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In May 2008, India-based exporter and
retailer of textiles and home accessories, Fabindia Overseas Pvt
Ltd (Fabindia), announced that by the end of the year, about
20,000 weavers from backward communities would become
shareholders in about 35 of its subsidiary companies. Commenting
on the development, Managing Director of Fabindia, William
Bissell (Bissell), said, "Weavers now have a sense of ownership
of the company. They now understand when we tell them not to
raise their labor costs as the higher profits will come back to
them as dividend as well as capital appreciation."1
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Fabindia was founded by John Bissell, who had worked
as a consultant for Ford Foundation 2,
3. In 1958, he traveled to several
small villages across India where he interacted with weavers and
craftsmen and discovered the rich heritage of Indian fabrics and
textiles.
With the aim of showcasing Indian handloom and textiles in the
international market and providing employment to traditional artisans,
he founded Fabindia in 1960 as an export house.
With the growing acceptance of handlooms and handicrafts by urban Indian
consumers in the 1970s, Fabindia turned the focus from exports to the
domestic market. Its retail operations began in 1976, when it opened its
first retail outlet in New Delhi.
By 2008, Fabindia had emerged as a retailer selling a wide range of
products from Indian handicrafts to organic foods, with 84 stores in
India and one store each in Rome, Dubai, and Guangzhou. Fabindia had a
turnover of Rs.4.5 billion in 2007.4
Analysts attributed its success to its unique marketing practices.
Fabindia procured products from different corners of India and sold them
across the world. The products were priced reasonably and were sold
through its exclusive stores. It did not advertise much. Fabindia
operated in a niche market and did not try to compete with mainstream
manufacturers or retailers.
Fabindia worked closely with artisans and villagers located across
India, and provided inputs related to design, color, production
techniques, and raw materials, in order to obtain high quality products.
Fabindia's product range comprised textiles and non-textile items.
The textile range, which accounted for a major portion of Fabindia's
products, included ready-to-wear garments and accessories, upholstery
fabric, and furnishings.
The garments included Indian and western wear for men, women, and
children, which were made of natural fabric and vegetable dyes and
showcased designs that were international in style and cut.
It also designed a line of trendy and informal wear for youngsters under
the brand 'Teen Spirit'. "At Fabindia, we try to cater to the needs of
every age group,"5 said Poonam
Singh, Market Region Head of Fabindia
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1] MK Venu, "Weavers to Become Shareholders of
Fabindia Subsidiaries," www.economictimes,indiatimes.com, May 6, 2008.
2] The Ford Foundation is a New York-based charitable
foundation. It was founded in 1936 and operated through 12 offices located
across the world as of 2008.
3] Earlier, he had worked as a buyer for New York based
department store chain Macy's.
4] Bindu D. Menon, "Fabindia to Enhance Presence,"
www.thehindubusinessline.com, February 22, 2008
5] "Fabindia Launches Teen Spirit," www.moneycontrol.com,
October 11, 2007. |
