Before the arrival of IKEA, the Internet made Indian furniture e-commerce develop rapidly

The modernization of the Indian furniture industry has been slow, and most companies are in a state of disorderly operation. Only a few large companies have tried networked operations. The situation is changing now. There are more and more furniture e-commerce companies in the market, and they are growing stronger through the power of the network. In addition, international furniture giant IKEA is about to enter the Indian market, and the industry has the potential to reshuffle.

With the development of e-commerce and the Internet, the online furniture market in Indian metropolis has grown rapidly in recent years. Online shopping furniture has become the first choice for white-collar workers and students living in big cities in India. There are already large-scale furniture e-commerce companies like Pepperfry and UrbanLadder.

Urban Ladder is an interior decoration vertical website, established in 2012. The company now covers 19 cities in India, with 80% of its orders coming from first-tier cities.

According to Rajiv Srivatsa, co-founder and CEO of Urban Ladder, furniture is one of the few categories in the e-commerce sector that is less important than discounts. Furniture design is important because customers want high quality products rather than lower prices. Therefore, he said: “Although many furniture e-commerce companies are using discounts to attract customers, we have reduced the intensity of discounts in the past six months. After all, everyone hopes to achieve profitability as soon as possible.

Pepperfry and Urban Ladder are positioned in the same way, and both companies offer online shopping services for interior decoration products to consumers. The company currently attracts a total of $128 million in financing, the highest in the industry.

In order to make consumers more intuitive about online products, Pepperfry has set up a dedicated offline “product experience store”. Consumers can experience the quality of the furniture in the experience store before placing an order online. Pepperfry co-founder AshishShah said that Pepperfry will also provide customers with design, catalog and consulting services for free.

According to Ashish, India’s top 15 cities account for 90% of Pepperfry’s total furniture sales, and eight of the first-tier megacities contribute almost 80%. Customers in these big cities have become accustomed to and trust online shopping, and they are Pepperfry’s main target group.


In addition to India’s first-tier megacities, small cities with fewer formal furniture stores have also become important markets for online furniture sales. In addition to keeping a close eye on the first-tier city market, Mebelkart has now acquired a number of customers in second- and third-tier cities such as Ranchi, Patna and Lucknow through digital marketing.

Consumers in these cities cannot purchase ergonomic chairs or folding beds online. In 2012, they only had 90 business transactions per month, and now they have reached the level of 30,000 singles per month.

But Mebelkart is still expanding its market share by discounts, and the average amount of each business has been reduced from 20,000 rupees to 4,000-10,000 rupees. Mebelkart is also the first platform to try to prepay a portion of the amount, customers can pay 500 to 1000 rupees first, and then pay the rest of the receipt. The total transaction volume of Mebelkart has increased from 48 million rupees four years ago to the current 1.2 billion rupees. Modspace

Modspace is located in Delhi and is a company that offers high quality custom kitchen furniture items and interior furnishings. Its co-founder Paul said: “Because the personalized products offered cannot be standardized for mass production, it is difficult to ensure both quality and low prices. This requires a balance between subjective design and customer demand based on the price range.


Viny Indresh, co-founder of Homefuly in Bangalore, also said that omni-channel service is the future trend, and interior designers, factories and distributors will be concentrated on the same platform. . “On the Homefuly platform, the selection of suppliers and the signing of contracts are all done online, and the transactions are conducted offline. We will provide the nearest storefront for customers based on their specific location. He said.

In addition to the vertical platform of furniture, e-commerce giants have also worked hard on furniture sales. For the Indian version, Tmall Snapdeal, the sales revenue and profits of the furniture category are very impressive, because the value of furniture items is generally higher. In order to expand the online sales of furniture products, Snapdeal is improving the navigation design of the entire website according to the customer’s choice habits, so that it can be modularized by style, such as retro style, modern style, British style.

Indian furniture market is about to appear uninvited guests

Swedish furniture giant IKEA is expected to enter India at the end of this year, which will have a major impact on the Indian furniture market —— at least the big city furniture market Shock. “The IKEA brand has great appeal to Indian consumers. In order to remain competitive, Indian home furnishing retailers must venture into smaller cities, said Frigank of RedSeer Consulting.

IKEA is best known for its DIY model, but DIY is still a new gadget for most Indians. Big cityResidents and those who have lived abroad may be more likely to accept this approach. UrbanLadder co-founder Rajiv believes that IKEA will promote brand and design awareness in the Indian furniture market. & ldquo;It will also drive improvements in the retail store experience. Many offline furniture sales companies in India have been in a stagnant state for the past seven or eight years, he said. Mobile phone sales are growing rapidly

As the popularity of smartphones continues to increase, sales on mobile apps are increasing rapidly. 40 to 45% of Urban Ladder’s furniture sales come from APP. Homefuly also plans to launch its own omnichannel APP platform in the next two or three months, and will include interior design.

There are still shortcomings in the furniture industry

The biggest difficulty in online furniture sales is in logistics. Furniture transport requires specialized trucks and cannot be mixed with other items. Due to the small size of most furniture, the truck’s transport capacity is greatly wasted. Therefore, 10-15% of the furniture price is spent on transportation costs.

Sales of durable consumer goods, including furniture, electrical and electronic products, are growing rapidly, but the services of logistics and transportation companies have not kept up. Consumers want couriers to be trained to provide installation services like offline sales companies. However, most online furniture sellers are currently unable to provide one-stop service. Express and security still need different professionals. In addition, furniture manufacturers are more concentrated, which also makes the transportation distance longer and more costly. To solve this problem, Pepperfry has set up furniture storage centers in Delhi, Mumbai, Jodhpur, Jaipur and Bangalore, and 17 distribution centers across the country. It has now built a comprehensive distribution network with 400 trucks covering more than 500 cities. Consumers are the biggest winners

Industry experts believe that the Indian online furniture industry will see explosive growth in the next four years. In order to meet consumer demand, online furniture companies need to pay more attention to the improvement of design and service levels. The development of technologies such as virtual reality, augmented reality, and hybrid models will also bring new opportunities to the online furniture industry. Future online furniture platforms can automatically connect customer needs, manufacturing and back-end supply chains.

Indian Furniture Industry

Due to the huge market potential, there is plenty of room for multiple types of sales companies to participate. Vertical e-commerce in the home appliance industry can deepen the market segment, but the horizontal integrated e-commerce platform can also help cultivate customer spending habits, which is also beneficial to the entire industry. With the increase of competitors, the biggest benefit is undoubtedly the Indian consumers. Source: 竺道

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