Home Decor Indian Furniture market to grow billion $32 by 2019 end .

& Unorganized being 85% and Organized being 15%

Furniture
Online players Changing the customer Mindset and behavior

Tourism and Hospitality are game changer

High Customization and 100% FDI

Advanced Supply chain

High-end and western style furniture demand

PEST Analysis

P E S T
 Housing for all by 2022  USD $ 5 trillion  Varying cultures & Festivals  AR,VR & 360 degree
 100 smart cities economy by 2025 in India technology
 100 % FDI for single  Slowdown in  Cheap Labor Opportunities  Omnichannel
brand economy  Analytics
 Average Family keeps their
 Importers in India  Growing middle  Digital Supply Chains
Furniture for 30years
require no license or class purchasing  Online Shopping
 Influencer marketing is very sa to internet
 Easy access
prior permission to power popular in furniture market
import furniture.  Increasing internet  Rural internet
 US and China Trade penetration penetration increasing
War  Unorganized sector
 Labor policies is more than 85%
Porter’s Five Forces Analysis
Pepperfry & Urban Ladder
•Consumers can High capital
meet their bar for entry
needs offline or
online Technology
•Customization
•Touch and Feel Threat of New
•Unorganized Buyer Entrants
is 85 % Bargaining Competitive LOW-MEDIUM
Power Rivalry
HIGH HIGH

Supplier Threat of
Bargaining Substitution
Power • Large number of
competitors (i.e. LOW-MEDIUM
LOW
•Assists business with Livingspace, • Some unique
logistics and other Flipkart,Walmart
support items but
and IKEA) high
•Large no of Suppliers
competition
SWOT Analysis of Pepperfry.com
Strengths Weaknesses
• Large product variety
 Low profitability
• Democratizing Furniture market in India
 Very complex business structure-a lot of
• Geographic spread-98% of orders are
business units
delivered within 48 hours
 Highly reliant on the co-founders of the
• home interior solution like civil & electric work
business
• Physical retail driving sale through 65 “studios”
 Struggle in New Segmentation
•Automated and tech led warehouses

SWOT
Opportunities Analysis Threats

•Expand by opening up physical stores in other  IKEA entering the market

tier 2or 3 cities  Highly fragmented business (a lot of
•Promote private label houses suppliers)
•GST 28% to 18%  Local Players Dominating
•VR and AR to visualize apartment with furniture  Ikea combining customer identification &
•Rental and Exchange business analytical capabilities from internet
•IPO retailing.
 Rentomojo & Furlenco
SWOT Analysis of Urban Ladder
Strengths Weaknesses
• Large product variety  Low profitability
• Strong Logistics  Very complex business structure-a lot
• Delivery within 24 hours of business units
• Private labels  Highly reliant on the co-founders of
• Emphasis on touch and feel the business
• 2 experience Centre in Bengaluru  Struggle in New Segmentation
• Website Experience

SWOT
Opportunities Analysis Threats

•Expand by opening up physical stores in other  IKEA entering the market

tier 2or 3 cities  Highly fragmented business (a lot of
•Listing more brands on website suppliers)
•GST 28% to 18%  Local Players Dominating
•VR and AR to visualize apartment with furniture  Ikea combining customer
•Rental and Exchange business identification & analytical capabilities
•IPO from internet retailing.
 Rentomojo & Furlenco
 Product
Pepperfry Urban Ladder

 Furniture
 Nautical Decor  More variety in Sofa set
 Living
 Military Decor as they form major
 Bedroom
 Wider variety in wall décor source of their revenue
 Mattresses &
 Strong in spiritual Décor  Strong in shelves variety
Bedding
 In flooring business  More variety in dining
 Decor
 Variety of glassware tables and chairs
 Lighting
 Rent and Exchange model
 Homeware
 Gifting
 Price
Pepperfry Urban Ladder
 Competitive & Affordable  Premium pricing as
pricing  various festive and focus on middle and
 Depends on customization occasional discount upper class
 periodic referral and schemes to the  deals of Week on
discounted coupon codes consumers Urban Ladder where
for certain categories of  Pricing depending customers are
product. on material, quality provided with
 credit and debit cards of the product discount offers on
companies and offers certain products
special discount to the weekly
partner credit card  Personalized pricing
company’s card strategies as more of
holders. inhouse brands .
 Place
Pepperfry Urban Ladder
 9 major stores
 69 “studio pepperfry”  Pune  2000 sq feet & and
 12 major stores  Bangalore 3500 sq feet sofa
 36000 sq feet ‘build to suit”  NCR centre in Bengaluru
home furniture warehouse  Chennai  189 own vehicles and
in Bengaluru  Mumbai using 3rd party logistics
 Modifying the manufacture  Own website in most cities
products  Imports furniture more
 300 vehicles of own and 18
delivering centres
 Promotion
Pepperfry Urban Ladder

 Theme based social media  invests heavily on  Trails of sofa at the

posts advertisement consumer’s residence
 Occasion based social  Blogs before purchasing it
media innovative content  Email Marketing online.
marketing  Social media  Area wise campaign
 Using AI and beacons  Print Advertisement marketing
 Videos showing how  Creative content  National level exhibitions
furniture is made  Discount vouchers
 689032 likes 838520 likes

123K Followers & 1824 posts 173K Followers & 1112 posts

18.6 K Followers 7640 Followers

28.6 K Followers 18K followers

Alternatives

Alternative #1: Simplify and expand private label

house brands strategy

Alternative #2: Simplify and geographically

expand physical store location

Alternative #3: Simplify and explore the furniture

rental market
Suggestions
Simplify & social Return to Profitability Growth and
media and Expand Prepare for I.P.O.

•Rationalize SKU count •Continue to •Prepare for Initial

•Utilities – Stop selling rationalize SKU’s Public Offering
•Focus on House Brands •Create targeted
•Sold to other suppliers marketing
campaigns for
•Implement quality under-
assurance model penetrated areas
•Process improvement •Seek
•Making of products – opportunities to
Snippets of new sell second brand
collection and direct into adjacent
them to you tube on markets
snapchat •Evaluate success
•Lucky draws of house brand
giveaways and strategy
announcement on •Formulate
snapchat, facebook contingency
so followers open snap plans
stories every time
pepperfry or Urban •Explore furniture
ladder posts rental or
something. expand
geographicaly