On
the back of product expansion, expanded domestic manufacturing, a broad
franchisee network, and a growing rate range and width of furniture, according
to Kaul, the home innovation and furniture company is primed for growth of
roughly 25 to 30 percent.
In an interview with ETRetail, Rakesh Kaul,
CEO and Whole Time Director, Somany Home Innovation Limited (SHIL), stated that
the furniture brand Evok by Hindware wants to reach the three-digit store count
mark in 2022.
SHIL is Evok’s parent company, and it engages
in several categories including consumer appliances, home retail solutions and
furnishings, and kitchen fittings. SHIL’s consolidated revenue from operations
was Rs 1,775 crore last year.
Evok now has 29 franchise locations and two
freestanding retail locations. Due to demand from nuclear families,
discretionary incomes, and India’s middle-class population, the company expects
to open 18 more franchise stores by the end of the year, bringing the total to
50.
“The business model for us is to be
considerably leaner,” Kaul said of the shop expansion approach. And as you
create a leaner business model, it’s inevitable that you’ll focus more on your
strengths, which are currently focused on product and brand, as well as
providing consumers with an experience. As a result, our concentration would be
on expanding franchise locations rather than our own.”
“By enhancing efficiency and cutting
expenses, we are focused on delivering profits,” he continued. On the back
of product expansion, expanded domestic manufacturing, a broad franchisee
network, and an increasing rate range and width of furniture, Kaul said the
company’s home innovation and furniture division are positioned for growth of
roughly 25 to 30 percent. Evok’s revenue increased by 35% year over year in the
second quarter of FY 2021-22.
Evok sells on its own website, through
franchise and retail locations, and through online marketplaces including
Amazon, Pepperfry, and Flipkart. The brand intends to focus more on its Direct
to Consumer (D2C) approach in the future.
“With D2C, we’ll focus on the client
experience, which includes speedier deliveries, great installation, and unique
EMI plans,” Kaul added.
At the same time, we intend to grow throughout
major cities and cover over 18,000 pin codes. “The combination of our
franchise approach, our own stores, and Evok’s website is a really formidable
route forward for the company,” he continued. Courtesy: www.retail.economictimes.indiatimes.com
