Expansion In UK

SUBMITTED BY:- Sagar Deshmukh (12770415) Amit Sharma (12744615) Huvem Gogna (12781340) Amruta Bhole (

ABOUT FABINDIA
Fabindia is India's largest private platform for products that are made from traditional techniques, skills and hand-based processes. Initially commenced as a village based industry in 1960 by John Bissell Links over 40,000 craft based rural producers to modern urban markets Promotes inclusive capitalism, through its unique COC (community owned companies) model

Current Locations

The stores of FABINDIA are located all over the world with 196 stores in all the major cities and states of India. FABINDIA offers its stores in various international places including

Italy Mauritius Singapore

Nepal India Online Store

PRODUCT PORTFOLIO
Its product ranges from : Garments for men and women. Accessories Home linen and furnishing. Home products Floor coverings Body care products Organic food products and ethnic jewellery

MARKETING MIX
PLACE PRODUCT
It has 169 stores location across India. Increasing coverage internationally Handmade products, quality and style is maintained Wide range of products i.e. from garments to organic food Supports artisans. This is a very strong customer value leveraged by FABINDIA Value for money Competitive Pricing Affordable by all, INR 200 to INR 2000.

PROMOTION

Traditionally relied on word of mouth advertising. Product speaks for itself and this strategy has uphill now worked very well. Problem customer do not know the location of the store Solution Implemented mobile marketing, advertorials in newspaper.

Differentiates its store according to the products stored.

PRICE

COMPETITOR ANALYSIS
Primary competitor
1.

Strength

Weakness

Retailing houses
2.

National presence of outlets. 1. Diversity of product is very less. Retailing expertise and competitive pricing

Designer Boutiques

1. Scope of product customization. 2. High level of customer intimacy.

1. No uniformity in price across products.

COMPETITOR ANALYSIS
Secondary competitor Tailoring outlets
1.

Strength
Reaching out to customers with large dispersion. Ensures convenience of demanding service.

Weakness

1. Very fragmented business approach.

2.

NGOs promoting handicrafts

1.

2.

Strong community based operation. 1. Lack of retailing expertise and Complementary products inability to minimize manufactured with other cost. firms.

STRENGTHS: Differentiable products. Brand recognition and loyalty. Diverse product mix In house manufacturing. Price trend setters. Different categories of store.

WEAKNESS: No promotion strategy. Limited business channels. Inconsistent product quality. Low awareness.

SWOT ANALYSIS

OPPORTUNITIES: Promoting e-business channel Organic food products Customer acquisition strategies

THREATS: Substitute producing competitor. Not in touch with fashion trends.

Why Choose UK?

Major Importers of Indian Handicraft Products

Tax in Import to UK
Bedsheets mattress
3.70 %

Category

Handicrafts

Imitation Jewellery
4.00 %.

Import Duty

0.00 %.

VAT

Standard Rate + reduced rate 5%

Standard rate

Standard rate

The Standard VAT Rate is 20%.

Tax in Import to UK
Import(Cotton Apparels) Organic products Organic food Silk clothing

8.00 %
Standard rate.

4.00 %
Standard rate

10.90 %
0 (No VAT)

3.00 %.
Standard rate

All handicrafts exports from INDIA are FREE and regulated by ITC through public notices and capping.

FUTURE PLANS
The future plans of FABINDIA includes leveraging the organic products section, since it is still in a nascent stage in India. It plans to expand nationally and internationally . It is also trying to reduce the number of defects in the products to a minimal which includes bleeding of color, shrinkage etc. For FABINDIA William Bissell has set a very ambitious target of reaching 250 stores and a turnover of rupees 2000 crores at the end of 2011. The growth is expected to come from new stores as well as increase in sales from existing stores. This increase will be achieved by increased emphasis on premium products. Growth in locations was expected to come from expansion in overseas market as well as greater penetration in the markets in the smaller towns. FABINDIA planned to expand significantly in Tier II and Tier III cities .