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.