Group 1: 32, 34, 42 (L), 45, 47 & 55

T.Y.B.B.A

Locational disadvantage with regards to Fabindia

Location does play a important role to decide a businesses fate. But its not
always to be. You can see that in the case of Fabindia (GOA)

In Goa, Fabindia is located in the interiors and not in the city or not on the busy
roads but surprisingly it’s not empty. There are many reasons for this kind of
location. They wanted a stand alone store with ample parking space with lots of
space inside the store. The place suited the requirement. Also the rentals in the
main city area are too high for the kind of huge area which they were looking
out for.

Location outside the city allows them to have cheaper land and also allows them
to have more space to have huge display areas and make the place very
attractive. Fabindia products get sold due to their quality.

The customers, who shop in these places, are mainly upper middle-class
educated people and tourists, who have slightly different taste and for whom
location does not matter. These customers include all age groups. Fabindia does
have local customers, who are urban middle class, the rural population cannot
afford it, so the location does not matter. People who believe in these products,
just locate the Fabindia store and shop.

They want customers to come to their store especially for shopping. This
popular store has a fixed customer base and these customers influence their
family & friends.

If u see in metros Fab India is located right on the busy streets its because
metros have urban middle class clientele who buy their products as their style is
for urban India and Goan market has not got upto that trend till now.