Fabindia: Marketing Indian Craft Traditions

            


Details

Case Code : CLMM078
Publication date : 2009
Subject : Marketing Management
Industry : -
Length : 03 Pages
Price : Rs. 100

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Key words:

sustainable business model, marketing, advertising. positioning. word of mouth, publicity. niche market, Pressure selling, Indian handloom, textile, Fabindia, Ford Foundation

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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

In May 2008, Fabindia Overseas Pvt. Ltd. announced its plans to make 20,000 weavers from poor and backward communities its shareholders. They would be holding a stake of 51 percent in around 35 subsidiary companies floated by Fabindia in different states. Analysts felt that over the years, Fabindia had built a sustainable business model by bringing several rural artisans and weavers together and providing them with a retail platform to showcase their products across the country and also around the world largely on the strength of its marketing.

Introduction

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."


Fabindia was founded by John Bissell, who had worked as a consultant for Ford Foundation , . 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...

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