FABMART

KEY INGREDIENTS OF THE

BUSINESS MODEL
REVENUE MODEL: - Through commission
received on its sales.
MARKET OPPORTUNITY:- Fabmart targets
inertia zone(people who browse but don’t
shop)
COMPETITIVE ENVIRONMENT:- Indiatimes.com,
sifymall.com, rediff.com
COMPETITIVE ADVANTAGE:-7 day return scheme and
timely delivery systems through blue dart. It had the first
mover advantage
Q1:Discuss Value Proposition of Fabmart.com
Fabmart was a multi-store virtual super market.
One place to shop for various kinds of products.
Each product category had a virtual store.
It was not a single vendor and as comparing the prices
became possible for the customers.
It had a tie-up with Blue Dart which ensured timely
delivery of goods.
In case of music, shopping cart and wish list facilities
where provided unlike the other sites.

(contd)
The customers can listen to the music before placing the
order for the same.
The customers could track their orders online.
Payments could be made through Citi Bank which satisfied
the customers’ security concerns.
7 day return scheme- with or without reasons.


Q2:Evaluate Fabmarts SWOT analysis
STRENGTHS(internal factors):
üEarly Mover advantage as an e-retailer-Fabmart caught the
imagination of both the investors and the online
consumer.
üIn-house warehousing and timely delivery systems
üSimple ordering process with order tracking system
üTie-up with Citi Bank- satisfying security concerns- led to
good positioning.
üExperienced top management
üWide selection of products with a good back end system
ü
ü
WEAKNESSES:
üEntered the Indian market when the consumers were not
used to transacting online.
üReluctance to buy the product online as the consumers
could not get the feel of it.
üThe name was changed too often- from Fabmart to Fabmall
to Indiaplaza.com
üFocused on making the offline buyers transact online.
üRevenue was based only on the margins.
ü
ü
ü
OPPORTUNITIES:-
üTie –up with producers of different products
which are not available so that customers can
be attracted and more number for products
can be offered.
üTry to get revenue from other sources based on
their plus points.
üThe number of internet users and buyers is
increasing so it can provide wide variety of
products to them and increase sales.
THREATS(external factors):
üFabmarts strong competitors provide similar services. they
were:-
- Indiatimes.com - which is part of the cash-rich Times of

India Group
- Satyam Infoways - Sifymall.com

-Rediff.com- a leader among India-focused Web portals.

üShopping malls which are more convenient for the

consumers.
üOther sites which provide free downloads of songs, etc.
ü



 Q3: Identify the key areas where the online retailers
have to focus on. Discuss where does Fabmart stands on
those areas.
Establish trust factor
vMaintaining JIT (Just-In-Time) inventory management
technique
vBeware to enter this domain(e-retailing) until & unless one
has product lines of 200-300 products from reputed
brands to offer- complementary merchandise and services
vStrong brand name and image
vCustomer information
vDistribution system to efficiently ship merchandise to
homes and receive return.
(contd)
Identifying three broad dimensions of Web site design that
contribute to consumers' perceptions : visual design,
content design and social-cue design.

Fabmart stands…..
ü Fabmall.com has quite a large catalogue of over 3.5 million
products available online
ü Claimed to be the only e-commerce company in India with in-
house warehousing and delivery systems (in 2007)
ü Also claimed to be the only one providing end-to-end control
over the entire ecosystem of e-commerce including web
technologies, merchandising, logistics and customer
service( in 2007).
 Loyalty programs for leading brands in the FMCG, hospitality,
IT and airline industries
New initiatives -special contest that challenges customers to
find a book or a mobile phone at a price lower than available
on Indiaplaza.in.(2007)


Q4:Research on internet and update about the
company. Comment on the same
In 2000, it launched new schemes and a rewards
programme to retain and expand its customer base.
üonline customer support services to lead first-time
visitors
ü`Fabmoney'
ücorporate and personal gift coupons
Fabmart had posted a revenue of Rs 3.5 crore during
the first full year of operation in 2000-01


(contd)

`Fabmoney' for those without credit cards of

denominations Rs.100 and Rs.50 .
`Fabpoints' in six major cities in cyber cafes to
provide the `Fabmoney' service on a profit-
sharing basis.

In 2003,
Fabmart India Private Limited -substituted its investors
ChrysCap and Reliance with a new one(refused to bet
more money on the new plans of Fabmart to go
physical )
Closed operations of Fabmart and transferred assets
and infrastructure into a new company, Fabmall.(the
new investors wanted a brand new legal entity.
Hence”Fabmall” as a name was chosen to ensure
brand continuity )
Planed to keep online presence only as strategic
operation and focus more on physical stores and
corporate services.

 (contd)
In 2004, it acquired Trinetra a retail grocery chain.
In 2006,

Fabmall.com launched manoramaemart.com(to make shopping

an exciting experience and accessible from across the globe in
association with Malayala Manorama)
§ In Jan 2007, it announced that it is acquiring US-based
Indiaplaza.com, the leading e-commerce destination for
Indians in the U.S.
§ The combined e-commerce business operated/operates under the
global brand Indiaplaza.
§ Indiaplaza is now the world's largest India-centric e-commerce
company with over one million online transacting customers
globally.
§
Comments:
Fabmart wanted more customers to buy online
instead of buying from shops.
At the same time, it also kept adding newer
services and products which was beneficial.
Fabmart kept changing its name from time to
time which created confusion among the
customers.

THANK YOU!