Ever heard of the fashion brand that had everything going for it and then, sort of, blew it?
I am talking of Fabindia, the ethnic wear label that was once a preferred brand for people looking to wear ethnic chic. The brand, launched in 1960, was created with a laudable purpose – to help uplift the artisans who worked for a pittance in India’s traditional handicrafts and handlooms industries.
Till some years ago, Fabindia was growing by leaps and bounds. It had an omni-channel presence, a franchise network with stores in multiple locations in most cities and towns and it was the sought-after brand for the young and the not-so-young who wanted to be seen in ethnic clothes. In fact, it was the first Indian apparel brand to cross Rs 1,000 crore in sales in 2016.
Today, Fabindia does not have the pride of place it once had. Its planned Rs 4,000 crore IPO was scrapped last year. FY23 saw a loss of Rs 27 crore on a total revenue of Rs 1,600 crore. Compare this with FY19 when it saw a profit of Rs 86 crore from a total revenue of Rs 1,400 crore.
What went wrong? The brand lost sight of its customer and the competition.
From being a brand for ethnic-conscious youngsters, it became a brand for ethnic-conscious parents of millennials and Gen-Z youngsters. The young were flocking to H&M and Zara for western clothes or to Global Desi or Cotton World for their ethnic wear and Fabindia became the brand that their parents wore. The brand did not keep pace with changing consumer preferences.
When it ruled the markets, Fabindia was the only ethnic wear brand. As time went by, many more brands joined in – from Manyavar and Biba to Ritu Kumar and Global Desi. These brands had designs that were more suited to the younger consumers, making them preferred ethnic wear labels.
Added to all this were controversies that dogged the brand – like the Diwali ad they had to later pull out.
What Fabindia needs is to relook and update its product range. With a business that spans garments to organic toiletries and cafes, it needs to prioritize what its brand stands for and focus on it. And it needs to invest in some aggressive marketing to revamp its brand image.
Hopefully, Fabindia will bounce back and continue to benefit the hundreds of artisans it supports for its products.
#marketingstrategy
Founder of The Science of Beauty STEM Program|Pres. Biden Lifetime Achievement Award Honoree| 2x Author|On Air Fashion Correspondent| Public Speaker| Prison Reform Advocate| Fashion Stylist
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