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ARUP
The Case of
fabindia
The challenge for Fabindia is to produce worldclass textile products without resorting to capitalintensive methods of production as that will leave out the artisans. Fabindias success to the exclusion of its weavers would be meaningless and defeat the very purpose of its existence
Our challenge is to co-opt the artisans, help them gain confidence to become independent and complete in the market
FAB INDIA
FABINDIA IS AN INDIAN CHAIN OF STORES RETAILING ETHNIC PRODUCTS MADE BY CRAFTSMEN FROM RURAL INDIA.
Fab India is a chain of retail stores in India producing ethnic products carried out by the craftsmen of rural India. The Fab India products are mainly source to sustain and provide employment opportunities to the rural people in India. The company employs more than 15000 craftsmen and artisans all over India.
FABINDIA STRATEGIES
1.Multiple procurement sources (private, NGOs, farmers groups and individual farmers) (Networking):It has 122 products from 16 suppliers with 220 product packs 2. Training and financial support to suppliers 3. Partnership with small producers 4. No direct working with producers 5. Partnership in Community owned companies of producers
FABINDIA STRATEGIES
Home delivery Deepavali gift packs Free samples Promotional literature (brochures, pamphlets) focus on generic promotion oforganic Participation in organic/traditional food festivals/rural exhibitions/melas
FABINDIAu
INDIAS LARGEST RETAIL BRAND FOR CRAFT BASED, HAND MADE, NATURAL PRODUCTS GARMENTS, FURNISHINGS, FURNITURE, ORGANIC FOOD AND BODY CARE PRODUCTS . TRANSFORMED THE DRESSING SENSIBILITIES OF URBAN INDIAN WOMEN. ETHNIC WEAR IS NOW |IN} . |FABINDIA LOOK} IS A HOUSEHOLD TERM IN URBAN INDIA SYMBOLIZING A STYLE THAT IS CONSIDERED INDIVIDUAL, CONTEMPORARY AND CLASSIC. ANNUAL REVENUES OF 4.17BN; 97 EXCLUSIVE STORES 90 SPREAD ACROSS 50 CITIES IN INDIA ; REST ABROAD (ROME, DUBAI AND GUANGZHOU) ; EXPORTS TO 33 COUNTRIES ACROSS THE WORLD. |IT SEEMS TO ME THAT THIS (FABINDIA) IS THE PROTOTYPE THAT YOU NEED TO INVEST IN DEVELOPING COUNTRIESu}
James Former World Bank Director and Wolfensohn & Company LLC
Wolfensohn Promoter of
STRENGTHS
1.Differentiable product 2.Customer loyalty 3.Different catogories of stores 4.Price trend setter 5.in-house manufacturing 6.Partnering with suppliers.
WEAKNESSES
1.No specific promotion strategy 2.Limited channel of business 3.Inconsistent quality of products 4.Inconsistent service in stores
OPPORTUNITIES
1.Promoting e-business channel 2.Organic food market 3.In store merchandising and navigation
THREATS
1.Substitue producing competitors 2.Not in touch with fashion trends.
CONCLUSION
1.Value chain analysis 2.Invest in marketing 3.Stay put 4.Offer complete range (try product exchange) 5.Networking for procurement and marketing 6. Make use of Producer Company clause in the Companies Act to organise/encourage market oriented and business like co-operatives (New Generation Co-operatives) and convert existing coops into NGCs
QUESTIONS ?