FabIndia..a way to lead a firm!!!

FabIndia, the export house, was established in 1960 to export and sell soft home furnishings by John Bissell, a high-quality cotton buyer for a US firm. He found out potential in Indian market where there were people who had shown interest in producing cotton but economic barriers being the constraint. He wanted to establish a firm to bridge this gap and help weavers find market.

Business Model: The Company started off as an export house of upholstery fabric. Later, it was segmented to target different customers according to their need and achieved customer’s perceived value in terms of quality.

Value Proposition: To the customers: The Company had 3 kinds of stores (premium, regular, and concept) of exclusive handlooms, thus providing comfortable prices to different segments of the society. Organics developed the rural areas where green revolution had not reached.

 To the employees:  Nurturing rural artisans who are dependable on the company for their livelihood. Providing platform for Suppliers, helping them grow with the firm (as shareholders, business partners etc)

Mission:  To provide work and employment to India’s skilled rural artisans and protect traditional weaving and printing skills.

Vision: Continuous growth and expansion while still following the mission

Strategy: FabIndia aimed at short term goals. Target revenues are fixed and achieved by keeping in mind the mission, improving the product mix and expanding business.

Brand creation: “FabIndia Look”, a brand created by hand-woven fabrics in bright colors with traditional prints and patterns became famous.

Solution: Since the brand has already been established, the company must offer “Made on Order” clothing and furnishings to attract customers who look for personalization. To be a step ahead of competition, it should start mobile sales, thus enhancing its visibility to the common public who are unable to visit the store. Summer discounts should be provided. Personnel to overlook their activities can be chosen from among the workers as they already understand the company’s mission and then trained. The company should concentrate on its organic business. Instead of waiting for the demand of Organics to rise, they should promote its benefits in cities like Delhi and Mumbai which are open to such changes. And then analysis of market research results has to be done and thus depending on that they can be ready with adequate supply of the product.