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FabMart.com launches new retail model for rural markets

FabMart.com introduced in Andhra Pradesh, a new retail model aimed at addressing the demand-supply need of retail.

, ET Bureau|
Last Updated: Sep 11, 2012, 08.23 PM IST
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HYDERABAD: FabMart.com, a part of Madanapalle Retail Pvt. Ltd. Venture introduced in Andhra Pradesh, a new retail model aimed at addressing the demand-supply need of retail that exists in smaller towns in India.

Christened 'RU-BAN' FabMart.com wants to integrate their retail business with the social fabric of small towns to empower the rural consumer. Rural customers will be offered a choice of products that are otherwise available only in metros and large Indian cities.

"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.

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.

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.
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