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A Case Study : Beyond Profits-Fabindia - a New System of Inclusive Capitalism
Fabindia is India's largest private platform for products made from traditional techniques, skills and hand-based processes. Fabindia's products are natural, craft based, contemporary, and affordable. This retail outlet promotes unique model of inclusive capitalism that procures through COC (community owned companies). Fabindia's model acts as the value adding intermediaries i.e. between the company and rural producers in India. It has established links with over 80,000 craft based rural products for modern urban markets. Thereby the company has been contributing to the process of creating a base for skilled and sustainable rural employment as well as preserving India's traditional handicrafts. These Rural Craft Companies connected to Fabindia are owned by the local communities of artisans; a minimum 26% shareholdings of these companies are that of craft persons. Fabindia has established its own social standard in India and abroad. Today Fabindia is a major player in the retail handloom sector in India due to the fact that the company has always believed in "good business practices and never compromised on best quality". Fabindia believes that a delighted customer is their best Brand ambassador. Their USP in marketing lies in quality of fabric. The company heavily relies on the word of mouth marketing. They say 83% of customers go satisfied and 59% go highly satisfied as told by Bissel to Economic Times. This revolutionary organization is said to be the next big thing in societal betterment through its commitment to Corporate Social Responsibility, Value based Marketing and Exemplanery HR Practices.
Community, COC, Retail, Inclusive Capitalism.
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