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Fabindia has registered massive losses and it has only itself to blame for it

Tanya Trivedi by Tanya Trivedi
14 December 2021
in Trending
Fabindia, losses, brand
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There exist repercussions to every action, and one has to be prepared for them. The quote perfectly fits in the current situation of Fabindia. The clothing brand reportedly witnessed a massive loss in its revenue and if anyone is to be blamed for the losses of Fabindia, it is non-other than the brand itself.

Fabindia’s declining sale:

According to the reports of Times of India, Fabindia registered huge losses as the brand’s sales dropped by a third during FY21. Fabindia’s revenue fell 30% to Rs 1,059 crore during March 2021 with a net loss of Rs 116 crore. Interestingly, this is the first time in over two decades that the 60-year-old clothing brand, which sourced mostly from rural areas, witnessed a loss and a decline in sales.

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The whole apparel and lifestyle segment including Shoppers Stop, Tata-owned Trent, Aditya Birla Fashion among others have seen their revenues shrink and losses widen during the pandemic year. Fabindia’s losses, however, can be attributed to its overpriced collections, bad quality and never-ending controversies.

Fabindia and the controversies:

Fabindia shares a never-ending relation with controversies. Earlier in 2018, The Khadi and Village Industries Commission (KVIC) had issued a legal notice to Fabindia and demanded Rs 525 crore for “illegally” using its trademark “charkha” and selling clothes with the ‘khadi’ tag.

The KVIC, as per the legal notice, had also threatened legal proceedings against Fabindia Overseas Pvt. Ltd. if it continued to display a similar trademark.

In another instance, four members of Fabindia staff were charge-sheeted in connection with a 2015 case of snooping. The four members were arrested in 2015 over the allegations of the then Human Resource Development Minister Smriti Irani. She had reportedly alleged that a hidden camera was installed to spy on customers in the trial room of the Fabindia store in the tony Candolim beach village, 20 km from Panaji.

Read more: Fabindia’s ‘Jashn-e-Riwaz’ plan for Deepawali backfires gloriously

In the most recent controversy, the clothing brand was boycotted by the Hindu customer base which holds around 79% of the population in India. The brand had shamelessly started its Diwali campaign titled, ‘Jashn-e-Riwaaz’, a euphemism for Diwali. In the aftermath of attempts to abrahamise the Hindu festival, the clothing brand faced extreme backlash from netizens.

Poor Quality and Overpriced Fabindia:

It is not just the controversial history but other factors which are responsible for the losses the brand is witnessing this year. The consumer base of Fabindia has jumped ship to other brands serving better quality ethnic apparel and that too, at a lesser price. It is a no hidden fact that Fabindia is an overpriced brand selling clothing of average quality.

Thus, it is obvious for the customers to look for better alternatives.

Given its quality parameters, pricing issues and controversy, it can be asserted that if someone needs to be held accountable for the decline in the sales of the brand, it is no one else but Fabindia itself.

Tags: ControversiesFabindiaOverpriced BrandPoor QualityRevenue Losses
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Comments 2

  1. Uday says:
    4 years ago

    Fabindia facing massive losses is just not enough anybody messes up with age old customs, practices and sentiments of the population must perish and should become a permanent lesson to other brands.

    Reply
  2. Aditi says:
    3 years ago

    We need to continue making sure not to buy from this brand. In addition to fabIndia, we should also boycott
    – Tanishq (showing how gracious Muslims are in allowing Hindu bride to celebrate her festival) and
    – Manyavar (showing how kanyadaan is so regressive)

    I have yet to see any ad remotely questioning Christian or Muslim practices….

    Reply

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