The Inside Track January 2016

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Volume 10. Issue 1 . January 2016 Rs. 25/-

THE

INSIDE TRACK CONNECTING THE DESIGN COMMUNITY Now view our web edition at www.theinsidetrack.in

Cover Story

T

he furniture industry in India has always been a local game. Due to the high level of investment required, both in time and money, and the problems in transportation, consumers preferred dealing with their neighbourhood carpenters, even when organised manufacturers set up shop in India. Howe ve r t h i s c h a n g e d i n 2011 when furniture entered the e-commerce space through brands such as Pepperfry, FabFurnish and Urban Ladder. These major players are on a high growth curve; driven by backing from international investors, growing internet penetration and shifts in consumer behaviour towards online shopping. Online portals give businesses the chance of having a greater reach without the heavy real estate costs. “Through an online store we can reach most parts of the country rather than using the brick and mortar format, which would have restricted us to metros. The high real estate cost, and the space required for displaying all the furniture, would effectively increase the product cost that a consumer would have to pay,” says Saurabh Ailawadi, Founder, Gulmoharlane.com. Consumers’ changed perception towards online shopping is a major influencer in this segment, thanks to the popularity and convenience of online shopping in other segments like fashion and electronics. Online furniture shopping a l l ow s c o n s u m e r s t o b row s e

The Online Revolution

With the rise of e-commerce websites specialising in furniture and furnishings, the future of decorating your home could well be online. BY ALYSSA LOBO

From Pepperfry: The online furniture market is expected to reach Rs. 4000 crore by 2020

a vast range of collections in various designs, colours, shapes and dimensions at one go as per their convenience. Easy and fast customisation gives them an edge over the brick and mortar stores.

From Urban Ladder: Some of the big pulls for consumers towards online furniture are discounts, wider choice and after-sales service

Free delivery and installation being offered by most online retailers and easy payment options are other reasons that make online furniture shopping far superior and convenient. However the furniture has still a long way to go before it can reach such levels of high adoption. But there are good signs for this sector. By 2018, India’s online marketplace is expected to grow to $14.5 billion (Rs. 88,921 crore) and online furniture retail’s share is likely to go up. It is expected that the online furniture market will grow with a CAGR of 75% and reach the $700 million (Rs. 4000 crore) mark by 2020. The Indian furniture and furnishings market consists of furniture, home textiles and other home décor products.

Bougainville Armchair from Gulmohar Lane

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