Professional Documents
Culture Documents
The objective of this research is to identify a need gap in the market and launch a brand,
keeping in mind all the management and marketing aspects along with studying its supply chain and
fashion value chain.
Indian threads is an indo-western brand that has been initiated with the concept of blending
Indian and western cultures together and provide that unique mix to the customers. This report will
give detailed information about how the brand will be conceptualized.
An intensive research has been done on Fab India to identify the points of parity and points
of difference with respect to Indian threads. The target customer has been identified through
questionnaires, DILOs and customer insights. Project management skills and other managerial tools
have been effectively used to launch the brand Indian threads- weaving the tradition successfully.
INDIAN THREADS
Fab India is India's largest private platform for products that are made from traditional
techniques, skills and hand-based processes. Fab India links over 40,000 craft based rural producers
to modern urban markets, thereby creating a base for skilled, sustainable rural employment, and
preserving India's traditional handicrafts in the process.
Fab India promotes inclusive capitalism, through its unique COC (community owned
companies) model. The COC model consists of companies, which act as value adding
intermediaries, between rural producers and Fabindia. These are owned, as the name suggests, by
the communities they operate from; a minimum 26% shareholding of these companies is that of craft
persons.Fabindia's products are natural, craft based, contemporary, and affordable.
They continued to focus their primary efforts on their export business. The products of
Fabindia in the initial years consisted of only upholstery fabrics for export to overseas markets. Then
in the early part of 1980s readymade garments were added to its product line and in 2004 organic
products were added. In 2006 body care products were introduced. Thus, the product mix of
Fabindia could be divided into three broad groups, namely Garments, Home Products and Organics.
Most Fabindia stores are owned or leased by Fabindia. There are a few exceptions like the
joint venture in Rome and the franchise outlet in China. The number of Fabindia stores has increased
over the years, particularly under William Bissell. From three stores in 1996 it has gone up to 75
stores in 2007.
INDIAN THREADS
Founded in 1960 by John Bissell to market the diverse craft traditions of India, Fabindia
started out as a company exporting home furnishings. The first Fabindia retail store was opened in
1975 in Greater Kailash, New Delhi.Fabindia was first started as a one-man export company of
home furnishings, by John Bissell in 1960, in the two small rooms adjoining his bedroom in his flat,
as "Fabindia Inc.", as it was incorporated in Canton, Connecticut. He used his recently deceased
grandmother's $20,000 legacy as start-up capital.He firmly believed in the emerging Indian textile
industry and was determined to showcase Indian handloom textiles with a way to provide to
traditional artisans.. Through early years Bissell travelled across craft-based villages and town
meeting weavers and entrepreneurs, swatches who would produce flat weaves, pale colors and
precise weights in handloom yardage, in the end he homed in on one supplier, A. S. Khera, a home
furnishing manufacturer in Panipat thus by 1965 it had a turnover of Rs. 20 lakhs though for the first
time it moved into a proper office.
The year 1976, saw major equity restructuring within the company, as adhering to Reserve
Bank of Indias rules instructing foreign companies to limit their foreign equity to 40 percent,
Fabindia offered its shares to close family members, associates, and suppliers like Madhukar Khera,
an early supplier to the company. This was also the height of the Indian Emergency period (19751976), and the rule, which barred commercial establishments to run from residential properties, was
implemented, the company was forced out of its second premises, a house on the Mathura Road.
This prompted it to open the first Fabindia retail store in Greater Kailash, N-Block market in New
Delhi, in 1976, which remains its register office.
Now catering to the urban India as well, in the coming decade Fabindia differentiated itself
from other government-owned and often-subsidized players, in handloom fabrics and apparel sector,
like KVIC and various state emporiums by adapting its fabrics and designs to urban taste. For this
designers were accessed to modernize its line of home linens and most importantly introduced a
range of ready-to-wear garments, including churidar-kurta suits for women, men's shirts etc.
William, working with rural artisans and crafts co-operatives across Rajasthan, was
instrumental in the setting up of various weavers' cooperatives. One of first tasks taken up by
William was shifting Fabindia's focus to the domestic market, en route to becoming a retail chain,
for till then it only had two stores in Delhi. In time Fabindias retail business overtook its exports
1.3.Evolution
INDIAN THREADS
Fabindia, emerged as a successful retail business in India, with 111 retail outlets within the
country and 6 abroad. Fabindia added its non-textile range in 2000, organic foods in 2004, followed
by personal care products in 2006, finally it launched its range of Handcrafted jewelry in
2008Fabindia sells a variety of products ranging from textiles, garments, stationery, furniture, home
accessories, ceramics, organic foods, and body care products, besides exporting home furnishings.
Fabindia's retail expansion plans started taking shape 2004 onwards, it opened multiple and larger
stores in metros like Mumbai, Chennai and Delhi, while at the same time spreading out beyond
metros. It opened stores in Vadodara, Dehradun, Coimbatore and Bhubaneswar, Durgapur soon as
revenues also grew from Rs 89 crore in 2004-05 to Rs 129 crore in 2005-06, reaching Rs 200 crore
in 2007, in the year when it sourced its products from 22,000 artisans in 21 states. Today, with a panIndia presence, Fabindia is the largest private platform for products that derive from traditional
crafts and knowledge. A large proportion of these are sourced from villages across India where the
company works closely with the artisans, providing various inputs including design, quality control,
access to finance and raw materials. Fabindias endeavor is to bring customers a choice of products
and lifestyle that offers an alternative to the mass-produced, while creating sustainable
livelihoods in the rural sector.
INDIAN THREADS
The weavers statement regarding the length was generally accepted and only random checks
were occasionally carried out to cross check the statements. The supply region channel gives orders
to the weaver. Weaver and the vendor is the same person at times. The SRC has a distribution list,
which has the details of the region to which the consignment has to be sent. This distribution list is
given to the SRC by the head office of fabindia.
SRC then according to the distribution list dispatches the products to MRW (MARKET
REGION WAREHOUSE). Every market region has different warehouse. There are a total of 9
MRWs. The products from SRC first reach the MRW according to the distribution list, from here
these are dispatched to the stores for the consumers to buy. Every market region has a different
market region warehouse to which the products are dispatched by all the 17SRC according to the
specifications and requirements of the region. Following is the detailed list of the region wise
allocation of MRWs.
INDIAN THREADS
INDIAN THREADS
INDIAN THREADS
INDIAN THREADS
Fabindias products are its differentiating factor and it has made sure over the years that the quality
and the style of the products is maintained. It has a large product range which includes -Garments
for men and women; accessories; home linen and furnishings; home products like cane baskets,
lightings etc; floor coverings; body care products like soaps, shampoo, body scrub etc, and organic
food products like cereals, tea, fruit preserves etc, and ethnic jewellery. All the products have at least
one factor which is handmade and thus, supports artisans. This is a very strong customer value
leveraged by Fabindia, which is that of traditional, ethnic products which support poor artisans and
provide livelihood to a large number of people.
INDIAN THREADS
2.2.Price
Fabindia provide a wide range of products in a wide price range. The products range from
garments for men and women to upholstery, furniture etc. Obviously these products have different
price ranges. But Fabindia has tried to make sure that the customer cost remains affordable and gives
value for money. To this end, it has expanded its range of garments starting from Rs. 200 to more
Rs.2000 in order to provide something for all its customers
2.3.Place
Fabindia has stores in more than 95 locations across India. In delhi it has store at
Greater
Kailash, DLF Promenade, Rajori Garden, and many more places. The stores include the premium,
regular and concept stores. It also differentiates its stores according to the products stored. For eg. In
Mumbai the Khar Store is only a Furniture and Upholstery while the nearby Pali Hill stores
Garments, organic products, Body products and Jewellery. This also ensures convenience for the
customers since the products are either available in the same store or in nearby stores.
2.4.Promotion
Fabindia has traditionally relied only on word-of-mouth as a marketing tool. It believes that
the product speaks for itself and this strategy has up till now worked very well. Thus,
Communication for Fabindia is completely customer driven. In order to do this, it has started using
tools such as Mobile Marketing to tell customers about their new collection and offers like elf-ofseason sale etc and giving Advertorials in newspapers to increase awareness about its store
locations. Also, Fabindia uses a lot of in-store posters to create consumer awareness about the
products and where they come from, i.e. the rural suppliers etc.
INDIAN THREADS
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1
1
Fa b in id ia d o e s
n o t p ro m o te its
b ra n d th ro u g h
te le v isio n a d s .
It o n ly in d u lg e s
in sa le s
p ro m o tio n &
d isco u n ts.
PRODUC
T
CENTER
ED
S T R AT E
GY
Fa b in d ia
fo llo w s its
U S P w h ile
p ro d u cin g
its
m e rc h a n d i
se . ItTHREADS
u se s
INDIAN
th e S O F T
S E L L IN G
S T R AT E G Y
to se ll its
p ro d u cts.
S E L L IN G S T R AT E G Y
Fa b in d ia h a s
1 2 1 sto re s a ll
o v e r th e w o rld
a n d 1 0 E B O s in
D e lh i itse lf .
PUSH
S T R AT E G Y
C H A N N E L S T R AT E G Y
D IS T R IB U T IO N C H A N N E L
IN T E N S IV E
D IS T R IB U T
IO N
1
2
7.Competitor Analysis
BRANDS
PRICE
PLACE
PRODUCT
PROMOTION
FABINDIA
RANGE
VARIES
FROM
RS200/RS2000/-
TODYAY
FABINIDA HAS
141 RETAIL
STORES
ACROSS
INDIA AND 1
STORE EACH
IN DUBAI,
NEPAL AND
ITALY.
HOME
DCOR,WOMEN
APPARELS,MEN
APPARELS,BODY
CARE,FOOD AND
ETHNIC JEWELLERY
WORD OF
MOUTH
PROMOTIONS
RANGE
VARIES
FROM
Rs500RS3000/RANGE
VARIES
FROM RS
ANOKHI
BIBA
RANGE
VARIES
FROM RS
WOMEN
APPARELS,ACCESSOR
IES,
FOOTWEAR
TOTAL
STORES 150
BRAND
OUTLETS AND
225 MULTIBRAND
OUTLETS
WOMEN
APPARELS,ACCESSOR
IES,
FOOTWEAR, HOME
DECOR
WOMEN
APPARELS,ACCESSOR
IES,
HOME DECOR
INDIAN THREADS
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INDIAN THREADS
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4
INDIAN THREADS
1
5
culture alive.
8.2.2 Goals and Objectives of the Brand
The Round shape of the logo originates from the charkha hence, signifying the traditional and
designer aspect of the brand
8.3.2.1. The Color Palette
The brown color used in the logo suggests the humble & earthen aspect in the classical
sense
The blue color denotes the vibrant & modern element of the brand
8.3.3.Tagline
INDIAN THREADS
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INDIAN THREADS
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IN-HOUSE
STYLIST
IN-HOUSE
STYLIST
US
P
The USP of Indian threads is that it would provide a vast variety of fusion clothing under one
roof. It would be a one stop for the customers as all types of indo western clothing will be
available in Indian threads which no other brand is providing as of now.
Another USP is that it will have western silhouettes, cuts and Indian prints and motifs on it,
which will give exclusiveness to the products.
Also the brand will provide an in-house stylist who will help the customers to mix and match
different indo western garments together as it is difficult for the customers to combine those
garments appropriately and wear them.
8.6.STP
INDIAN THREADS
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INDIAN THREADS
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8.7.SWOT
SWOT
STRENGTHS
ANALYSIS
OPPORTUNITY
Less competition.
Peoples fascination
towards indo-western
culture.
Fusion clothing is in
vogue these days.
Market is still untapped so
less competition.
Increase in disposable
income of youngsters.
People are more fashion
conscious
Opportunity to go global
as people there are
inclining towards Indian
culture.
THREATS
WEAKNESS
People living in
bihar wouldnt
accept the brand
Nobody tired this
area of indo-western
Unorganized market
competition
Competitors like fabinida
anokhi etc.
Duplicity of prints and
styles.
There is a possibility that
this kind of clothing could
become fad.
Competition from
designers and boutiques
that provide customized
clothes.
The market of indo western
wear can be limited.
INDIAN THREADS
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8.8.DILO
Who is she?
An independent women who has grown up in urban nuclear family. She likes to dress into
an into western dresses. Being every specific occasion, she likes to wear for the living an
vibrant Indian festivals. She loves colour and knows the vibrant essence of Indian
handloom.
INDIAN THREADS
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The Mood board Of Indian threads signifies the Freedom of a woman. Indian threads is a
women oriented brand and hence the mood board is fairly colorful with very feminine colors
hence, reflecting the summer mood. These colors from the mood board will build up the brand
identity, as a number of pastel shades will be used in the designs.
INDIAN THREADS
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23.4.Pricing Objective
Status quo: the firm may seek price stabilization to avoid price wars and maintain a
moderate but stable level of profit.
INDIAN THREADS
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3
The brand will not indulge in any price wars with its competitors and will focus on
maintaining stability in the market. It will follow its competitor fabindia for setting the
prices. The brand will keep a moderate mark up and will not overcharge from its customers.
23.5.Pricing Strategy
Competitive pricing: Competitive pricing means tackling the price leader in the market
segment in which the company is operating. Where possible, the aim would be to set a
slightly higher price than the price leaders (say 7 per cent) and then launch a marketing
campaign to demonstrate that what Winkler calls a discernible product difference exists.
This means demonstrating that the companys products offers a distinct improvement over its
competitors.
If the firm cannot compete on quality it may have to set slightly lower prices or offer higher
discounts of at least 10 per cent but not more than 15 per cent or so.
Indian threads will adopt competitive pricing strategy for pricing its products. The prices of
the products of grassroots are very similar to its competitor fabindia. It is following fabindia
and will set its prices accordingly.
23.6.Promotional Pricing
Special event pricing: reducing prices in retail stores at certain times of the year (e.g.
immediately after Christmas) to attract customers.
As Indian threads is preferred by the customers mostly during special occasions, special
event pricing will be used. On festive occasions like diwali, holi, navratra etc. special
discounts and schemes will be introduced in the stores to pull the crowd.
INDIAN THREADS
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4
Indian Threads
Cult
Weaving the
Innovatortradition
experiment
al
colourful
jugalban
di
young & full of potential
Strategy is the direction and scope of an organization over the long-term: which achieves
advantage for the organization through its configuration of resources within a challenging
environment, to meet the needs of markets and to fulfill stakeholder expectations. There are
broadly three kinds of strategies that are used. The first strategy is Cost Leadership which is a
low cost strategy in which the company tries to design, produce and market a comparable
product more efficiently than its competitors. The second is the Differentiation strategy in
which the company tries to provide unique and superior value to its buyers in terms of product
quality, special features or after sale service.
The third strategy is Cost focus strategy. It is a low cost strategy that focuses on a particular
buyer group and attempts to serve only this niche to the exclusion of others. In using cost focus,
the company seeks a cost advantage in its target segment.
( Strategy formulation: situation analysis and business strategy)
Differentiation strategy will be used to price the products for Indian threads as it is targeted at
premium customers, who are willing to pay a higher price for innovative styles and cuts.
INDIAN THREADS
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INDIAN THREADS
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Finding: As per the application of percentage the majority of the respondents of total population
belongs to 15-20 years (44%), 29% of the respondents of total population belong to the age
group of 21-26, 18% of the total population belong to the age group 27-31 years. Whereas the
minority belongs to the age group 32 above (9%).
INDIAN THREADS
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7
Finding- As per the application of the percentage, the majority of the respondents of the total
population belongs to the South Delhi area (25%), 24% of the respondents of the total population
belong to West Delhi, 17% of the respondents of the total population belong to Central Delhi,
14% of the respondents of total population belong to East Delhi, 12% of the respondents of total
population belong to North Delhi, Whereas the minority of the total population belongs to NCR
(8%).
INDIAN THREADS
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INDIAN THREADS
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26.67%
25.00%
20.00%
tops Rs.500-999
20.00%
18.33%
16.67%
10.00%
0.00%
tops Rs.1500-1999
tops Rs.2000-2499
15.00%
5.00%
tops Rs.1000-1499
7%
1.67%
1.67%
18 -24 Yrs
5%
1.67%
1.67%
25-31 Yrs
As per the data analysis, it is found that among the respondents between the age of 18-24 years
about 27% are ready to spend about Rs.2000- 2499 on an indo western top., 20% are ready to
spend around Rs.1500- 1999 and about 7% are willing to pay above Rs. 2500.
The respondents among the age of 25-31 years 18% of them are ready to pay Rs.2000-2499 on
an indo western top. Then about 17% are willing to pay around Rs.1500- 1999, 5% of them
above Rs.2500 and about 3% are willing to pay between Rs.500-1499.
Hence, the price range of tops in Indian threads will be kept by keeping the preferences of the
customers in mind, which will be around Rs.1500-2500.
INDIAN THREADS
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WillingnesstospendonanIndowesternbottom
30.00%
26%
25%
25.00%
20%
20.00%
Bottom Rs.1500-1999
Bottom Rs.2000-2499
15.00%
10.00%
5.00%
0.00%
10%
0.08
5%
3.33%
2%
18 -24 Yrs
25-31 Yrs
As per the data analysis, majority of respondents in the age group of 18-24 years are willing to pay
Rs.2000-2499 and the majority in the age group of 25-31 years is willing to pay R.s 1500-1999.
Hence, the pricing of the bottoms of Indian threads will be around rs 1500- 2499.
Willingness to spend on an Indo-Western dress
23.33%
21.67%
20%
Dress Rs.1500-1999
0.15
11.67%
0.1
0.05
0
Dress Rs.2000-2499
Dress Rs.2500-2999
10%
5%
6.67%
2%
18 -24 Yrs
25-31 Yrs
As per the data analysis, majority of the people among both the age groups are willing to spend
Rs 2500-2999. Then the second preference is to pay Rs 2000-2499 and after that is Rs 30003499.
Keeping the above data in mind the dresses of Indian threads will be priced around rs 2000- Rs
3499.
Preference to wear Indo-Western clothing occasion wise
INDIAN THREADS
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1
office
special occasion
hanging out with
friends
4%
in daily routine
not sure
As per the data analysis, respondents who belong to the income group of 1.1 lac 3 lac, 16% of
them want to wear indo western on special occasions and 11% of them want to wear it when they
are hanging out with friends. Then 9% of them would like to wear it daily and the least
preference is wearing it to office.
The second highest percentage comes from the income group of above rs 3 lac where highest
inclination is wearing indo western on special occasions and then while hanging out with
friends. Here more people like to wear it to office and less want to wear it daily.
Hence, The brand Indian threads would have a vast collection focusing on Clothing for special
occasions.
4.6
4.43
3.98
2.97
2.86
2.2
INDIAN THREADS
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As per the data analysis, When the respondents were asked about their preferences while buying
apparels it was found that the highest preference (4.6) is given to latest fashion and it can be said
that the customers are very fashion conscious. The next important factor is the brand name so it
can be concluded that customers are brand conscious too (4.43). So on is the design and comfort
factor (3.98 & 2.97 respectively). The least preference is given to the price and material
therefore it can be said that the customers are indifferent towards the price of the product and
show more concern for the latest trends and fashions.
22%
20%
10%
Mall
15%
15%
7%
0.05
5% 2%
2%1% 2%0.01
2%
0%
9%
21%
11%
As per the data analysis, it was found that the people who belong to the income group of 1.1 lac3 lac 22% of them and the people falling in the income group of above 3 lac 21% of them prefer
to shop from malls. The next liking is towards high street markets. Least preference is towards
online shopping.
Due to this willingness of shopping at malls and high streets, EBOs for grassroots are opened at
malls and high street markets, its flagship store being in Greater Kailash Market, which is a high
street market.
INDIAN THREADS
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3
Through the study it is found that the most known brand to the target customer that provides
indo western is fabindia.(34%) The next most known brands are anokhi & global desi (10%)
followed by W & biba (7%) Some said (2%) that they go to unorganized markets like sarojini ,
janpath to get indo western.
Hence,can be concluded that Fab India is the main competitor of Indian Threads.
3
4
30%
30%
25%
20%
Yes
20%
No
15%
12%
10%
5%
0%
4%
6%
Below 18 Yrs
4%
18 -24 Yrs
6%
8%
8%
2%
25-31 Yrs
32-38 yrs
Above 38 Yrs
In the analysis it was found that from a sample size of 100 people those between the age group
of 18- 24 years (30%) are the most willing to buy fusion clothing. The second highest number of
people belongs to the age group of 25-31 years. So the target age group for grassroots ranges
from 18-24 and 25-31, where 18-24 emerges to be the primary target and the latter is the
secondary target.
Gender females
Income the target income group is people having monthly income from Rs 1 lac - 3 lac a
month and above. These people as interpreted from the graph are the most willing to buy indo
western clothing.
INDIAN THREADS
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5
35%
30%
27%
25%
20%
13%
9%
15%
10%
5%
2% 1%
Yes
8%
No
4% 3%
0%
The finding from this graph is that the population that fall between the income group of Rs 1.1
lac- Rs 3lac (42%) out of them 33% prefer indo western clothes. And 27% of the people
belonging to the income group of above Rs 3 lac prefer indo western. Therefore s has clear
income groups to target which is earning roughly above a lac for the month.
INDIAN THREADS
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20%
below 5K Rs
15%
0.11
0.11
0.1
0.08 7%
10% 0.07
0.04 5% 0.04
5% 0.04
0.01
1% 0.01
1%
0%
5K-10 K Rs
10001 Rs-15K Rs
15001 Rs-20K Rs
5%
Above 20k Rs
It is analyzed that out of 34% of females who spend between Rs 15000- Rs 20000 on apparels
20% of them belong to the income group of people who have Rs1.1 lac to Rs 3 lac a month and
10% fall in the income group of above Rs 3 lac per month. The people who spend around Rs
10,000- Rs 15,000 ie (27%) out of them 11% belong to the income group of Rs 1.1 lac- Rs 3 lac
and 8% belong to above rs 3 lacs income group. This target income group for grassroots spends
around rs 15000- rs 25000 per month, which is quite high and benefits grassroots as it can price
its products accordingly.
Lifestyle the customers likes to do social networking and wants to live life to the fullest. They
like to have fun be it a weekend or weekdays and they want to enjoy with friends and family.
Opinion The customers know what they want and are choosy. Most of them prefer garments
that are of latest fashion. They are opinionated and have a mind of their own.
28. Behavioural
Usage - Though the analysis it was found that the customers will wear garments brought
from grassroots more than 2-3 times a week but less on daily basis.
21.42%
Daily
20.00%
15.71%
14.29%
15.00%
10.00%
10.00%
0.00%
21.42%Student
7.14%
5.70%
5.00%
1.43%
Working Professional
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Through the analysis it is found that the willingness to wear indo western on a regular basis is
more on the part of the students as compared to working professionals. About 21% students are
willing to wear indo western on a daily basis and only 1.5% working professionals are ready to
wear it daily. Also more students are willing to wear it 2-3 times a week as compared to the
working professionals. So the main target of Indian threads will be the students
Buyer readiness They are aware & informed about other indo-western brands and shop from
there regularly.
Benefit sought The products from grassroots can be worn on both casual and formal occasions.
\
18 -24 Yrs
25-31 Yrs
It was analyzed through DILOs, CONDUMER INSIGHTS AND MARKET RESEARCH that
when people were asked about the variety that is offered by existing indo western brands
Desigual was voted as the brand that offers highest variety as compared to others. Majority of
the customers said that no brand offers good variety in indo western apparels. So it can be
concluded that there is a need of brand that offers large varieties in indo western. Indian threads
would position itself as a brand that would provide FUSION WEAR that can be worn formally
for an Indian event or festival as well as it can be worn comfortably to college also. It would be
positioned as a multitude brand in the minds of the customers where they will get a large
variety of designs, colours, silhouettes and prints to choose from.
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REFRENCING
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9
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0
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1