Fabindia sales grew seven per cent in fiscal ’19. Net profit nearly doubled after the retailer of ethnic products focused on premium merchandise across categories — apparel, food and personal-care items and decorative furniture.
Fabindia is popular for selling ethnic products. A year ago, sales growth had fallen to its lowest in over a decade. Business for the company that sources a bulk of its products from rural markets was hit after the note ban, as it saw restricted supplies from craftsmen for the next several months. Since then it has seen good overall recovery with many new initiatives yielding results. It is rapidly scaling its experience centers and these have helped increase store productivity and profitability. The push behind fusion and western wear assortments and more on-trend styles was well received. Optimisation of cost structures after GST also helped bring down costs.
Fabindia, founded in 1960, started as an exporter of home furnishings. Nearly two years ago, the brand launched four strategic business units: home and lifestyle, personal care, FabCafe and e-commerce. Fabindia is India’s largest private platform for products that are made from traditional techniques, skills and hand-based processes. It believes in giving employment to craftsmen where they can do their work in their own environment.