FabMart.com, a Madanapalle Retail Pvt. Ltd. venture, today introduced, for the first time in the country, in Andhra Pradesh, a new retail model aimed at addressing the demand-supply need of retail that exists in smaller towns in India. Appropriately called ‘RU-BAN’ – bridging the retail gap between rural and urban India- FabMart.com will integrate the business of retail with the social fabric of small towns empowering the rural consumer with a choice of products that are otherwise available only in metros and large Indian cities.
Consumers in Indian towns have been increasingly demanding a similar shopping experience (in terms of brands, product range, special offers) to those of their counterparts in the cities. Similarly some of the big brands have been looking for an entry into smaller towns. The RU-BAN business model brings these consumers and brands together on a single technology-enabled platform, placing the smaller retailer at the center of FabMart.com’s business strategy.
“We intend to place the power of retail back in the hands of the smaller retailer,” said Alphonse Reddy, CEO, FabMart.com. “FabMart.com as an early adopter of T-commerce, intends to bring the power back to the small retailer, and create a significant market opportunity for brands that are striving to make inroads into the hinterlands of India - the retailer uses a tablet, and the consumer gets a mall,” he added while handing over the franchise kits to selected retailers from Chittoor, Kurnool, Kadapa and Anantapur districts.
“I am very excited to be appointed as the FabMart.com franchisee. This will enable me to deal in hundreds of brands across multiple categories without making a huge investment,” said Sudheer Karwa, Prakash Showroom from Guntakal.
A recently published study by management consultancy firm AT Kearney reveals that modern retail constitutes merely 7% of the $435-billion Indian retail market, thus indicating the potential and importance of the small retailer. Further, a published Nielsen report cited that ‘Middle India’ is home to 100 million Indians and constitutes up to 20% of the country’s fast-moving consumer goods market.
The FMCG market in Middle India will grow from Rs.28,700 crore in value currently to Rs.4 lakh crore by 2026. The numbers make it an attractive market for consumer product companies as well, beyond FMCG.
India has the highest density of mom-and-pop shops in the world, with 11 shops per 1000 people, and these small stores have the potential to drive India’s economy outside of the metros.
FabMart.com aims to put the power back in the hands of the small local retailer, by empowering them with technology and training on customer focus and dealing in branded products. The retailers book the orders from their customers using the tablet device. The customer returns in a few days to collect the product, thereby eliminating concerns around security of online transactions or the use of credit cards, creating a win-win situation for FabMart.com, the retailer, the brand owner and the consumer.
FabMart.com is already present in more than 20 towns in Andhra Pradesh and is embarking upon an aggressive drive to appoint more than 500 franchisees across the state this year. This number is expected to increase to 2,500 by 2013 and further, to 12,000 franchisees by end of 2014. Following the expansion in Andhra Pradesh, FabMart.com will enter Karnataka, Tamil Nadu and eventually across India.
Currently, FabMart.com invites interested franchisees to visit the website www.FabMart.com and or call 080 3008 8622 to register. Following evaluation and selection the franchisees will be sufficiently trained in providing consistent customer experience, sales techniques, and basic store hygiene.