Fabindia is an Indian retail chain known for selling garments, home furnishings, and other handcrafted products made by artisans across rural India. Founded in 1960 by John Bissell, it has grown to over 141 retail stores across India and a few other countries. To further its rapid expansion goals, Fabindia is considering raising equity through an IPO or private placements. It also plans to diversify its product categories and expand globally while continuing its focus on regional business programs and opening new stores in emerging cities annually.

1. Presented by:
Ashish - 114030
Alan -114014
Archit
Deepanshu
Divyanshu
Dhruv

2. 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

3. 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.

4. 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.

5. 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

6. 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.

7. ▪ 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.

8. 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.

9. 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.

10. Products and Services
Garments Home furnishings Home linen
AccessoriesPersonal products Organic products

11. 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.

12. 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 .

13. 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

14. 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.

15. 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.

16. Sales Target
Year Sales target
2007 100 million
2008 250 million
2009 350 million
2010 450 million
2011 500 million

17. Revenue Target
Year Addition Revenue
2007 250 million
2008 550 million
2009 953 million
2010 1203 million
2011 1403 million

18. Franchise and Expected Revenue
Year 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

19. Additional Expected Revenue
Year 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

20. 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.

21. 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

22. Title and content layout with chart
0
1
2
3
4
5
6
Category 1 Category 2 Category 3 Category 4
Series 1 Series 2 Series 3

23. 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

24. Two content layout with SmartArt
▪ First bullet point here
▪ Second bullet point here
▪ Third bullet point here
Group
A
Group
B
Group
C

25. Infusion of Funding
To 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 Expansion
Adapting to the local culture &
expansion into areas with large
Indian Diaspora such as South
Africa, Bahrain etc
BUSINESS STRATEGY: FOCUS 2012-13

26. 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

27. ExistingMarketsNewMarkets
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 offerings
SOURCE: Interview of Mr. William Bissel, MD, Fabindia published in The Economic Times, Jun 2011

28. Objective
▪ Help FabIndia in retaining customers by building lasting relationships and improving loyalty, and
acquiring new customers
Rationale
• 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

29. 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

30. COMPETITORS
Competition faced by fabindia is from both the organised and the unorganised retail sector.
UNORGANISED SECTORS-
1.LOCAL NGO'S
2.DELHI HAAT
3.LAW GARDEN
ORGANISED SECTORS-
1.GARMENT BASED -
A. SHOPPERS STOP B.WESTSIDE C.RELIANCE TRENDS
D.GLOBUS
2.DESGNER BOUTIQUE

31. 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

32. Revamp Website
Ob
ser
vati
on
>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
Actio
n
>>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

33. 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

34. 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.

35. 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.