fabindia

KOHINOOR BUSINESS SCHOOL

KHANDALA

Project submitted by

Sarang Ohol 8160

Priyanka Arya 8145

Shailesh Shukla 8163

Vikrant Singh Tomar 8176

Shailesh Kumar 8162

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27th October 2009

ACKNOWLEDGEMENT

We are thankful to professor Jayseelan for giving us an opportunity to work on such a project which helped us to know about the netigrities of International Marketing as a whole and for clearing our concepts as and when required.

After undertaking this project we have learnt all the concepts in practical terms.

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INDEX Fabindia – Introduction………………………………………………………………………………………..4

History………………………………………………………………………………………………………………...7

Philosophy…………………………………………………………………………………………………………..9

Indian Apparel Industry……………………………………………………………………………………..10

Success mantra of Fabindia………………………………………………………………………………...11

Why take Fabindia to France………………………………………………………………………………12

Why France………………………………………………………………………………………………………..13

France – An overview…………………………………………………………………………………………14

India entering France – PEST Analysis………………………………………………………………...16

Indo-French trade relation…………………………………………………………………………………20

France Apparel Industry…………………………………………………………………………………….22

Fashion Capital…………………………………………………………………………………………………..24

French fashion style as of

today…………………………………………………………………………..25

Fabindia’s 4P’s in France…………………………………………………………………………………….26

Fabindia’s 4C’s in France…………………………………………………………………………………….35

STP of Fabindia in France…………………………………………………………………………………...36

SWOT Analysis…………………………………………………………………………………………………..37

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“Fabindia was founded with the strong belief that there was a need for a vehicle to market the vast and diverse craft traditions of India and thereby help fulfill the need to provide and sustain rural employment”

“Our endevour is to provide customers with hand crafted products which help support and encourage good craftsmanship”

John Bissell

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THE FABULOUS FABINDIA

The Fabindia story is really fabulous. It started in the year 1960 with a strong belief that there is a need for marketing the vast and diverse craft traditions of India. Thereby provide rural employment. Their endeavor has been to provide hand crafted products which help support and encourage good craftsmanship. Fabindia has managed to create a sustainable employment by providing jobs to close to 15000 artisans today.

Fabindia- Fabric of India

In 2009, with more than 90 stores across India, Fabindia, is looking toward s expanding its operations overseas. Initially an export house, Fabindia has emerged as one of the leading players in the ready to wear segment, with the image of a quintessential ‘Indian’ brand. The questions now confronting Fabindia are how it is supposed to take its expansion plans forward and increase its global reach, and whether the ‘Indian’ brand can gain enough of a foothold in the international market. Fabindia has also become a fashion statement in the “elite” and “intellectual”

customer segments. It had also come to represent organic products. Fabindia is an Indian chain of stores retailing ethnic products made by craftsmen from rural India. The products of Fabindia are mainly sourced from villages helping to provide and sustain rural employment in India. They are currently produced by over 15,000 artisans and craftsmen across India. The hand crafted products also encourage good craftsmanship. 

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Awards for Fab India

• Fab India was awarded “Best Retail Brand, 2004” by The Economic Times of India.• Fab India also got “Designer Promoting Indian Craft or Technique award” as Hall of Fame reward.

The material & machines used by Fab India

• Hydro Extractors: Direct drive, self balancing and high speed DC injected broke are suitable for the merchandise centrifuge after dying or washing. High speed, mainly ensures undersized extraction and consumes less energy.

• Dry-Cleaning Machines: The machines Fab India uses comprise powerful filter, with low spin extract. The machine at Fab India for dry cleaning is specifically designed in order to remove greasy and oily trace marks from woolen or quality garments

Growth of Fab India

The first Fab India store of retail was built in New Delhi, Greater Kailash with an assortment of home lines, durries and upholstery fabrics. By eighties Fab India started to produce garments prepared from hand block and hand woven printed fabrics. As years passed by, the marketing focus of Fab India shifted to the India’s local retail market from exports. At present, Fab India enjoys a successful business of retail presenting textile industry of India an assortment of home products and natural fabrics including cutlery, pottery, home accessories, lamps, furniture etc. In 2004, Fab India launched a product line of organic foods, by extending the partnership to rural area farmers.

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HISTORY

In 1958, well before American companies were sourcing from India, John Bissell left his position as a buyer for Macy’s New York to work as a consultant for the Ford Foundation in order to develop India’s export potential in its emerging textile industry. What Bissell discovered was a village-based industry with a profusion of skills hidden from the world.

Determined to showcase Indian handloom textiles while providing equitable employment to traditional artisans, Bissell established Fabindia in 1960 in order to fuse the best aspects of East/West collaboration.

Fifteen years later the first Fabindia retail store was opened in Greater Kailash, New Delhi with a range of upholstery fabrics, durries and home linens. By the early eighties, we started producing garments made from hand woven and hand block printed fabrics.

Over the years the focus of Fabindia's marketing shifted from exports to the local Indian retail market. What started as an export house has today become a successful retail business presenting Indian textiles in a variety of natural fibers, and home products including furniture, lights and lamps, stationery, home accessories, pottery and cutlery. Extending this partnership to the farmers in rural areas, Fabindia launched its organic food products range in 2004. Fabindia's authentic Personal care products range is also being launched at all Fabindia outlets.

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Fabindia sources its products from over 15000 craft persons and artisans across India. They support the craft traditions of India by providing a market and thereby encourage and sustain rural employment. Today they have retail outlets in all major cities of India - 108 at last count.

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PHILOSOPHY 

Fabindia was founded with the strong belief that there was a need for a vehicle for marketing the vast and diverse craft traditions of India and thereby help fulfill the need to provide and sustain rural employment. We blend indigenous craft techniques with contemporary designs to bring aesthetic and affordable products to today’s consumers. Our endeavor is to provide customers with hand crafted products which help support and encourage

good craftsmanship.

Their products are sourced from villages all over India. Fabindia works closely with artisans by providing various inputs including design, quality control, access to raw materials and production coordination. The vision continues to be to maximize the handmade element in our products, whether it is hand woven textiles, hand block printing, hand embroidery or handcrafting home products.

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INDIAN APPAREL INDUSTRY – AN OVERVIEWThe apparel industry is one of the India’s largest exchange earners, accounting for nearly 16% of the country’s exports. The 1996 Indian textile exports approximately amounted to Rs. 35,000 crores of which apparel occupied over Rs. 14,000 crores. The Traditional clothes market is growing at 11% a year.

An estimated 30,000 readymade garment manufacturing units and around 3 million people are working in the Indian textile industry. Many leading fashion labels are being associated with Indian products. However, till today, the industry is dominated by sub-contractors and consists mainly of small unitsof 50 to 60 machines. India’s supply base is medium quality, relatively high fashion, but small volume business.

The weaving and knits sector lies at the heart of the industry. In 2004-05, of the total production from the weaving sector, about 46 per cent was cotton cloth, 41 per cent was 100% non-cotton including khadi, wool and silk and 13 per cent was blended cloth. Three distinctive technologies are used in the sector – handlooms, powerlooms and knitting machines. They also represent very distinctive supply chains. The handloom sector (including khadi, silk and some wool) serves the low and the high ends of the value chain – both mass consumption products for use in rural India as well as niche products for urban & exports markets. It produces, chiefly, textiles with geographical characterization (e.g., cotton and silk sarees in Pochampally or Varanasi) and in small batches. Handloom production in 2003-04 was around 5493 mn.sq.meters of which about 82 per cent was using cotton fibre. Handloom production is mostly rural (employing about 10 million, mostly, household weavers) and revolves around master-weavers who provide designs, raw material and often the loom.

Cotton remains the most significant raw material for the Indian textile industry. In 2003-04, 3009 mn kg of cotton was grown over 7.785 mn acres. Other fibres produced are silk (15742 tonnes), jute (10985000 bales), wool (50.7 mn kg) and man-made fibres (1100.65 mn kg). Cotton grows mostly in western and central India, silk in southern India, jute in eastern and wool in northern India. Significant qualities of cotton, silk and wool fibres are also imported by the spinning and knitting sectors. (Except for garments, all data in this section was obtained from OTC 2004 and Texmin 2005.)

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Today, the textile and apparel sector employs 35.0 mn people (and is the 2nd largest employer), generates 1/5th of the total export earnings and contributes 4 per cent to the GDP thereby making it the largest industrial sector of the country. This textile and apparel economy is worth US $37 bn and its share of the global market is about 5.90 per cent. The sector aspires to grow its revenue to US $85bn, its export value to US $50bn and employment to 12 million by the year 2010 (Texmin 2005).

THE SUCCESS MANTRA OF FABINDIA IN THE HOME COUNTRY…..

FABINDIA – MADE IN INDIA

Is it a brand or lifestyle? Perhaps both. What make Fabindia successful is the way it connects the sensibilities of the masses and the classes.

Without any advertising this one time small retail store has managed to create such a huge equity in the marketplace that it has become a household name today. You want to buy some authentic Indian clothes, just walk inside any Fabindia store and you have it. The store design is also very unique, bright colours, local motifs, spacious displays and lots of free space for consumers to touch and feel. A business model, which many has tried to copy Without much success.

Goes on to show it’s not necessary to do advertising or hire an agency to create a brand. Fabindia also shows us how a build a sustainable business model by bringing people together. But then Mr. John Bissell was a visionary. He had the conviction to turn that vision into a reality. "Our constant endeavour is to resist the temptation of going `mainstream' which is more of a commodities game, and develop and widen the niche markets in which we are the dominant player," says Mr. William Bissell, Managing Director, Fabindia.

Four things that Fabindia did right, right from the very beginning:1. Create an exquisite and exclusive product2. A price point that defines that exclusiveness yet not out of reach of common man3. Operate at a niche market with limited accessibility that builds an aura

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4. Never advertise but make people talk about the product and shopping experience

The solution does not always lie in advertising or the communication. Innovation can be at any level, you need an eye to identify what that innovation would be and how easily that can be en-cashed upon in the most interesting yet engaging manner.

WHY TAKE’

FABINDIA TO FRANCE??? Fabindia, the 1st word that comes to our mind is ethinicity. It carries the culture of India. That’s why the idea of taking Fabindia to abroad came to mind.

Fabindia is the name of the model itself which is ready to give new arsenal to the tempered as well as temperamental people. The khadi, kurta, the leathe mojri, the basic white and blue shirts, durries….retaining Indian crafts traditions and

celebrating natural fibres and textiles in atrendy way.

With the emphasis on tradition and textile, the appeal of Fabindia lies not in its loga but in the intrinsic value of the product that puts food on the plates of the craftsmen.

The congregation of the this desi style is a representative mix of India in demographics as well as psychographics. Designer Sabyasachi Mukherjee likens it with Freida Kahlo’s painting of a Mexican bus: ‘It is perhaps the only brand where the bourgeois and the commoner can meet without apology”.

Here, Fabindia is not only into cotton Indian dresses but its in all sort of dresses be it shorts, skirts, pajamas,etc. Therefore, while entering in france it need not change its product line as it is already in tredy collections which actually France is known for.

Also the reason behind entering into France is that even it has got a medittarian climate like India. That menas the climatic conditions are same in both the countries, therefore the the company will have an advantage over here that is – it need not change its product line in France. It can come up with the same cotton apparels in France which will help them to cut down its cost.

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In a way it will help the country in 2 things -

1. Would carry India’s culture to France2. Would help in increasing the margins of the rural artisans and also increase

in the employment rates

WHY FRANCE???Bilateral relations between the Republic of India and the French Republic were established in 1947 and both nations have since established close co-operation in defence and commerce.

Strategic cooperation

France and India have extensive strategic co-operation, with the military services of both nations conducting joint exercises. India has purchased much military equipment from France, especially the French Mirage 2000 fighter aircraft and the Scorpène class submarines. France was one of the few nations who did not condemn India's nuclear tests in 1998 and has supported India's bid to become a permanent member of the U.N. Security Council as well as G-8. France is one of the largest suppliers of nuclear fuel to India, and signed a "Framework Agreement for Civil Nuclear Co-operation" in January 2008 during French President Nicolas Sarkozy's visit to India. During the Indian Prime Minister Manmohan Singh's visit to France after India's waiver from the Nuclear Suppliers Group (NSG), both nations signed an agreement that would pave the way for the sale of French-made nuclear reactors to India onSeptember 30, 2008. France and India also maintain a discreet "strategic dialogue" that covers joint cooperation against terrorism. However, India has objected to France's military assistance to Pakistan, with whom it is in conflict. In July 2009 the French government invited the Indian prime minister Manmohan Singh to be their chief guest at the French national day (Bastile day) celeberations. Both countries pledged for closer economic, strategic & cultural cooperation on this occassion.

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FRANCEFacts and Statistics

Location:  Western Europe, bordering Andorra 56.6 km, Belgium 620 km, Germany 451 km, Italy 488 km, Luxembourg 73 km, Monaco 4.4 km, Spain 623 km, Switzerland 573 km

Capital:   Paris

Climate:  generally cool winters and mild summers, but mild winters and hot summers along the Mediterranean; occasional strong, cold, dry, north-to-northwesterly wind known as mistral

Population:  60,424,213 (July 2004 est.)

Ethnic Make-up: Celtic and Latin with Teutonic, Slavic, North African, Indochinese, Basque minorities

Religions:  Roman Catholic 83%-88%, Protestant 2%, Jewish 1%, Muslim 5%-10%, unaffiliated 4%

Government:  Republic

France is ranked 20th in the world in terms of population with 60.424 million people residing there in mid 2004. According to data obtained from World Bank Indicators, national growth rate in France during 1997-2003 was 0.4% slightly less than that of high-income countries' group as a whole.

France is moderately populated with 111 persons living per sq km in 2004. Almost half of the population lives in Paris, Lyon, Marseille/ Aix-en-Provence, and Lille.

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76% of the people live in urban areas and enjoy a longer life (life expectancy at birth in France is 79 years, third highest among all countries of the world,) according to (1997-2003) World Bank figures.

The UNDP 2004 report shows that 8 % of France's population lives below income poverty line (50% of median household income). Gross primary enrollment, which denotes the percent of school-age population, is 105, with 106 for male and 104 for female population.

Adult Literacy rate is the same as other high-income countries, 99 %. France is ranked 16th in 177 countries of the world in terms of human development index.

France has a population of approximately 58 million people and is the largest West European country, approximately 4/5 the size of Texas. France does not have an official religion, but the majority of French citizens are Roman Catholic. France is home to approximately 4.5 million foreigners, many of whom are from other European countries or former Communist countries. Education is of great importance to the French.  This is demonstrated by the fact that the educational system is almost free of charge from the primary school through the Ph.D. level,  for French citizens.

French clothing is not only inherently chic, but it is also legendary in its design and rich history. From exquisitely crafted haute couture to Coco Chanel's little black dress, French clothing has been admired and loved by fashion connoisseurs since the reign of Louis XIV. As many fashion houses dissolve because of lack of public interest or economic woes, many French clothing companies have thrived even after the deaths of their legendary creators.

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INDIA ENTERING FRANCE - PEST ANALYSIS

POLITICAL FACTORS

France has a REPUBLICAN GOVERNMENT.

The government France is called a republican government. The Founders read thatrepublican government was one in which:• The power of government is held by the people.• The people give power to leaders they elect to represent them and serve theirinterests.• The representatives are responsible for helping all the people in the country, not just a few people.

The advantages of having republican governmentThe Founders thought a republican government was the best kind of government theycould choose for themselves. They believed that the advantages of republicangovernment were:• Fairness. They believed that laws made by the representatives they elected wouldbe fair. If their representatives did not make fair laws, they could elect others whowould.• Common welfare. The laws would help everyone instead of one person or a fewfavored people.• Freedom and prosperity. People would have greater freedom and be able to livewell.

A republic is a form of government in which the head of state is not a monarch and the

people (or at least a part of its people) have an impact on its government. The word

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'republic' is derived from the Latin phrase res publica which can be translated as "a public

affair".

Both modern and ancient republics vary widely in their ideology and composition. The

most common definition of a republic is a state without a monarch. In republics such as

that of France, the executive is legitimated both by a constitution and by popular suffrage.

In the United States Founding Fathers like James Madison defined republic in terms

of representative democracy as opposed to only having direct democracy, and this usage is

still employed by many viewing themselves as "republicans". In modern political science,

republicanism refers to a specific ideology that is based on civic virtue and is considered

distinct from ideologies such as liberalism.

Most often a republic is a sovereign country, but there are also subnational entities that are

referred to as republics. For instance, Article IV of the Constitution of the United

States"guarantee[s] to every State in this Union a Republican form of

Government." The Soviet Union was a single nation composed of distinct and legally

sovereign Soviet Socialist Republics.

The kind of government that France has undertaken certain decisions in regards of policies related to exports and imports and are also favourable for the foreign direct investments and it wont create any problems for the company to come and establish its business in France.

Such kind of enviornment will help Fabindia to achieve its position in the market. Basically, its favourable for the working and success of Fabindia.

ECONOMICAL FACTORS

Indo-French Economic Relations

Over the past few years, there has been a significant increase in exchange of high level visits between India and France and a long-term partnership is taking shape between the two countries.

Both countries are actively engaged in providing impetus to the economic relations by identifying various areas where untapped complementarities hold forth the promise of further growth. France and India have instituted agreements to provide protection to bilateral investment from each other, and also to avoid double taxation. Apart from

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meetings of the high-level Joint Economic Commission (the 12th Session of which was held on 4th November, 2003 in Paris), which provides guidance for the overall economic relationship, sector-specific consultations take place at regular intervals between the two governments to facilitate cooperation in areas like Energy, Telecommunications, IT, Mining, Roads, Urban Development, and Agriculture. In addition, there are increasingly active interactions between the Commerce and Industry Associations of the two countries and between individual companies.

Apart from trade and investment, there are a number of instruments of economic dependency of India on France. Among them include, French bilateral assistance to India. The Financial Protocol is the chief instrument of such assistance though there are others such as the CFME action, the Industrial Co-operation programme with the Ministry of Industry, Support Fund for Enterprises and the Joint Indo-French Centre for Applied research.

SOCIAL FACTORS

In comparison with their American fashion-obsessed counterparts, the French have a very different approach to their clothing purchases. Rarely do the French buy items on sale. In addition, the French consider their clothing, jewelry and handbags to be investment pieces to pass on to the next generation. Rather than stuff their closets with half-priced items that are cheaply made, the French purchase a few pieces of clothing that are more expensive but will last for decades instead of one season only.

The less-wearable chiffon tops and the white and silver flowing skirts in geometric shapes are the most in-thing in the fashion world of France. The fashion of France has by and large been inspired by the Egyptians. The sequined bands tied by transparent silk are the typical characteristics of today's French fashion.

Appearance

The French are very conscientious of their appearance. Dress conservative and invest in well-tailored clothing. Patterned fabrics and dark colors are most acceptable, but avoid bright colors. French businessmen do not loosen their ties or take off their jackets in the office. Women should also dress conservatively.  Avoiding bright or gaudy colors is

recommended. Women should also avoid any glitzy or overpowering objects, such as flashy jewelry.

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The French are very aware of their presence, and are extremely proud of their heritage. They boast of their long history and their important roles in world affairs, as well as being known as a world center for culture.

TECHNOLOGICAL FACTORS

France is a developed country and is well advanced in terms of technology. It a a leader in exporter of nuclear technilogy. Being well versed with technolgy will help the company to increase its production and reduce its production cost. But this can be done only with specific products and not all the products can be manufactured with the help of machines. But towards the end it will be helpful to the company at a large.

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INDO-FRENCH TRADE RELATION

FRANCE IN INDIA

France is India's 5th largest trading partner in the EU (after the UK, Belgium, Germany and Italy). The European Union is the second most important destination of India's exports and France accounts for 2.05 % in it. France's share in India's imports was 1.3% in 2004-05.

India's exports to France increased from USD 1119.03 mln in 2003-04 (April-Feb) to USD 1443.06 mln in 2004-05(April-Feb), making a growth of 28.96 in one year. India's imports from France were USD 988.11 mln in 2003-04 million (April-Feb) and USD 1237.03 mln in the same period in the last fiscal representing an increase of 25.19%.

French exports to India include electrical equipment, organic chemical products,

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aeronautical & space construction products, mechanical equipment, general & special usage machines, and pharmaceutical products. Indian exports to France consist of both a)traditional items such as garments, leather, textiles, raw cotton and yarn, and marine products, and b) non-traditional items such as automotive components, electronic and rubber components, chemicals and dye-stuffs, pharmaceuticals, granite, and consumer durables are showing promising growth.

INVESTMENT

France is the 7th largest investor in India with total FDI amounting to Rs 2822 crore (August 1991 to November 2004). However, in comparison to other European countries, its share is less. Netherlands, UK and Germany have brought in more FDI inflows in India. Key sectors of interest to France include power, hydrocarbons (petroleum and petroleum products), telecommunications, auto parts, agro-industries, drugs and pharmaceuticals and environment.

The French companies' presence is nevertheless diversified. Nevertheless, the French presence (investment & trade) appears, in view of our available expertise, undoubtedly weak in comparison to the potentials and needs of the Indian market. The image of India's technologies and know-how in the food-processing sector needs to be stressed further.

A number of exercises have been recently conducted by France to present and promote India'a national offer in partnership with ADEPTA, SOPEXA and UBIFRANCE. French manufacturers have participated in major trade fairs conducted in India.

INDIA IN FRANCE

On the other hand, India's presence in France is far from being significant. India doesn't emerge in the list of top 10 investing countries in France. Indian exports of software services to France are still at a low level. Therefore, a huge potential market remains open for the Indian software industry. Tata Consultancy Services (TCS) has a partnership with a French company in France, WIPRO is opening its own representative office in Paris, Sankhya Infotech has a commercial office in Toulouse, Satyam Infoway is also looking for business opportunities in France and new Indian companies like Netkraft Private Ltd. or

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Technova Information Systems are gaining a preliminary foothold in the French market.

Also, the Indo French trade has remained modest in size from France's point of view and the agriculture sector is no exception. In 2002 France has exported only 70 million Euros worth of Agricultural Commodities & Processed Food to India. On the other hand, Indian exports to France during the same period touched 210 million Euros.

FRANCE APPAREL INDUSTRY – AN OVERVIEWFrench clothing is not only inherently chic, but it is also legendary in its design and rich history. From exquisitely crafted haute couture to Coco Chanel's little black dress, French clothing has been admired and loved by fashion connoisseurs since the reign of Louis XIV. As many fashion houses dissolve because of lack of public interest or economic woes, many French clothing companies have thrived even after the deaths of their legendary creators.

History

According to FashionEncyclopedia.com, the reign of French king Louis XIV created a shift in the creation of French apparel and luxury goods. In the mid-1600s to early 1700s, he ceased the import of fabrics and goods into France and created a powerful industry producing silk, ribbons and other fine textiles. As a result, France became a major exporter of textiles and luxury clothing to all of Europe. Notable years in French clothing history include 1910, when Coco Chanel opened her first shop on Rue Cambon, and 1947, when Christian Dior created the "New Look."

Significance

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Paris, Milan, Tokyo and London are considered premier cities for fashion innovation and design. Many famous French design houses, including Balmain, Lanvin, Chanel, Louis Vuitton, Christian Dior, Yves Saint Laurent, Mainbocher and Guy Laroche, created iconic clothing designs that are sold in vintage boutiques and upscale department stores worldwide. French tennis star Rene Lacoste created garments with an embroidered alligator, which was the first instance of a designer logo used in fashion.

Identification

In the 21st century, French clothing is prominently featured in magazines and designer fashion shows. In the mid-1600s, the French fashion press was created by Jean Donneau de Visé to advertise the styles of clothing worn by members of the royal court. Elle magazine, a legendary fashion bible for style arbiters, was founded in 1945. Paris holds two important fashion weeks in February and September to display clothing for fall/winter and spring/summer collections.

Types

There are three major types of French clothing sold worldwide: prêt-à-porter ("ready to wear"), French lingerie and haute couture. Yves Saint Laurent revolutionized the fashion industry in 1966 by designing clothing ready for mass distribution. Haute couture is a legal term that refers to hand-sewn designer clothing made by couturiers. With designs that range from $10,000 to $200,000 or more, fewer than 200 women worldwide wear couture. A couture garment can take months to make. Only garments made by clothiers designated by the Fédération française de la couture are considered couturiers.

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FASHION CAPITALA fashion capital is a location which is influential in fashion and in which fashion is important. A fashion capital would be the home of many top designers, modeling agencies, and the like. It is decided each year by the amount of business generated and influence through media in fashion. each year a list of cities based on rank is released stating the fashion capitals of the world.

Milan is considered the economic and true current media fashion capital of the world. As well as being the fashion capital of the world it is also the business and design capital of Italy.

Though not from the economic point of view, Paris is considered the symbolic fashion capital due to it long standing history as a center of art and fashion, yet in the Global Language Monitor, it was beaten by Milan and New York in the media.

Camelot was the fashion capital in the days of old.

The other main centers of fashion in the world are New York, London, Los Angeles, and Tokyo. In recent years, however, the importance of the fashion industry has grown in many other cities around the globe, such as Hong Kong, which are sometimes included in the list.

Other top fashion capitals include Sydney, Melbourne, Rio de Janeiro, Naples, Shanghai, and Dubai.

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FRENCH FASHION STYLE AS OF TODAYFrance is the greatest fashion hub of the world. The French are considered to be the most fashionable people in this world. After all their fashion statement is looked at with great esteem, especially in the world of elite. The France fashion Industry has virtually monopolized fashion for women. Theydeserveit is going to explain why. French Fashion Style has remained the trend-setter in the world. So the words 'fashion' and 'France' have almost become synonymous.

Paris is not only the capital of France, but it is virtually the fashion capital of the world. The city is the measuring scale for the vogue running worldwide. Paris is controlling the key to fashion world since the 16 th century. The city is also privileged with a large fabric industry which provides a strong base to this fashion industry. In the 40s, 50s and 60s of this century, a number of leaders emerged in the fashion-front and vied with each other to rule the fashion world. Starting with Dior, Balmain, Fath and Givenchy, Pierre Cardin, Guy Laroche to the most recent designer Yves Saint Laurent and Andre Courreges, all have made the world of Fashion rich with their contributions. The fashion of the 60s was predominantly dominated by Pierre Cardin and Yves Saint Laurent. There style was

mainly based on the classic style. In fact the 60s virtually put an end to the elaborate retro

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style and ushered in a light, street fashion. The experimental touch in fashion came into vogue. An air of change started invading the French Fashion Style.

In the hands of the designers like, Pierre Cardin and Courreges, space age designs flourished. Silver and black & white were mixed and matched to give a blend of ethnic look and present day fashion. Stripes and pop art are the signature marks of the French couture. The French designers mostly extract their inspiration from the expressionistic paintings and from nature.

FABINDIA’s 4P’s IN FRANCE

PRODUCT

Fabindia has a differentiating edge over others and it’s the handmade products that they are offering. It is basically providing a niche market. The products offered by Fabindia contains a heavy embroidary, crosio work and sequal works made by the artisans in villages. These is a very strong customer value leveraged by Fabindia, which is that of tradition and ethinicity of India which is carried by the poor artisans in the villages. Its basically for those people who has a liking for Indian handmade products. Through this the company is carring India’s culture to France.

Fabindia provide to a niche market that is only those people who has a liking for ethinic wear. Here, it is providing a indian pattern with western outlook to french people.

The products that Fabindia is going to offer in France market will contain high level of embriodery work, crochio work and also high level of sequels. The manufacturing of the apparels will be done by the artisains in villages but the designs will be made by the Indian designers like Manish Malhotra, Satya Paul, Ritu Kumar, etc.

As France is already into ethinicity therefore Fabindia targeted it for its expansion. But to meet to the needs of the french population is going to be a challenge for Fabindia and therefore it need to work hard on its designs as french people don’t compromise with the designs. They are ready to pay a high amount but never compromise on their buying patterns. Also french people are more receptive to fashion which is more of ehtnic in nature.

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As France is known as a fashion capital, therefore its important for Fabindia to offer its products in such a way that French people will like it. At the same time Fabindia is also going to give customised service to its customers. The ready apparels will be kept in the outlets but at the same time time it will also go for customisation. The customer can get adesing and then company will stich it accordingly. Also the various designs will be kept at the outlets itself and the choice will be given to the customer to select any design and the same will be stiched and given back in 20 to 25 days. But this service will be given only for the premier kind of apparels.

The following is the range of products that the company is going to offer to France. From the following products – garments, home linen and home furnishing are the important products and rest are the complementary products.

GARMENTS

Fabindia garments include indian and western wear for men, women, teenagers, childrens and infants.

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For more than 20 years, Fabindia has been providing men's casual clothing in comfortable, classic styles. Our trademark is our beautiful, natural fiber fabrics which are entirely handwoven and designed with exclusive woodblock prints.

Fabindia's collection of men's apparel is universal in it's appeal. Select from our range of best selling kurtas and short kurtis to classic nehru jackets and button down shirts.

Fabindia's exclusive collection of western and Indian clothing features women's casual clothing with a global style, highlighting Indian fashion influences-like our essentially Fabindia mix and match sets of salwar kameez and kurtis.

Our entire line of women's apparel is handmade from natural fibers, incorporating classic and contemporary design.

HOME LINEN

A large range of bed, bath, table and kitchen linery

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Fabindia's exclusive home furnishings collection of natural fiber bedding includes handmade bedspreads, quilts and decorative pillows.

Double functioning as accents or throws, creatively use the silk and cotton fabrics anywhere in your home.

HOME FURNISHING

Fabindia range of home furnishing comprises upholstery, curtain fabric and readymade curtain.

Fabindia has crafted a world of possibilities with our beautiful handwoven and hand block print curtains.  Now you can give any room an instant makeover with affordable, designer-quality, ready-to-hang curtains without the extravagant custom-made prices. Our exclusive Fabindia designed curtain panels in breezy natural fibers softly filter the sunlight, creating a relaxed and stylish mood. 

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Explore Fabindia's world of affordable, handmade home furnishings, including tablecloths, napkins, placemats and more.

Whether you choose classic or contemporary table linens as accents, our linens help you personalize your home decor.

Your source for original, handcrafted gifts and accessories exclusively at Fabindia. For a friend, family member, client or staff, let the timeless act of gift giving be easy and fun. Inspired by contemporary design and traditional crafts, our innovative collection of gifts expresses your appreciation for any event or circumstance.

ACCESSORIES

Duppattas in a variety of fabrics, colours, weaves and prints, scarves and stoles in wool, silk and cotton neck ties, swals in varied textures.

HOME PRODUCTS

The Home Products range carries furniture, lighting, stationery, tableware, cane baskets and a selection of handcrafted utility items. Indoor and garden furniture, home products in cans , bamboo and basketry, table ware and ceramics. (introducted in October 2000 in India)

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ORGANIC FOOD PRODUCTS

Partnering with rural farmers, Fabindia brings a range of tested and certified organic food to its customers. Fabindia Organics carries several types of cereals, grains, pulses, spices, sugar, tea, coffee, honey, fruit preserves and herbs. (introduced in July 2004 in India)

FLOOR COVERING

Fabindia carry a range of durries in cotton, wool, jute, hemp and grass. Available in a variety of sizes and weaves.

PERSONAL CARE PRODUCTS

Fabindia offers a range of authentic personal care products includes soaps, shampoos, hair oils, pure oils, moisturisers, body scrubs, face packs, hair conditioners and skin care products. (introducted in March 2006 in India)

PRICE

Fabindia is providing a wide range of products from men’s to women apparels, home linens, home furnishings and a lot of others. It wants to provide its customer a premier product at a premium price. People in France don’t care about spending on their apparels but but they want it to be different. Obviously all the products have different price range. But towards the end it will provide its products from the price starts from 8,000 euros to

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10,000 euros. Depending on the designs and the work done on the apparels the price will be fixed. Also they are being designed by the Indian well known professional designers therefore the price is ranged so high.

As Paris is considered to be the fashion icon therefore Fabindia will position its brand accordingly and price as per the market levels.

PLACE

Fabindia will set up its business in France through franchises. The franchise sector as a whole continues to expand, while the apparel franchise market remains relatively stable.

In 1998, the French apparel franchise market was composed of 2,915 franchises representing USD 1,929 million. In 1999, 317 new franchises are expected to open in France (women's wear: 123; children's wear: 72; men's wear: 58; lingerie: 40; jeanswear: 13; sportswear: 11). Although the number of foreign franchises is

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low, they are growing at a steady rate (about 5 percent per year), and Italy is the leading country with the most important number of franchises in France followed by the United States, Spain, and Germany. French consumers are fashion conscious. Therefore, there are good opportunities for Fabindia to successfully penetrate the French market.

There are no barriers for foreign-owned franchised companies in France. French importers pay VAT (Valued added Tax) at the rate of 20.6 percent on the CIF (Cost, Insurance, Freight) value on imported goods. They also pay customs duties of 14 percent when clearing goods through customs. Franchising agreements are subject to the laws governing commercial contracts and those governing sales or trademark licensing agreements in particular. Business practices are regulated by a Code of Deontology. This code was drawn up by the French Franchise Trade Association as the code of conduct for franchisors. It defines franchising, a franchisor, franchisee, network, and duties and obligations towards the consumer.

The Doublin law of December 31, 1989 and its application decree of April 4, 1991 protect the interests of commercial networks in general, as well as the interests of the franchisor, his/her network, and potential franchisees. Decree no. 89-1003 requires that franchisors disclose operational information to prospective partners 20 days before signing a business contract in order to provide them with "full disclosure" before committing to contract.

A franchise contract is drafted for an average duration of 3 to 5 years; 50 percent of all the contracts are renewed automatically, with the balance renegotiated prior to renewal. Usually, the franchisee pays royalties fixed by the franchisors.

However, Fabindia should take into account the differences between the Indian and French markets, especially when establishing the master franchisee fee. Fabindia should understand that the price should not necessarily be based on the Indian market. They should allow a margin of flexibility in their price, which would allow them to better adapt to specific French market conditions, i.e.: difference in real estate prices, and start-up costs in the retail business).

In general, 50 percent of an outlet's initial investment is provided on a mid-to-long term loan basis; 30 percent is provided by personal contribution, supplemented by a short-term loan for the remaining 20 percent. When taking over a retail location, companies are often subject to a substantial start-up fee, or "fond de commerce", which is negotiable with the former occupant.

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This fee varies with the size and location of the establishment. The new leaseholder pays for the right to access the previous occupant's clients.

French banking and financial activities have undergone changes during the past decade. Former restrictions, such as credit ceilings or foreign exchange controls, have been abolished. These changes have resulted in increasing foreign investors'interest in the French market, as well as that of financial institutions, which seek an operational presence.

France is in a good position to provide full banking services to both local and international customers. French banks will generally lend 70 percent of the acquisition fee. If the franchise is well known, the loan may reach 100 percent. However, the franchisee needs to present guarantees. Banks provide a full range of basic services, documentary credits, standby letters of credit, letters of guarantee, bills of collection, acceptance financing, export/import pre-financing, as well as recourse and non-recourse financing.

Fabindia will have its major number of franchises in Paris and rest will be equally scatterd in rest of the parts of France.

Also online selling is high in France therefore Fabindia will sell its product through net.

PROMOTIONS

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. This is the strategy for India. But it cannot follow the same strategy in France as in france it is at the nasent stage. And already there are big brands well settled over there. Therefore, it needs to go for a heavy advertisements.

French people are more attracted towards advertisements of television. Therefore it need to go for television advertisements. Also advertisments through magazines especially fashion magazines will be the next option for advertisemnet.

As Fabindia is also going for online selling therefore it will also go for advertisments on net.

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4 C’s OF FABINDIA

CUSTOMER COST

Premium cost for premium customers and excellent quality.

COMMUNICATION

Rely on heavy advertisments through television, radio, magazines and internet.

CUSTOMER VALUE

Products are handmade and traditional in look.

CONVENIENCE

Outlets spreaded allover the country at major locations.

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SEGMENTATION, TARGETING AND POSITIONING OF FABINDIA IN FRANCE

SEGMENTATION AGE – 15 years to 40 years INCOME – 50,000 euros to 80,000 euros SEX – Male and Female both

TARGETING Fabindia basically targets a unique kind of customers. It targets to a niche segment –

those people who has a special liking for Indian style of dressing and those who are spend thrift.

It is targeting towards people who shops for some special ocassions like parties, marragies, etc.

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Fabindia believes in retaining its customers and making loyal customers by taking regular feebback.

POSITIONING

Fabindia positions itself as the -

A UNIQUE GARMENT ETHINIC WEAR INDIANESS Something that desi… Richness of Indian handicrafts and artecrafts Unique Indian culture and tradition

SWOT ANALYSIS

STRENGTHS

Fabindia has gradually attained a strong foothold in India. It has become the niche player of choice for the premier customers when it comes to buying something with “Indian flavour” added. The constant product innovations and agility in identifying associated product lines has been the key. Be it garments with distinvtive folk patterns to furniture with carvings and designs reflective of rich Indian heritage, the products have an intrinsic appeal to customers.

Few of the other strengths of Fabindia are as follows -

Outlets spreaded out in major parts of the country therefore the reach becomes easier

Complementary products manufactured with the main course Provides customisation service

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Provides a unique product to the French population – blend of indian and western outfit

In-house manufacturing Online selling

WEAKNESS

Products are handmade and takes a lot of time also getting those products from india to France takes an additional time so in the mean while there are chances of lossing customers.

Targets only to one segment of the society i.e. SEC A and who has a liking for Indian kinds of dresses

OPPORTUNITY

France's strategic location at the heart of Western Europe is served by a highly developed transport and communication network. The Eurostar high-speed train has reinforced the already strong air and sea connections between the two countries. The centers of London and Paris are only two hours fifteen minutes apart

France is home to world's leading companies in many innovative industries and is the third largest recipient of foreign direct investment. The French economy benefits from a highly productive labor force. Structural reforms are being undertaken to help secure investment. This should offer new opportunities for Indian companies in procurement and sub-supply. Numerous "pôles d'excellence" (industrial clusters) testify to the attractiveness of France as a business location.

All this factors are favorable for Fabindia and its further expansion and will also help to achieve success in France

THREATS

There are already well established apparel brands in France with which Fabindia needs to face competition. As Fabindia is in its nasent stage therefore it needs to work a lot to build a brand name in the minds of the people. It need to create an image like –TOP OF THE MIND

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RECALL then only it will be able to achieve success in France. For this it need to invest a lot of amount on advertisement.

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THANK YOU

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