By –

GROUP
5
 Home
Garments Organic Products
Décor

PRODUCT Furniture Kids Wear Foods

MIX Upholstery Teen’s Wear Cosmetics

Curtains Women’s Wear

Linens Men’s Wear

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 Current Scenario
• No. of stores- 78 (2007)
• Annual sales- 130 Cr (2006)

KEY
OBJECTIVES Target by 2011
• No. of stores - 250
• Annual Sales – 1000 Cr

What should be the expansion strategy to

meet the target ??
3
 Expected Growth Rate
CAGR Rate
Current growth 1200 Expected growth
rate – 38% 1000
rate -50.39%
1000

800
664.95

600
442.16
400
294.01
195.5
200 130

0
1 2 3 4 5 6

Value Linear (Value)

Note: The sales figures are in Cr and year 1 represents 2006 , year 2 represents 2007 and so on.
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Ethnic wear –
9000 Cr
Purchasing
power of middle
Is there any
class –
10 L Cr opportunity ??
Organized The target is tap this 9000 Cr
retail- 3%
Growth rate- market aided by growing
Global organic
18% market- $31 purchasing power of middle class
India’s Share-
0.001% as well growing organic market.

5
 Expansion Strategy

Most of the ecommerce started after

2008 and until 2011 didn’t include
garments in their portfolio.

Target
Sales Sales
Increase in through
sales of
existing
brick and Owned/
motor
stores stores Leased

Increas Premium/
e in no. Regular/
of Online Conceptu
stores Sales al
 CATEGORY DESCRIPTION

Direct Competition
• Ethnic Wear Retailers • Khadder, W & GoodThings
• Ethnic Wear from Modern • Shopper’s Stop, Big Bazar
Stores • Prapti - Kolkata, Biba -
• Standalone Stores Bangalore
In Direct Competition
• Global Players with Western • Walmart
Competitor Clothing • Carrefour
Analysis • Unorganized Sector • Metro

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 Maintaining a robust supply chain especially retention of the
artisans and preventing their shifting to future competitors.

KEY Maintaining or launching new designs for garments sections

CHALLENGE which are blend of traditional aesthetic and modern outfit aligned

S with the philosophy of Fab India.

Promote the organic segment to tap the rising organic products

consuming consumers.

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 Expansion Strategy
Criteria for cities
• Population: High Population Density

• Literacy Rate: High Literacy Rate

• Customers: High Per Capita Income

• Cities: Tier -2 & Tier 3

• Stores Types- Premium, regular and concept.

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 SELECTION OF
STATES
State/ Union Territories Per Capita Total Expenditure (In Rupees)
-2008-09 – Actual
Goa 22393.41

Uttarakhand 12050.25

Haryana 10386.51 Phase -1

Tamil Nadu 9870.23

Punjab 9818.48

Andhra Pradesh 9128.15

Kerala 9100.38

Karnataka 9021.88 Phase -2

Maharashtra 8800.79

Gujarat 8410.47

West Bengal 6408.56

Rajasthan 6217.11 Phase -3

Odisha
SOURCE: data.gov.in
6119.35
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 Cities selected among the shortlisted states
• Vizag
• Vellore
• Vadodara
• Pune
• Nashik
Phase – 1 • Nagpur Phase – 3
• Kochi

• Goa • Siliguri
• Karnal Phase – 2 • Durgapur
• Chennai
• Rourkela
• Coimbatore
• Cuttack
• Mohali
• Kota
• Chandigarh
• Haridwar • Jodhpur

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 Tackling challenges

• Flexibility
Organic Community
products
in quality
Collaboration ownedfrom
withprocured
parameters
designers model
likeespecially
small
Riten
 Retention of artisans for Mazumdar.
robust supply chain. designs. NGO & small scale
farmers,
AMPL
• manufactures.
Collaboration with institutes49%
like National
Institute of design.
• Flexibility in delivery delays.
 Launching trending
designs • The business model is based on trust and
Local
• Encouraging
verbal commitment.
trust among it’scraftsmen-
Enterprise weavers.
36%

 Procurement of organic
produce
Investors-
15%
 Segmentation, Targeting & Positioning
Segmentation Targeting Positioning

• Demographic • Age- 18-35 • Ethnic wear with

• Psychographic • Preferring ethnic combination of

• Geographical wear& inclined traditional and

towards organic modern design

products. • Trusted Organic

• Tier 2 & tier 3 Products

 Promotion Strategy

Reliance on
Word to Promotional
Posters youth
word events
leaders
 Current Scenario

Source: Forbes March-2017 Source: INSEAD case study, 2015

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Present Garments Landscape in India

16
Stores layout at
Aundh

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