Online Fast fashion brand, FabAlley continues its offline expansion with the opening of its second EBO in Rajouri Garden, New Delhi. Earlier in the year, FabAlley had identified its ethnic-fusion range, Indya, for its offline expansion. This range currently contributes to over 25 per cent of FabAlley’s overall revenue, with plans of growing to over 35 per cent by the end of this financial year.
FabAlley’s Rajouri Garden store is spread over 660 sq. ft. allowing existing and new customers to get a feel of Indya’s luxe fabrics, fits and silhouettes. The Indya store will be housing a contemporary range of luxe skirts, peplum tops, crop tops, tunics, and palazzos, which are a perfect blend of western and ethnic.
On the occasion of the launch, Tanvi Malik, Co-CEO of FabAlley said, “Young millennial consumers are no longer segregating Western and Ethnic wear strictly. There is a burgeoning demand for contemporary Indian wear, which blurs the East-West lines. Indian-wear currently occupies 74 per cent market share of the apparel retail market in the country and provides a great growth opportunity for us. FabAlley provides a differentiated offering within this segment owing to our edgy approach to ethnic wear. We provide options for young women who prefer wearing something that merges a traditional aesthetic with a western appeal”.
FabAlley first partnered with Future Group’s Central Mall in 2016 for their offline expansion, and since then has grown to over 55 shop-in-shops across the country, apart from 2 exclusive brand outlets and a strong online presence.
“Currently ethnic wear industry in estimated at Rs 70,000 crore, and the segment is expected to grow at a CAGR of 9 per cent to reach Rs 1,25,000 crore in 2019. We are looking to hone in on this opportunity and grow our Indya brand offline in a big way, with about 12-15 stores planned in the next six months. Both the Rajouri Garden and the Phoenix Market City Bangalore stores cater to an affluent, discerning clientele, and we plan to keep expanding into premium high street and mall locations within the country in the next few months as well”, said Shivani Poddar, Co-founder, FabAlley.
She told Indiaretailing on the sidelines of IRF 2017, “After being fairly strong from an online point of view, we still felt that there a lot of customers who wanted to kind of touch and then buy the product as oppose to buying online. We felt if we have enough touch and feel points for customers to get familiar with the brand, it is easier for them to transition from online to offline. After reaching a certain stage, we felt the next level of growth will come from ensuring enough outlets offline, so that customers can shop on all channels.”
READ MORE: FabAlley to Open 10 Exclusive Stores by 2018
The brand is looking to set-up separate shop-in-shops for Curve and FabAlley. However, exclusive outlets for Curve is not on the cards currently.
As far as an international presence is concerned, the brand is present in Dubai, Mauritius and Sri Lanka.
According to Poddar, “Going forward, we are going to look at Middle-East in a big way. Right now we have distribution rights in Dubai and we have presence on some e-commerce portals in the Middle-East. Now, we are looking towards expanding in the Middle East as there are not many brands that cater to this market there and it is a pretty big market, people have money and consumerism is high. We are looking towards the Middle-East in a large way.”
Founded in 2012, FabAlley has so far raised US $2.5 million in two rounds of funding and is looking forward to a third round of funding soon.
“We are not looking to raise the money in the next six months. Currently we are well-funded and focused on expansion. Next year we will start figuring out our next potential round of funding,” she said.
Last year, the brand garnered 13-14 percent of its revenue from offline and this year it is expecting offline to contribute 18-19 percent.
FabAlley’s target for early next year is to touch the Rs 100 crore mark and then the target for next three years will be to become a Rs 500 crore brand.
FabAlley saw a 40 per cent growth in revenue in FY17 and with its aggressive Omnichannel expansion plans, and is on-track to achieve a 100 per cent YoY revenue growth this year.