If 2020 was the year of digital transformation, this year is
all about having an omni-channel presence to better customer experience.
Pepperfry, an online furniture and home goods marketplace, wants to expand its
omni-channel footprint through its Studio Pepperfry experience centres.
“It’s evolved into a critical customer touchpoint.” According to
Naveen Murali, vice president and head of marketing at Pepperfry, “the
stores now account for more than 35 percent of the whole business.”
Pepperfry presently has over 140 studios in over 80 Indian locations.
The expansion strategy is also in line with the company’s
aim to reach consumers beyond the larger catchment areas of metropolitan and
tier 1 cities. In June last year, the company had also announced the launch of
its franchise program – Pepperfry Accelerator Program. Based on the franchise
owned and franchise operated model, the company said that it aims to establish
over 200 studios in one year through this initiative.
According to Murali, the investment in home decor and
furniture has increased over the last two years, as people spent most of their
time at home. This trend is likely to continue even as people gear up to shift
back to their work cities. “Today, people want the kind of furniture and
setting that they had back in their homes. While, they compromised on their
home furnishings before, consumers are now investing continuously on it,” he
added.
As for its marketing, Pepperfry plans to spend on both
digital and mainline media which will include print, TV and outdoor. Within
mainline media, the spend may differ. “Our strategy for this year is to
strengthen our existing hold while also reaching out to onboard more people
from other towns. While we will adopt a campaign specific strategy, the plan is
to invest a lot more money towards the middle and bottom of the funnel,” Murali
stated further.
Pepperfry Private Limited’s
net revenue shrank 13.89% to Rs 203.43 crore in FY21 from Rs 236.25 crore in
FY20, according to regulatory filings sourced by business intelligence firm,
Tofler. While, its net loss contracted 61.56% to Rs 47.2 crore in FY21 when
compared with Rs 122.80 crore, during the same period in the last fiscal. The
company’s advertising promotional expenses decreased to Rs 71.5 crore in FY21.
Courtesy: www.financialexpress.com
