Thursday, January 29, 2015

Fabindia: Branding India’s Artisanal Craft for Mass Retail

©2015 INSEAD Case Study
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Fabindia, India’s iconic garments and home furnishings company, had come a long way from its humble beginnings as an export shop in 1960, selling handloom fabrics to overseas customers. In 1976, it had started domestic operations in India and over the next 38 years had become synonymous with quality handmade products procured from artisans all over India, with a social conscience. The business combined the twin objectives of making a profit and providing a sustainable livelihood for rural artisans. However, the winds of change were blowing. The next generation of consumers, part of a different economic environment and world order, were less tied to the Fabindia ethos and had widened their consumption habits. Given these changes, was it time to evolve? Should Fabindia broaden its positioning? If it remained niche, could it continue the phenomenal growth it had experienced? If Fabindia chose to broaden its positioning, what should that positioning be?