2. Introduction
Fabindia was founded with the strong belief that there was need for a vehicle to
market the vast and diverse craft traditions of India and thereby help fulfill the
need to provide and sustain rural employment.
Brief History
Founded by John bissell to develop market for hand-woven product and provide
rural employment.
Incorporated in 1960 in Delhi to export upholstery fabric.
1974 saw Fabindia’s first retail store in Greater Kailash with ad-hoc
merchandising.
1977- Featured contemporary designs to attract consumers and designers.
3. Garments were introduced in 1980s after John Bissell got Khadi shirt made for
himself.
John Bissell died in 1998,passing the baton to son William Bissell who became
MD in 1999.
William’s vision included expansion, depending less on exports and setting up
retail operations .
From 1990 onwards Fabindia emerged as successful retailer in India, with 170
retail outlets within the country and abroad.
Fabindia added its non-textile range in 2000, organic food in 2004, followed by
personal care products in 2006 and hand crafted jewellery in 2008.
Fabindia sells a variety of products ranging from textile, garments, stationery,
furniture, home accessories, ceramics, organic food, and body care products.
4.
5. Today Fabindia is considered as one of the most profitable retailers in the
country. It earns a net margin of 8%,nearly three times more than the industry
average.
It’s supply chain is based on inclusive capitalism co-option of 22,000 artisans and
making them into share holders through an elaborate community owned model.
Designers and business experts are directly employed by Fabindia. Few of the
designers work with the artisans while others from the product selection
committee is to select new artisans and weavers and ensure that the quality
standards are met before ordering the products.
8. Use of Technology in FabIndia’s Supply Chain
In 2005, Fabindia decided to transform and strengthen its Supply Chain
with the goal to increase monthly revenues from 8 crore per month to
20 crore per month. A major step in this effort was to automate a major
portion of the ordering process. As a result two distinct modules were
created
B2C Module
This was nothing but the website www.fabindia.comwhich was transformed
to an online shopping website where the entire range of products in
Fabindia was contained. This website was linked with domestic and
international courier companies who would pick up the ordered item from
the warehouse in Delhi and deliver it to the e-
customer. The B2C module served domestic ‘click’
customers and international customers, who wanted Fabindia products but
did not have access to a store.
B2B Module
This was the software developed to connect Fabindia stores to the SRC
warehouse. This allowed store managers to independently order from each
of the SRCs. This would allow for streamlining of order and delivery. The
B2B module would also help to project future growth by also acting as a
forecasting tool
9. Key challenges in current supply chain
The main problem for Fabindia is to maintain consistency of products since the
suppliers and manufacturing locations are scattered over a large geographical
area on a small scale.
As these products are made in rural locations in various locations, it has been
difficult to maintain same level of quality due to lack of knowledge on urban
customers and also cultural, behavioral differences in suppliers across different
locations.
In case of organic products, Market in not matured.
The major problem there is fickle delivery and product availability, which does
lead to customer dissatisfaction.
.
10. Solutions to the challenges:
Ease of expansion:
Bringing the SRCs under its gamut brings with it the advantage of ease
of access to company capital and also helps artisans raise money much
more easily.
This leads to an easier expansion of capacity.
Quality Control:
controlling delivery times more easily through centralized processes using
technology
standardization and checking defects in the raw material procured and
used.
It also helps ensure a benchmark quality which ensures that a problem of
non-repeat of purchases does not occur.
11. channels to International markets
Fabindia has already created its presence in international markets via own retail
stores, other retailers and institutional sales.
The complete product range is exported from India. Fabindia does a special
collection twice every year to include in exports.
To lure potential international customers, they show case these special collection
in Indian handicraft and gift collection fair in New Delhi in spring and autumn.
As per the industry reports, biggest overseas market for Fabindia were Canada,
Australia, UK, Qatar, and Oman.
Fabindia does not opens its manufacturing unit in overseas due to high cost and
uncertainty of demand.
12. Retail:
Internationally Fabindia owns stores in Rome (Italy), Guangzhou (China),
Dubai(UAE), Manama (Bahrain) and Doha (Qatar).
•The product range consists of garments for men, women, children and infants;
garment accessories; home furnishings
• Bed, bath, table and kitchen linen, upholstery fabric, curtains, floor coverings;
•Furniture, lights, lamps and stationery;
•organic foods and body care products.
Wholesale exports:
Currently, Fabindia exports products to more than 30 countries, sells to wholesalers
and secondary retailers .
Primarily, exports include garments and home linens.
An office in US wholesales home furnishing collections all across the continent.
Institutional sales:
The potential customers are heritage hotels and multinational corporate houses.
Fabindia also provides consulting services in customization and interior designing.
13. TRIVIA
•Which international company has 8% share in Fabindia?
•Louis Vuitton Moet Hennessy (LVMH) acquired an 8% stake in
Fabindia.
Fabindia also acquired a 25% stake in UK's women’s wear retailer,
which one it is?
EAST .
