online furniture market

8/21/2019 Online Furniture Market

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Relevance of onlineplatform for Furniture

Industry



AGENDA

E-commerce - Why e-tailing?

Furniture e-tailing – Why Furniture as a category will do great online

Understanding Customers - Who are they and what’s in it for them?

Implications – What do brands/vendors need to do?



Before we start – What do you think ofonline?

Online is for discount mongers – cheap cheap cheap!• 60%+ sales without discounts

• Repeat purchases are significant – shows genuine interest

Online is for urban population – hi-tech youngsters!

• 40% sales outside top 10 cities; expected to rise to 60%

Only low value products sell online

• Maximum basket size – 2.5 Lacs; 70-80% revenues from orders above Rs. 3,000

Online has excessive returns – loss making proposition

• <5% returns when managed properly, and doubles the conversions online



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Indian retail market is largely unorganizedE-tailing is providing impetus to growth of organized segment

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Increasing penetration of internet is fuelinge-tailing growth

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Consumers are also spending more timeonline to aid their purchase decisions

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Diversified access ensures that next growthwave comes from smaller cities and towns

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Bottomline: Indian e-commerce will witnessa huge growth ~$70 bn by 2020

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Furniture Retail is on its course of being thenext big category for e-commerce

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Early signs indicate a promising yetuntapped opportunity

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Internationally, furniture has already emergedas next big trend in online shopping

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Online search volumes are also rising rapidlyExpected to follow trajectory of established categories

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Even for e-tailers, Home and Furnitureprovide a great business case

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A d th i ifi t d t



And there are significant advantages overthe traditional physical model too

Network reach

Operational hours

Range of products

Product launches

Product pricing

Basket size

Floor negotiations

Retail Investment

Sales force

Warehousing cost

After sales

Delivery timelines

Product assembly

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Lastly, you can do so much more online!

Assortment + Depth

• Why make a choice? Go wide and go deep

Be closer to customers

• Get instant and accurate feedback on what customers want and what they perceive

Leverage market intelligence

• Data/Analytics/Behaviour/Patterns everything is at disposal

Run pilots/exclusivity campaigns

• ‘Will it work’? Push customers online by maintaining exclusive ranges

Trigger impulse buying?



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25-35 years is the key age group for HomeHowever, gender split remains equal

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60% sales comes from top 10 citiesSouth is the largest region with a ~40% share

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Men have a significantly higher basket size



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However women depict greater loyalty and



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Critical to address consumer sentimentsacross the board to enable online purchase

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A i f i ll it d



• Focus on online

• Exclusive range

• Invest into systems and processes

• On time delivery

• Be flexible – allow returns

A genuine focus is all it needs

Th k Y



Thank You

online furniture market

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