CHIKANKARI CAMPAIGN IMPACT BRAND AND MARKETING

Important Notations Analysis has been done for comparable periods, current year over last year For sake of integrity of analysis, data has been looked at only for LFL stores and not on the total store base which has increased since the period of study pertaining to last year Analysis has been done for a one month period, starting with the launch of the ATL campaign Campaign was launched on 24th January 2018 across the entire country except North, which was launched on 2nd February 2018

Chikankari Campaign Summary Mainline Press 48 markets, accounting for 82% business revenue 3 releases, 206 insertions, in all marquee publications across states Reach-frequency of 41@1+ across DEL, MUM, BLR, KOL; 33@1+ for rest of India Campaign period: 24 days starting 24th January 2018 Investment: Rs. 242 lakhs Out-of-Home 36 tier-2 markets 85 site installations Campaign period: ~21 days starting 1st Feb 2018 Investment: Rs.44 lakhs

Footfalls and Net Sales All INDIA Feb Wk 1 (Jan 29th - Feb 4th) Feb Wk 2 (Feb 5th - 11th) Feb Wk 3 (Feb 12th - 18th) Feb Wk 4 (Feb 19th - 25th) OVERALL 2018 2017 Var% Footfalls 81436 88665 -8% 87414 96155.5 -9% 95977 96594 -1% 96833 96194 1% 90415 94402 -4% No of Bills (NOB) 55470 55376 0% 57857 58119 63836 58716 9% 63387 59599 6% 60137.5 57953 4% Conversion 68.11% 62.46% 5.66% 66.19% 60.44% 5.74% 66.51% 60.79% 5.73% 65.46% 61.96% 3.50% 67% 61% 5.16% Avg Ticket Size (ASP) 1046.25 1000.26 5% 1008.04 970.42 984.38 965.21 2% 968.33 963.42 1001.75 974.83 3% Ticket Size Qty (ASQ) 2.87 3.04 -6% 2.91 3.06 -5% 2.98 -2% 3.05 3.11 2.95 Avg Bill Value (ABV) 3000 3045 2931 2968 2935 2937 2957 2995 2955.60 2986.24 No of Pcs 159047 168551 168198 177780 190356 178694 7% 193543 185248 177785.85 177568.25 Net Sales (NS) 1664.03 1685.95 1695.50 1725.21 1873.82 1724.77 1874.13 1784.72 1776.87 1730.16 TEST MARKET Feb Wk 1 (Jan 29th - Feb 4th) Feb Wk 2 (Feb 5th - 11th) Feb Wk 3 (Feb 12th - 18th) Feb Wk 4 (Feb 19th - 25th) OVERALL 2018 2017 Var% Footfalls 4359 5902 -26% 4753 6147 -23% 5476 6227 -12% 5466 6434 -15% 5013.5 6178 -19% No of Bills (NOB) 3062 3086 -1% 2879 -6% 3247 3059 6% 3143 3156 0% 3082.75 3091 Converson 70% 52% 17.96% 61% 50% 10.76% 59% 49% 10.17% 58% 8.45% 62% 11.83% Avg Ticket Size (ASP) 969.14 964.70 964.67 903.15 7% 986.92 868.84 14% 900.46 920.96 -2% 955.30 914.41 4% Ticket Size Qty (ASQ) 2.97 3.25 -9% 3.14 3.29 -5% 3.04 3.23 3.05 3.11 3.22 Avg Bill Value (ABV) 2881 3139 -8% 3031 2975 2% 3004 2807 2743 2866 -4% 2914.90 2946.53 No of Pcs 9104 10041 9046 10085 -10% 9882 9576 9821 9402.00 9957.25 Net Sales (NS) 88.23 96.87 87.26 91.08 97.53 85.86 86.23 90.45 89.81 91.06 (Over comparable period last year) (Only for LFL stores) Footfalls: All India: Down -4% overall, with only 1% positive variance seen in Wk4. Net Sales: All India: Up 3% overall. 9% in Wk3 with an upside in no. of bills & pieces; Test market: Up 14% in Wk3. Conversions: Positive throughout but fall significantly in Wk4. Test Market Conversions are more than 2x of All India number – campaign impact is evident.

Sell-thrus CHIKANKARI: ALL CHIKANKARI ALL INDIA TEST MARKET Department 2018 2017 Var Sale Qty QOH Sell Thru Woman Indian 29,356 32,330 47.59% 18,724 22,318 45.62% 1.97% 1,778 1,583 52.90% 1,187 1,058 52.87% 0.03% Woman Western 28,420 30,384 48.33% 22,140 34,880 38.83% 9.50% 1,360 1,235 52.41% 1,444 2,153 40.14% 12.27% Men 4,890 10,239 32.32% 5,598 14,612 27.70% 4.62% 226 720 23.89% 395 1,042 27.49% -3.60% Total Advertised 62,666 72,953 46.21% 46,462 71,810 39.28% 6.93% 3,364 3,538 48.74% 3,026 4,253 41.57% 7.17% Total Chikankari 81,268 95,003 46.10% 59,209 90,365 39.59% 6.51% 4,543 4,737 48.95% 3,901 5,496 41.51% 7.44%   POSTER STYLES 152 103 59.61% 19 31 38.00% 21.61% 7 8 46.67% 1 4 20.00% 26.67% 373 824 31.16% 1137 1335 46.00% -14.84% 40 32.20% 91 80 53.22% -21.02% 276 515 34.89% 128 520 19.75% 15.14% 20 26 43.48% 11 32 25.58% 17.90% 801 1442 35.71% 1284 1886 40.50% -4.79% 46 74 38.33% 116 47.03% -8.70% 2027 2824 41.79% 2150 2173 49.73% -7.94% 104 123 45.81% 148 127 53.82% -8.01% (Over comparable period last year) (Only for LFL stores) All India: Total Chikankari up by 6.5%, 6.9% for the advertised categories; In light of the fact that the styling of the shoot was more contemporary and not traditional/ethnic, WW & MN show a significant 10% and 5% increment respectively. Test market: Up 7.44% overall. WW specifically outperforms country average with a 12.27% upside in sell thru vs last year. Poster style sell thrus are healthy for WI and MN but the stock levels for WW are lower than even last year which has led to a negative sell thru.

Sell-thrus of poster styles Women Indian Only 2 out of the 3 poster styles hit the market. The #Kurtalong could not achieve a good Sellthru because it had a total stock of 70 pieces across the country. That is 14 size sets. Women Western The #Dress and #Top were common buys between 2017 & 2018. The buy for 2017 for these two styles was 2,472 pieces while in 2018 it was only 324 pieces! That’s 48 size sets for the #Dress and 16 size sets for the #Top. A low sell thru in these two styles is not surprising. Men’s Only 4 out of the 6 poster styles hit the market. The #Jkt Nehru enjoyed a healthy sell thru of 54.42% but again this was basis a minute 147 pieces across the country which is 29.4 size sets. Department Category 2018 2017 Sale Qty QOH Sell Thru WI #KrtLngSlm 137 48 74.05% #KurSet2pc 19 31 38.00% #Kurtalong 15 55 21.43% Women Indian TOTAL 152 103 59.61% WW #Dress 138 102 57.50% 457 248 64.82% #Pant 60.76% #Skirtlong 89 579 13.32% #Top 52 32 61.90% 680 1087 38.48% #Tunic 46 80 36.51% Women Western 373 824 31.16% 1137 1335 46.00% MN #BushShirt 56 278 16.77% #Jkt Nehru 67 54.42% #KurtaLong 111 320 25.75% 57 189 23.17% #KurtaShrt 58 75 43.61% #ShirtFttd 27 53 33.75% #Trouser 22.06% GRAND TOTAL   2027 2824 41.79% 2150 2173 49.73%

Summary Remarks: Footfalls, Net Sales & Sell-thrus Footfalls, Net Sales & Conversions The campaign was moderate in intensity – 40% reach at 1+ frequency. Footfalls remained flat or slightly negative across the country. Conversions remained single digit positive compared to last FY. ASP has seen a 8% improvement at a country level. Sell-thrus The styling of the campaign was far more contemporary, on-trend and chic compared to earlier campaigns. Garments across categories were styled with accessories to make them look more Western and casual in natural in order to make them resonate with the TG. This seems to have worked well with very evident campaign impact on sell–thrus especially in the WW category (9.6% increment over last FY). Poster style sell-thrus are significantly higher in WI & MN but in WW the low stock seems to have caused a loss of business. Way Forward Our media strategy and choices have been effective. We need to invest higher in our ATL campaign, especially in print. Target 50% reach at 3+ frequency. Our look and feel of campaigns, moving to a more youthful, contemporary and candid approach, seems to be working and we should continue to push the envelope on these further in coming seasons.

CRM Campaigns-Chikankari Number of Campaigns executed: 5 Number of Customers contacted: 16 lac Campaigns targeted the All India customers twice and the last wave was targeted to Women Indian & Women Western buyers. Sample messages “New! Different forms of hand-stitching come together to make 1 gorgeous Chikankari masterpiece. Come find your favourite at Fabindia. http://bit.ly/2n8ID2s. “A collection that combines traditional craft with contemporary style! Experience Fabindia's Chikankari range now at a store near you. http://bit.ly/2EcJeGU.” Region Date TARGET CONTROL   Contacted* Responders %Hit Rate Responders Revenue Base Inc. Revenue CEF (1: ) MR01 & MR02 (excluding GGN) 02-02-2018 3.63 0.07 2% 312.53 - MR02 (GGN customers only) 06-02-2018 0.54 0.01 3% 68.66 WI&WW Buyers (all the regions) 09-02-2018 2.85 0.1 4% 580.71 0.53 0.02 122.62 13-02-2018 64.54 MR03-MR10 (All customers) 25-01-2018 11.89 0.19 1.6% 1717.24 1.73 1.4% 212.60 253.64 213 Incremental business revenue delivered, attributable to CRM campaigns : Rs. 2.53 Crores Campaign Efficiency factor : 1:213 Note: Campaign Efficiency factor cannot be ascertained where there is no control All values in the table in lacs Contacted means messages delivered

The digital Chikankari Look Book Created a collection Look Book that allowed users to click on the campaign poster styles (depicted by the blue dots on the left). Once clicked, the exact item opens in a new tab allowing for easy shopping.

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