FableStreet - Redefining Women's Workwear with Algorithmic Tailored Perfection
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The typical nature of formal and semi-formal clothes in the world of business wear has frequently left female office workers wanting more. Be it style, cut, or fit, there were not enough options available when it comes to office wear. To find a solution and to offer interesting workwear options to women, Ayushi Gudwani came up with FableStreet in 2016. FableStreet's unique algorithm ensures that every woman looks stylish and feels comfortable irrespective of the size or shape of her body. This is how FableStreet came into being and how this startup is solving the women's office wear dilemma.
In this article, let's explore the world of FableStreet—its founders, business and revenue model, funding, and more.
FableStreet - Company Highlights
| Startup Name | FableStreet |
|---|---|
| Headquarter | Gurgaon, Haryana, India |
| Sector | Apparel |
| Founder | Ayushi Gudwani |
| Founded | 2016 |
| Website | fablestreet.com |
FableStreet - About
FableStreet - Industry
FableStreet - Founders and Team
FableStreet - Target Market
FableStreet - Startup Story
FableStreet - Mission and Vision
FableStreet - Name, Tagline and Logo
FableStreet - Business Model
FableStreet - Revenue Model
FableStreet - Challenges Faced
FableStreet - Funding and Investors
FableStreet - Growth
FableStreet - Marketing Strategy
FableStreet - Advertisements and Social Media Campaigns
FableStreet - Awards and Achievements
FableStreet - Competitors
FableStreet - Future Plans
FableStreet - About
FableStreet is the brand to turn to for elegant, classic, and well-made workwear that fits your specific body type precisely. The products are more than just average; they are painstakingly crafted with elegant materials and attentive detailing to effortlessly convey your style at home, at work, or when you're having fun.
It is a premium workwear brand for online; offering timeless, versatile pieces, with fits tailored for your body measurements. The products are thoughtfully crafted with luxury fabrics and functional designs to give consumers a rich buying and wearing experience at affordable price points. FableStreet's products can be purchased online from all over the world.
FableStreet's USP is its 'FS Sizing Algorithm'. This proprietary fit algorithm has been developed by measuring Indian bodies- their data of more than 100,000+ measurements helps them give women a great fit (much better than market) with only 3 measurements (chest, waist, and hip) taken from customers during order placement. By taking just 3 measurements from the customers, 'FS Sizing Algorithm' extrapolates the remaining measurements to 95% accuracy.
FableStreet's core aim is to build a need-based brand by solving women's workwear issues by offering anti-gape silhouettes, non-sheer styles dress with pockets, comfortable styles, and high-quality fabrics - all at tailored fits. They also offer one on one styling sessions at the FableStreet apparel house to clients looking for customized workwear solutions.
FableStreet - Industry
In 2023, as per reports from Statista, the global apparel market is projected to hit an impressive $1.74 trillion, with an annual growth rate of 2.76% through 2027 (CAGR). Women's Apparel leads the segments, reaching a substantial $0.91 trillion.
The United States leads in global revenue at an estimated $351 billion. On a per capita basis, the Apparel market is set to generate around $225.80 per person in 2023, emphasizing its widespread impact on the global consumer landscape.
FableStreet - Founders and Team
Ayushi Gudwani
Ayushi Gudwani, founder and CEO of FableStreet, is an engineer by education. She is also an alumna of IIM Calcutta. Ayushi started her career in Lehman Brothers as a senior analyst. Later, she joined McKinsey & Company, where she worked in various positions from 2008–2015, before starting her own venture in 2016.
FableStreet - Target Market
There is a huge untapped women's western workwear market in India. However, the industry is growing at an unprecedented pace with an increase in the number of women entering the workforce. It is the fundamental growth driver in the current economy. Besides, the industry is moving from an unorganized to an organized sector. Additionally, with the onset of social media and influencers, the e-commerce sector is fuelling growth in the retail sector.
Chayanika Goswami
FableStreet - Startup Story
The idea for FableStreet came from the common irritation of entering a trial room to put on a garment with the hopes of finding the right fit, only to walk out unsatisfied. FableStreet celebrates individual attractiveness without requiring size guarantees; it's more than just fashionable clothing. Say goodbye to the difficulties of the changing room and hello to FableStreet, where you can find beautifully fitted clothes that embrace your uniqueness.
While working for McKinsey, I noticed a lack of comfortable formal wear in India. Therefore, we developed a unique formula for 'style, comfort, and fit' coming together in one garment after connecting with over 1000 working women to understand their workwear requirements, '' said the founder of FableStreet.
As Ayushi spoke with more and more women, she realized that the feeling was universal! When it came to office wear, most women faced issues finding quality pieces that looked great, fit well, and most importantly, were comfortable (think pockets, non-sheer, stretchable, etc.). So, the idea turned into an interesting concept to execute.
FableStreet Founder
The FableStreet team measured over 100,000 Indian women to understand the problems associated with the western workwear options available in the market. After accumulating an invaluable data pool on the various types of body shapes, the team devised a 'Tailored Fit' algorithm that requires just 3 body measurements (chest, waist, and hip) along with height to extrapolate the remaining measurements with great accuracy. Ayushi even interned over the course of six months in an apparel house to understand the construction and sizing of garments, before launching FableStreet.
FableStreet - Mission and Vision
The company's vision was straightforward. Women shouldn't have to choose between comfort and style or scurry from store to store in search of that perfect outfit; rather, shopping for work attire should be enjoyable rather than stressful.
FableStreet - Name, Tagline and Logo
The naming of the brand was a very thoughtful decision to ensure that women find meaning in the brand they are shopping. Globally, "Street" (as a word) is associated with shopping, for example, Oxford Street, 5th Avenue, etc. FableStreet is a place for women to be confident and happy about themselves by making them "tailor their story". Hence, the name "FableStreet" made the most sense during brand inception.
FableStreet - Business Model
FableStreet follows a just-in-time model. The company does not keep any inventory and gets the outfits made as per order. The FableStreet business model operates on custom fits, strong brand equity, and affinity among the customers with real-time feedback. The main motive is to deliver a personalized experience and not just a product. From ordering to delivery to packaging to compliments the lady gets when she wears FableStreet is all considered a part of shopping from the brand.
Unlike domestic brands or designers, where the focus is primarily to design, the FableStreet team of skilled designers approaches product development through R&D on fabrics, fits, strength, etc. (in addition to design) which enables their garments to fit well, look great, and last longer. The team's vision is to make women feel beautiful and confident about themselves, irrespective of shape or size. FableStreet is a celebration of such women, their achievements, contributions, and professional successes.
FableStreet - Revenue Model
FableStreet excels in the online marketplace, operating a successful website that caters to a diverse customer base in India and key international destinations such as the US, Australia, UK, Dubai, and Singapore.
Central to FableStreet's revenue model is the potent blend of word-of-mouth marketing and online advertising. With an attractive starting price of Rs. 1495, the company maintains a solid profit margin, typically ranging between 60% and 65%, contingent on style and fabric choices. This strategic pricing, coupled with effective marketing, consistently attracts new customers, driving sustained growth and increased revenue. FableStreet's revenue model epitomizes its prowess in balancing accessibility, quality, and strategic marketing in the dynamic realm of online fashion.
FableStreet - Challenges Faced
Being a newcomer in the apparel industry, there were many challenges Ayushi had to face. The first and foremost challenge for FableStreet was cracking the product development and apparel operations while being an industry outsider. At the onset, Ayushi knew that the vision would be "building a great product - a quality garment that is comfortable, functional and fits well" but without a pedigree in design or textile, building it was definitely a big challenge. Hence, Ayushi decided to intern in a manufacturing unit for 6 months to learn the basics of apparel making. Secondly, she wanted to learn to formulate the operations plan and just in time the product development approach.
Ayushi then built the first collection for FableStreet from scratch - sourcing the fabrics, deciding silhouettes, customer trials, and working with masters and tailors to even sew the buttons. In a mature industry, she struggled with sizing and blindly copying western sizes was a challenge to dream of great sizes/fits for Indian bodies. The FableStreet team needed an affordable and convenient "good fit option" and build that for Indian Women. Thus, the FableStreet proprietary fit algorithm has been developed by measuring Indian bodies, backed by data of more than 100,000+ measurements.
FableStreet - Funding and Investors
FableStreet has raised around Rs 70 crore from three rounds of funding till date.
Here is the funding details:
| Date | Stage | Amount | Investors |
|---|---|---|---|
| September 22, 2022 | Series B | Rs 50 crore | Fireside Ventures |
| December 7, 2019 | Series A | Rs 21 crore | Fireside Ventures |
| July, 2017 | Seed Round | - | - |
FableStreet - Growth
FableStreet has been growing year on year for the last 3 years. The team has served over 30,000 customers and an average order value of Rs 4,500 as per news report of January 2020. FableStreet also has significant brand traction. The brand has 50% of their monthly revenue from repeat loyal customers. Moving forward, the team plans to scale faster. FableStreet has appointed Srinidhi Shetty, Huma Qureshi, and Sonakshi Sinha as brand ambassadors.
Classy yet comfortable formal wear for women was like a dream. Ayushi Gudwani took this simple insight and built a meaningful brand out of it. FableStreet not only provides great formal wear but apparel that makes the women feel happy and satisfied in their own skin.
Financials
FableStreet showed impressive growth in the fiscal year 2022, with a notable 158% rise in income from manufactured goods sales. Regulated filings that are accessible on the business intelligence platform Tofler show that the company's sales increased to an outstanding Rs 26.9 crore in FY22 from Rs 10.4 crore in FY21. But there was also a growing net loss during this time, rising by 41% to Rs 1.7 crore in FY22 from Rs 1.2 crore in FY21. FableStreet's strong revenue growth illustrates its tenacity and success in the competitive industry, especially in spite of the increased net loss.
Arbaz Sayed
FableStreet - Marketing Strategy
After acquiring the first 100 consumers, the FableStreet team approached marketing and brand building systematically. The team started with a paid marketing approach, sharing the story and the products, via Facebook. They also built a social media presence, sharing relevant products and customer stories.
As brand awareness increased, organic traffic also started increasing. Given the uniqueness of the FableStreet business model and product, they garnered significant press in the early launch days itself. This press attention added to increasing awareness. During the 3 year journey, FableStreet has also tied up with complementary brands to make the clients aware of their existing and new products.
FableStreet - Advertisements and Social Media Campaigns
FableStreet Campaign
Fits Like Nothing Else
Bollywood celebrities Sonakshi Sinha, Huma Qureshi, and Srinidhi Shetty have joined FableStreet, the top western apparel brand under FS Life, as brand ambassadors.
This calculated action is a part of the brand's #FitsLikeNothingElse campaign, which highlights how important it is to customize apparel to fit a variety of Indian body types. With these well-known performers, FableStreet hopes to highlight its dedication to diversity and demonstrate its leadership in offering fashionable, well-fitting clothing options to a wide range of people.
FableStreet - Awards and Achievements
FableStreet has received significant awards and strong press given the strong brand and unique business models at the early stages.
- Business World Young Entrepreneur Award, 2019
- India Today Cover Story - 10 Women changing SME landscape
- BT Coolest Startups 2018 (Business Today)
- FICCI Young Leaders 2019
Pooja Uniyal
FableStreet - Competitors
Though FableStreet has the USP of offering tailor-sized comfort and style to women purchasing formal wear from the brand, it still faces direct competition from many brands. The top competitors of FableStreet are eShakti, Cloud Tailor, and Sene Studio.
FableStreet - Future Plans
Owned by FS Life, FableStreet is making a foray into offline retail with plans to build three stores in prominent locales including Phoenix Marketcity in Kurla, Phoenix Palladium in Lower Parel, and Phoenix Mall of Millennium in Pune, Maharashtra, between mid-September and mid-October as per news report of September, 2023.
Founder and CEO Ayushi Gudwani plans to open at least five locations by the end of the fiscal year, with more expansion planned into Bengaluru and Delhi. This calculated action demonstrates a dedication to providing a flexible and approachable fashion experience across digital and physical platforms, which is in line with FableStreet's online success.
FableStreet - FAQ
What is FableStreet?
FableStreet is an online shopping website for modern professional woman, who is conscious about quality and fit and looking to curate their wardrobe with effortless and stylish.
When did FableStreet found?
FableStreet was Founded in 2016.
Who is the founder of FableStreet?
Ayushi Gudwani, is the founder of FableStreet.
What is the revenue of FableStreet?
FableStreet’s revenue was Rs 26.9 crore in FY22.
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