Innovation in Emerging Economies The Case of fabindiagoutam Singh (MBA)
“The challenge for Fabindia is to produce world-class textile products without resorting to capital-intensive methods of production as that will leave out the artisans. Fabindia’s 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 William Bissell CEO Fabindia
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.
History of Fab India Fab India was initially commenced as a village based industry in 1960 by John Bissell, who was previously working for the New York Macy as a consumer left his job position and started to work for Ford Foundation as a counselor where he had given 2 years to instruct the Indian villagers to make textile possessions for export. His firm belief was to enhance the growth of textile industry and was very determined to provide a platform for the Indian handloom textile industries. He provided equitable job opportunities to the traditional artisans and established Fab India in 1960, to amalgamate the best approaches of West & East Collaboration.
Awards for Fab India • Fab India was awarded “Best Retail Brand, 2004” by The Economic Times of India. • Fab India also got “Designer Promoting Indian Craft or Technique award” as Hall of Fame reward.
The material & machines used by Fab India • Hydro Extractors: Direct drive, self balancing and high speed DC injected broke are suitable for the merchandise centrifuge after dying or washing. High speed, mainly ensures undersized extraction and consumes less energy. • Dry-Cleaning Machines: The machines Fab India uses comprise powerful filter, with low spin extract. The machine at Fab India for dry cleaning is specifically designed in order to remove greasy and oily trace marks from woolen or quality garments.
Fab India Store locations The stores of Fab India are located all over the world with 99 stores in all the major cities and states of India. Moreover, Fab India offers its stores in various International places including UAE, Dubai, Bahrain, Italy and Rome.
Growth of Fab India The first Fab India store of retail was built in New Delhi, Greater Kailash with an assortment of home lines, durries and upholstery fabrics. By eighties Fab India started to produce garments prepared from hand block and hand woven printed fabrics. As years passed by, the marketing focus of Fab India shifted to the India’s local retail market from exports. At present, Fab India enjoys a successful business of retail presenting textile industry of India an assortment of home products and natural fabrics including cutlery, pottery, home accessories, lamps, furniture etc. In 2004, Fab India launched a product line of organic foods, by extending the partnership to rural area farmers.
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
Fabindiastrategies Home deliveryDeepavali gift packsFree samplesPromotional literature (brochures, pamphlets) focus on generic promotion oforganic Participation in organic/traditional foodfestivals/rural exhibitions/melas
India’s 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 countries…” James Wolfensohn Former World Bank Director and Promoter of Wolfensohn & Company LLC which has recently invested $11 million in Fabindia
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
The Fabindia School Bali, Rajasthan *The Fabindia School is managed by a non-profit organization Bhadrajun Artisans Trust (BAT). *BAT was established by William and John Bissell to build social development programs with a focus on education and crafts. *BAT is run by a Board of Directors and The Fabindia School is the sole project of BAT. *In addition to the BAT Board, The Fabindia School also has a local Board of Directors from the Bali area which is comprised of local parents and community members.