Furniture Players in India Adopt Omnichannel Strategies

Strategy Briefing

About This Report

Oct 2018

India’s furniture industry is dominated by unorganised local and regional players; however, the entrance of e-commerce players and Ikea has altered the furniture retail landscape. Online sales will be key to growth in the category, as players ramp up their supply chain networks. Rivalries are expected to intensify as both online and store-based players compete to gain the attention of aspirational consumers seeking out stylish and affordable home furnishings.

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Furniture Players in India Adopt Omnichannel Strategies

High economic growth, but low average incomes

India is a country characterised by tradition, diversity and dynamism. It has experienced relatively high economic growth rates, especially when compared with developed markets. Nonetheless, more than 48% of the country’s population lives below the international poverty line.

Unorganised players dominate India’s furniture industry

India’s furniture industry is dominated by unorganised local and regional players (including “mom and pop” stores). There are a handful of store-based organised players, including Godrej Interio and Home Town; however, the most dynamic growth of late has come from the entrance of e-commerce players, for example Pepperfry, Urban Ladder and Flipkart.

At long last Ikea opens its doors in India

In August 2018, Ikea opened its first store in India, in Hitec City, Hyderabad. The new store represents the beginning of Ikea’s expansion into India, with other stores in major cities and online sales planned over 2019-2025. Ikea claims to offer “furniture for all” through its competitive pricing strategy, but its success is likely to depend on its online sales capacity.

Omnichannel strategies become crucial to success

Offline furniture players are looking to expand online, while online players are moving offline. Omnichannel strategies are becoming a crucial prerequisite to success in India’s home furnishings industry. Augmented and virtual reality, online sales, delivery and installation are some of the ways in which companies vie for consumer attention and loyalty.

Home furnishings the category to watch

Home furnishings, especially furniture, is fast becoming the category to watch in India, as store-based and e-commerce players broaden product offerings, expand store networks and improve logistics capabilities to aid online sales. 

Introduction

Scope
Key findings

Demand Factors

India: a country characterised by tradition, diversity and dynamism
India: demographic snapshot in 2017
What does an Indian household typically look like?
Rising incomes leads to aspirational demand
Growing affluence shifts consumer focus to interior design in India

Snapshot: Home Furnishings in India

India’s home furnishings 2017 snapshot
Key characteristics of India’s home furnishings industry
Ikea set to shake-up India’s highly fragmented furniture landscape

Competitive Landscape

India’s furniture industry dominated by unorganised players
Small number of organised store-based retailers selling home furnishings
Godrej Interio’s latest private label tackles smaller living spaces
Ikea enters India in 2018
Ikea’s “furniture for all” in India
Ikea plans online sales and smaller format stores in India
Ikea’s marketing campaign in India
Rivals respond to Ikea’s entry in India

Omnichannel Strategies

Digitalisation in India: paving the way for online furniture sales
BharatNet to address India’s low fixed broadband coverage
Mobile drives digital connectivity in India
Time saving a major motivation for shopping online in India
Online players pushing into furniture for sale and for rent
Pepperfry expands its offline presence
Rentomojo positions itself as a fintech start-up
Flipkart relaunches its private label furniture range in India
Omnichannel strategies of India’s furniture players

Key Takeaways

Key takeaways for India’s home furnishing industry over 2017-2022