million 1203 million

2011 500 millions 453 millions 450 million 1403 million

Success Factors▪ Regional business programs-Develop retail store based on region/genre.▪ Rapid expansion to newer cities-plan to open 40-45 new stores every year.▪ Diversification-expanding into new products categories such as furniture and

organic food.▪ Global expansion-adapting to the local culture and expansion into the large

India Diaspora.▪ A supply chain network of more than 40000 handlooms weavers and artist.▪ Training their employees to understand the importance to being friendly.▪ Two level of suppliers national and regional based.▪ Range of garment available and use of natural fabric.▪ Participation in organic /traditional food festivals/rural exhibitions/mela’s.

Challenges Faced▪ Organized sectors▪ Garment based (shoppers,website, reliance e trends)▪ Government handlooms initiatives(khadi, gramodyog,cottage industries

emporiam,)▪ Designer boutiques- ethnic wear retailers like khaddar▪ Unorganized sector▪ Local tailors who provide customized garments to the customers at

reasonable prices.▪ Local NGO selling wares,like dilli haat etc

Title and content layout with chart

Category 1 Category 2 Category 3 Category 40

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Series 1 Series 2 Series 3

Two content layout with table▪ First bullet point here▪ Second bullet point here▪ Third bullet point here

Group 1 Group 2

Class 1 82 95

Class 2 76 88

Class 3 84 90

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Group A

Group B

Group C

Infusion of FundingTo aid the rapid growth, FabIndia will raise equity

either through IPO or Private Placements

Diversification Expanding into

new product categories such Furniture and Organic Food

Fab India’ s Regional Business Programs

Develop retail stores based on region/genre

Rapid Expansoin into newer cities

Plan to open 40-45 micro stores* every year

Global ExpansionAdapting to the local culture & expansion into areas with

large Indian Diaspora such as South Africa, Bahrain etc

BUSINESS STRATEGY: FOCUS 2012-13

4 P's Description

• FabIndia is India's largest private platform for products that are made from traditional techniques, skills and hand-based processes. IT offers has a huge portfolio of products. Its merchandise offers an assortment of grocery products as well as a wide variety of other goods.

• Fabindia's products are natural, craft based, contemporary, and affordable

• Today, Fabindia has 141 retail stores across India and 1 store each in Dubai, Nepal and Italy.

• Fabindia has decided not to expand through the franchisee route in the domestic market as it feels that it will dilute the brand

• FabIndia does not offer discounts or sale on its products• However, after the launch of high ticket items such as furniture, it offers easy EMI options

The company never advertises aggressively but makes people talk about the product and shopping experience

PRODUCT

PLACE

PRICE

PROMOTION

Exis

ting

M

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ew

Mar

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BRAND STRATEGY

A delighted Customer is our Best Brand Ambassador”

USP : quality of the fabric and the cultivated image of ‘Indianness’

Does not follow any customer acquisition strategy: focuses on customer retention

Key element: word of mouth publicity ( Zero advertising except print ads during promotions ), advertorials, mobile marketing, in-store posters

Mystery Shopper Program: to check the customer satisfaction level

•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 offeringsSOURCE: Interview of Mr. William Bissel, MD, Fabindia published in The Economic Times, Jun 2011

Objective▪ Help FabIndia in retaining customers by building lasting relationships and

improving loyalty, and acquiring new customersRationale

•Capitalize the potential to expand the TG from 25 + to 18+•FabIndia does not advertise, depends on word of mouth. This essence will be

continued with the social media campaign as well•Take advantage of the perfect overlap of FabIndia TG and the internet user profile,

18-35 years•Created fully fledged retail market online•First mover advantage in their segment •Connect with the customer to customize•Brand managers at Fabindia use a concept of intuition: creating a complete look

based on a single design -> this to form the ethos of the 3D online trial room

Big Idea

Strategy

•Expand average basket size of TG which coincides with internet TG- 18-35•Promotion optimization •Convenient country specific format •Online space- for more visible •Online marketplace – integrated into operations•Aspiration value- though long term membership benefits•Increase preference n brand recall in foreign countries n NRIs•Lock in % of wallet as Indians increasingly shop online

Tactics

•Launch online activities with the Summer collection•Online Trial Room: mix n match clothes and design a new look on a 3D simulated trialroom w/ a model as

per physical specification•Micro site •Social sites•High search ranking: Google Adwords•SEO n SEM•Exhibition + workshops on ground•Diwali – make ur own gift bag for your family/friend – buy them a new look and get it home delivered !•CSR weekend promotion: showcase craftsmen and tie up with Breakthrough

COMPETITORSCompetition faced by fabindia is from both the organised and the unorganised retail

sector.

UNORGANISED SECTORS-1.LOCAL NGO'S2.DELHI HAAT3.LAW GARDEN

ORGANISED SECTORS-1.GARMENT BASED -A. SHOPPERS STOP B.WESTSIDE C.RELIANCE TRENDS D.GLOBUS

2.DESGNER BOUTIQUE

Fab India: 2010

Revamping website

Launch summer collection

Create an e-market place

Link online sales to supply

chain

Build social media presence

On ground promotions to complement e-

campaign

60th year anniversary

Early 80’s

Revamp WebsiteObservation

>Clean web 2.0 site>Allows for basic online sales>Poor search engine ranking to keywords such as “Indian” and “ethnic”>@fabindianews twitter handle for promotional offers

Action

>>Redesign website for Web 3.0>>Navigation on the site to be interactive>>Website to also act as knowledge director to reputed resources on Indian culture, fabrics etc.>> Linked to the operations database and supply/delivery chain>>Create WAP site for mobile browsers>>Integrate Woopra for site analytics and connecting with website visitor real time>>Create activity on other social media platforms to drive traffic to website

ONLINE CAMPAIGN

1) Revamping the Website :• A micro site with the new biometrics application will be added to the website. The micro site will have the biometrics

feature which allows users to customize their own designs as well as selecting fabric and colours. It would also allow the user to have customizing fits. Users can then do an online payment and their apparel would be shipped to their mailing address.

• The micro site would be linked to the national supply chain data and regularly updated. This will make the online process centralized and will enable FabIndia meet the demands of the consumer irrespective of the location.

• Website will serve as the landing page for all online marketing initiatives. • Website would also carry links to pages on various social networking sites.

2) Social Media Initiatives:The main aim of the social media initiatives would be:• Increase traffic to the revamped website of FabIndia • Informing and familiarizing the users with the biometrics application feature on the microsite of FabIndia• Network with users to reach out to more and more consumers• Inform the users about the Culture & Crafts’ Fest • Inform and educate the consumers about the 50th Year CSR initiative of FabIndia and engage them to be contribute towards the cause

ONLINE CAMPAIGN CONT…Facebook: • Start a fan page and provide regular updates on changes happening in FabIndia • Develop a gaming application similar to the biometrics application on FabIndia website and share it with fans. This would generate a word of mouth publicity for the application as well as familiarize the users with the application. • Upload photos of new stores, new fabrics, new designs etc. and events organized by FabIndia• Upload videos of cultural events etc.

Twitter:• Microblog about new changes in the brand FabIndia and its online initiatives • Regular tweets about the new biometrics application • Engage into conversations with consumers (provide solutions to issues they face etc.) • Tweets about upcoming ground activities• Tweets about the 50th year CSR initiative

Youtube: • Upload viral video for the CSR initiative to involve more and more users to support the cause

Online Events websites (Buzz in town etc.)• The onground activities in the metros would be mentioned on online events sites etc.

ONLINE CAMPAIGN CONT…

3) E-mailer:• An e-mailer would be designed to be sent out to the database of customers about the new online biometrics application which they can use for online purchase • The e-mailer will also be used for informing customers about upcoming summer collection, events etc. • Customers will also be encouraged to support FabIndia’s 50th Year CSR initiative

4) Adwords:• The focus will be on SEO to increase search engine rankings for the FabIndia website • Purchase keywords: ethnic indian wear, retail, cultural, indian wear, kurtas, customized design etc.