FabMart’s new retail model to tap rural markets

FabMart.com, a part of Madanapalle Retail Venture

from Andhra Pradesh has come up with a new retail model to address demand-supply needs of smaller towns in India. Named as ‘RU-BAN’, FabMart.com wants to integrate their retail business with the social fabric of small towns to empower the rural consumer. Through this new model, rural customers will be offered a choice of products that are otherwise available only in metros and large Indian cities.

The aim behind the new format is to place the power back in the small retailers’ hands to create a significant market opportunity for brands that want to make inroads into the smaller towns of India. The retailers book 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.

After successfully trying the model in 20 towns of Andhra Pradesh, FabMart.com now plans 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.