"Our target is to reach 20 million Indian homes in the next few years through our omnichannel business model, that comprises both online marketplace and 'touch and feel' outlets across major cities," Pepperfry business head (offline expansion) Naresh Thadani told Business Standard here.
The company today launched its first store in Uttar Pradesh, barring National Capital Region (NCR), at Lucknow. So far, Pepperfry has launched 33 such studios in 17 major cities of India over the last 3 years.
GMV is the total value of merchandise sold during a timeframe through a customer-to-customer exchange site and is a standard measure of growth for online marketplaces like Pepperfry, Flipkart etc.
Pepperfry is targetting to expand its outlet network to 70 by March 2019, of which UP is likely to get another 3 stores. “UP is a big market and we are looking at opportunities and business partners to expand our studio footprint in the state.”
Thadani said Lucknow store, spread over 5,000 sq ft, was one of the largest stores in India. Of the 33 stores, 26 are owned by Pepperfry while the remaining had been operating under the franchisee model. Bengaluru and NCR have maximum 6 Pepperfry studios each, followed by Mumbai with 5 outlets.
The country’s organised furniture segment is gearing up for greater competition with the planned entry of world’s largest furniture retailer, Ikea, set to launch its maiden store in Hyderabad later this month after years of market research and planning. Ikea had announced its India roadmap in 2012 with an initial investment of almost Rs 105 billion.
Another homegrown organised furniture arm of diversified Godrej Group, Godrej Interio has lined up investment of almost Rs 6 billion to expand its capacity and product portfolio in wake of the entry of Ikea and expansion plans of other players like Pepperfry.
Currently, the domestic home furnishing market is pegged at about Rs 650 billion, of which the organised sector share is estimated at 10-15%, but growing fast.
“We welcome the entry of more organised retailers in the furniture and home décor segment as it helps in creating awareness and expanding the organised market pie,” Thadani added.
Pepperfry is counting on its captive logistics wherewithal comprising fleet of 40 trucks and trained sales team to beat competition going forward.
At present, the company claims to have about 10,000 vendors onboard even as it is planning to facilitate more vendors, including from UP, to showcase their products on its marketplace for a wider audience. Peppefry was launched in January 2012 and is touted as the country’s largest furniture and home décor marketplace.