Write An Essay On Swot Analysis Of Fabindia

Identification & analysis of the issues/problems.

Initially, Fabindia was into export business of handcrafted merchandise produced by the artisans of India. With the emerging retail trend, Fabindia began to expand the number of retail stores in India. It had always maintained its core position as a seller of Indian ethnic products. They also improved their product design. By 2006, Fabindia expanded to body care products, organic food, and morphed from a furnishings and garment retailer to a lifestyle retailer with a strong national presence.

Because of the changing retail landscape in India, there was a slowdown in its growth. Various factors such as higher income levels, new technology, lifestyle trends and easy credit access led to the change in the taste of middle class consumers. Fabindia consumers had more options like Kilol, Anokhi, Cottons, Lifestyle and Shopper’s Stop, who also started selling ethnic wears. There was also an equivalent competition from India’s e-tail revolution, which had seen the rapid expansion of e-commerce retailers offering substantial discounts.

Because of money to spend and a taste of shopping, there was no brand loyalty among consumers. Also, there was an increasing preference for western styles rather than ethnic wear and there was also demand for a mix of western and Indian elements in design with more casual look.

Brand study results concluded that consumers saw Fabindia within a larger space that also included MBO’s like Lifestyle, Pantaloons, Shopper’s Stop and Westside. Variety was the key and variety seeking behaviour was the norm. With more options to choose from, loyalty was less clear. Consumers perception toward Fabindia was “middle-aged and expensive”. Also there was less awareness among consumers about