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Case Study Of Shoppers Stop And Fabindia

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Executive Summary
In this paper, we have analyzed the business models of a top performing multi-brand outlet (MBO), Shoppers Stop with that of niche apparel retail brand, Fabindia. For the purpose of this study, we have limited the scope to apparels for both the players. We have done primary research on both Shoppers Stop and Fabindia through interviewing store managers. We are thankful to Prof. J. Ramachandran, IIMB for providing inputs on evolution of Fabindia business model. This helped compare the two extremes of apparel retailers where Fabindia is creating value by a community-oriented model, and working with artisans at bottom-of-pyramid while Shoppers Stop creates value through distribution and branding. Through its innovative business …show more content…

There is a 1-1 correspondence between the risk corresponding to the brand and the margins that Shoppers Stop makes on the brands. The higher risk private label brands provide a margin as high as 45-50% while the brands covered under the concessionaire model provide margins, as low as 18-20%. The supply chain of Shoppers Stop can be summarized as: Shoppers Stophas 4 distribution centres in 4 zones across India. It leverages the fast connectivity and transport availabilithy in metros for its choice of distribution centres.
Zones City Zone City
North Zone Delhi East Zone Kolkata
South Zone Bengaluru West Zone

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