SUBMITTED BY : VINAYAK SHUKLA AD IV

FABINDIA

CONTENTS
INTRODUCTION INDUSTRY OVERVIEW SWOT ANALYSIS COMPETITION CUSTOMERS

FABINDIA

Fabindia was founded with the strong belief that there was a need to vehicle to market the vast and diverse craft traditions of India. Thereby fulfill the need to provide and sustain the rural employment. In 1958 John Bissell left New York to work as a consultant for the Ford foundation. Highly impressed with the Indian handloom textile he decided to exhibit this craft to the outside world. This led to genesis of FABINDIA in 1960,primarily as an export house in order to provide equitable employment and to fuse the best aspect of East-West culture.

FABINDIA

In 1975 the first FABINDIA retail outlet was opened in Greater Kailash, New Delhi. By the early eighties ,FABINDIA has forayed into the production of garment made from hand woven and hand block printed fabrics. The stores of FABINDIA are located all over the world with 99 stores in all the major cities and states of India. Moreover FABINDIA offers its stores in various international places including UAE, Dubai, Bahrain, Italy and Rome .

INDUSTRY OVERVIEW

The apparel industry is one of the Indias largest foreign exchange earners, accounting For nearly 16% of the countrys total export . The 1996 Indian textile exports approximately amounted to Rs 35,000 crores of which apparel occupied over Rs 14,000Crores . The traditional cloth market is growing at 11% a year. An estimated 30,000 readymade garments manufacturing units and around three million People are working in the Indian textile industry.

FABINDIA

SWOT ANALYSIS

STRENGTH
Customer loyalty Price trendsetters Brand recognition and loyalty Suppliers as key stakeholders. Involvement of store managers and staff. Trust and bond among all supply chain members. Quality control Wide product range

WEAKNESS
No specific promotion strategy. inconsistent services in stores. limited channels of business. Inconsistent quality of products in the company.

FABINDIA

COMPETITION

Competition faced by fabindia is both by organized and unorganized retail sector. The unorganized sector has local tailors who provide customized outfits to customers at reasonable prices and the local NGOs selling wares. A far greater threat is posed by organized sector specially government owned Khadi gram udhyog outlets and cottage industries across the country. However the quality of fabindia is considered to be higher. The organized sector also includes outlets by corporate houses such as Lifestyle and Westside which cater to the same demographic profile. However the products do not aim at the same targeted market.

CUSTOMERS

Fabindia does not follow any customer acquisition strategy . It creates its market through existing customers . 85% customers are their repeat customers. They constantly try to improve their quality of the product in order to retain their customers. The company also has the mystery shopper program in order gauge the customers satisfaction level. Mystery shoppers act as normal customers perform specific tasks such as purchasing of product , asking questions , registering complaints or behaving in a certain way and then giving feedbacks to the company.

FABINDIA