FABINDIA OVERSEAS PVT. LTD.

Presented by:Jay KamdarAkshay SuranaSaurav BasakPayal PattnaikAbhijeet KararPranay Kumar

COMPANY HISTORY Fabindia was founded by John Bissell, a Connecticut

native who went to India in 1958 Fabindia Inc. was incorporated in 1960 as an export

house in Delhi, and its office was located in John Bissell’s home in Delhi.

The company dealt exclusively with upholstery fabric In 1976, Fabindia opened its first retail store in

Greater Kailash, an upscale neighbourhood in Delhi, and Fabindia Overseas Pvt. Ltd. came into being.

In 1977, the company made its first move to incorporate contemporary design in its products.

Vision At Fabindia we celebrate India, and endeavour to bring all that we love about India to customers around the world.

Mission

To strengthen and support our community of customers, designers, artisans, farmers, makers and entrepreneurs inspired by India and to give customers products that delight them by interpreting rich heritage and traditional knowledge, while protecting the natural environment.

STORE AMBIENCE Exterior Interior

PRODUCT MIX

PRODUCTS OF FABINDIA1.ETHNIC WEAVES2.GARMENTS3.FURNISHINGS 4.FURNITURE5.ORGANICS

SUPPLY CHAIN Fabindia’s suppliers were predominantly from rural India. There were two levels of suppliers: artisans comprising,

among others, weavers or printers, and fabricators. Weavers send their fabric in rolls known as thaans. The fabric was then sorted and stored Tailors were issued fabric depending on the design and

the quantity of garments ordered by the warehouse person in charge.

Fabindia had two kinds of organic products suppliers—small-scale corporations and individual farmers, or not-for-profit organizations.

PROCESS FLOW AT FABINDIA

SWOT ANALYSISSTRENGTHS

1. The brand has maintained its Indianness with the authenticity of hand-woven fabric for over years.

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

3. The autonomy given to employees has helped induce accountability among them

4. The fact that the brand strongly believes in word of mouth marketing which has proved very effective as the brand does not advertise

WEAKNESS

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

2. Not enough experienced personnel to push FABINDIA towards growth in the retail sector

3. Limited global penetration despite huge potential in NRI market

OPPORTUNITIES

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

2. Display of FABINDIA products in MBO’s and collaborating with various construction groups would give greater visibility to the brand.

3. Geographic expansion in US and UK with huge Indian population.

THREATS

1.Unorganized local players can be a serious threat to the brand.

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

3.Consumers tilt towards foreign brands in the lifestyle segment

STP OF FABINDIA SegmentationMen, women who want to buy complete Indian products. Target GroupUrban upper and middle class families. PositioningLifestyle brand which is Indian at heart.

RETAIL STRATEGY• Premium• Regular• Concept• Online

Type of Stores

• Self owned & leased Stores• Joint Venture in Italy• Franchisee in other Foreign Countries

Ownership

• Heritage Landmarks, Destination Stores• Aesthetics connection to all things naturalLocation & Ambience

• Uniforms conveying their ideology• Routine Visits to supplying weavers and training programsStaff

MARKETING MIX

COMPETITION

FUTURE PLAN OF FABINDIA The plan is to grow revenues to Rs. 8.6 billion

($191 million) from 200 stores by FY 2011. The management team anticipated growth to

come not only from the opening of new stores but also from increased same-store sales.

They also wished to expand their offering of organic products to fresh produce and dairy, as well as baked goods, and to open separate organic-products stores.

CHALLENGES The internal issue facing Fabindia was a potential

shortage of personnel qualified to power the growth. External pressures were building up too. The

competitive landscape was rapidly changing. According to retailers the home linens market was

moving towards branding and “the entry of international brands was imminent.”

large corporations such as Godrej as well as other big retailers like Pantaloons were expected to aggressively enter the market over the next few years.

RECOMMENDATIONS Needs to invite outside investors for

speedy growth and beat the competition Needs to enlarge its customer base by

focusing on new customers rather than only on existing one’s.

Needs to remind the new generation employees about the ideology of John Bissell’s so that the mission and vision of the company can be fulfilled.

THANK YOU