1. Market entry proposal for Fabindia
In bay Area, California

2. Why Bay Area? Highest Asian/Indian concentration in the United States
Density of professionals with great brand awareness of Fabindia

3. Why Bay Area? High disposable incomes
Environmentally aware and socially responsible catchment

4. Asian distribution

5. Plan- 555
5 years, 5 stores, 5 million

6. 5 Stores
We feel just the Bay Area has the potential to justify 5 stores over the next 5 years.
This would be achieved by catering not only to the Asians (low hanging fruit) but by also bringing in a niche relevant home offer for the white community.
JC Penny has 9 stores and Pottery Barn has 8 stores, as of now
1 Pacific Commons
Planned, launch store size sft. 1st preference Fremont – Pacific Commons Mall

7. Average Sales per sft ft - $27/month
5 million
Acquire sft in 5 years which generates upwards of $27/sft
Average Sales per sft ft - $27/month

8. Current Market Scenario
With most retailers struggling, there is high turnaround in the realty market and stores are available in desired locations. We feel Fabindia can bring in the required freshness, relevance and color in this ageing retail market

9. Proposed Location
We are in talks with most retail realtors in bay area but our 1st preference is pacific commons in fremont

11. Catchment Demographics

12. Marketing, finance, Admin % to sale
1st year Monthly
Year 1
Year 2
Year 3
Year 4
Year 5
Remarks
Store count 1 2 3 4 5
Carpet Area
2500
5000
7500
10000
12500
Rent & NNN/sft $6
$72
$84
5% escalation every year
Footfall/day 60
125
187
249
312
No of bills/day 30 62 94
156
Average Bill Value
$70
$73.50
$77
$81
$85
Target Sales/sft.
$25
$28
$29
$30
$32
Sales
$62,500
$750,000
$1,650,000
$2,598,750
$3,638,250
$4,775,203
10% escalation in like for like sales
Post freight GP%
65%
2.5 times of India price, same as online
Gross Profit on LP
$40,625
$487,500
$1,072,500
$1,689,188
$2,364,863
$3,103,882
Net profit %
11%
16%
17%
Rent % to sale
24%
23%
Personnel % to sale
19%
18%
Marketing, finance, Admin % to sale 9% 6% 7%
Investment
200000
230000
253000
278300
306130
336743
10% escalation in new store expense
ROI
42%
37%
54%
57%
55%

13. Who we are
Core team consists of people with varied experiences and expertise,  spanning telecom, bio tech and fast food franchise.   Members have been living in bay area for over 2 decades and are very active in the local community. All are United States citizens
Ranmeet, a graduate of fine arts, successfully ran a fast food franchise for over a decade in a prime bay area location.  She hails from a business family and her key strength is operational efficiency.  She implemented workflows which allowed lunches to be delivered ( student lunches in a matter of 3 hours) for an entire school district.  She managed a 15+ team of full and part time employees.  A go getter, she never hesitates to roll up her sleeves and get in the trenches as situation demands.   More recently she has been promoting road shows with designer Leena-Ashima across major cities in continental United States.  Her work with Leena-Ashima had a direct impact in increasing revenues 300%. 
Ravi, a 25 year veteran of supply chain operations, is part of the senior management in a bio tech conglomerate with key responsibilities that include managing NPI (new product introductions), setting up supply chain from grounds up, supplier evaluations and qualifications, ensuring service requirements and managing customer escalations.   Ravi’s education is Masters in Chemistry along with various certifications in supply chain management. 
Arun, is part of the senior management in a world leading telecom organization overseeing next generation of network orchestration.  He is a coach for Team Asha, a non-profit organization which trains individuals for marathons while raising money for under privileged children in India.

14. Why us? Lifelong loyal customers - live and breathe Fabindia!
555 plan….bold vision to have 5 stores in 5 years with 5 million in annual revenues.
Over 2 decades of bay area residency
Strong financial standing and credit worthiness
Active members of Indian community.  Huge network!

15. Asks
As is evident from the P&L projections, post tax returns will be just about market returns on other instruments.
We therefore seek support in the below terms:
Waiver of Licensee fee
No additional share from revenue
Discount from Fabindia MRP of 30% rather than 20%
Exclusivity for Bay Area – as long as we stay on track with the projected plan
First Right of Refusal for any other location in California
Fabindia.com to support in generating visibility and diverting traffic/orders to US stores
Mandate from Fabindia that we can scout locations for the store – something the realtors are asking for

16. Thank You