Fabindia bets big on experience centres for growth
Ethnic lifestyle retailer, Fabindia, is betting big on experience centres for its next phase of growth and plans to invest heavily on expanding these centres across India over the next two years.
Fabindia plans to invest another Rs 15 crore ($2.1 million) to open five more experience centres before the end of this fiscal year.
In March 2017, the ethnic fashion retailer had launched its first experience centre and since then has been rapidly expanding. It currently has 25 experience centres in India.
Fabindia claimed that it has seen a 25 to 30 percent jump in sales from these experience centres. It had reported a net profit of Rs 116 crore on revenue of Rs 1,148 crore in the 2019 financial year. It is targeting sales of Rs 1,500 crore in the financial year 2020-21.
"We want to add a new line of customers and offer them an experiential retail experience. We have a strong pipeline now as the spaces have been leased and are getting prepared. In 2021-2022, Fabindia plans to open 20 more experience centres in India,” Ajay Kapoor, president retail at Fabindia told Business Today.
Fabindia currently has 322 stores across 114 cities in India and 14 international stores, out of which 25 are experience stores.
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