Buying designer as well as affordable furniture should not be a hassle in a city like Mumbai. Yet, it definitely is and the survey ( based on NAM -2011 Furniture report India ) says more than 70% shoppers in India are disappointed with their furniture purchases. This includes minor purchases for home decor as well as big ticket purchases as designer sofas, bedroom sets, wall hangings , linen, paints and what not. City like Mumbai with over 1 crore in population, we would expect a robust environment of lots of furniture traders with various fashions and competitive prices. While it is definitely true that Mumbai has over 1000 furniture shops, it is hard to believe whether any shop has made a household name for itself for its designs and customer services.
Today, you can find many customer shops clustered in the goregoan West area, Colaba area, Mira Road , Jogeshwari Oshiwara and thane area. Also, there will be many stand alone shops in different parts of the city offering imported as well as handmade wooden and steel furniture. Then there are bigger players like Big bazaar, Hometown offering all kinds of furniture as well as too much stylish shops like Furniturewallas, BOConcept , Redandyellow and many others. Everybody is unique and seems to be doing quite well generating fixed income with their targeted list of customers. The most important question in mind is “WHO HAS ECONOMY OF SCALE IN THE FURNITURE BUSINESS” ? Who can build more and better stores as well as generate more revenue while keeping an eye on the bottom line and generating trust and goodwill of the customers?
The reality is much tougher in the Indian business climate for many to scale up and generate volumes while keeping customers happy at the same time. New and intelligent entrepreneurs today are taking this business online to take advantage of the rising middle class population who can take a risk to purchase the furniture online without that ‘touch and feel concept’. Some of the best known companies thriving online today are Pepperfry, FurnitureMartIndia.com ,Urban ladder and few others who manage market place model. Our particular example is of the company named ‘ Furniture Mart India ‘ who seems to be a lot different amongst others in terms of selection, business practices , services and pricing and seems like an interesting model to Succeed in the long term.
A Standard Information Services company
Furniture Mart India business Model
- Create economies of scale using modern technologies in manufacturing to develop cost effective selection of furnitures that are high durable and which provide minimum skilled labor in practice
- Easy to assemble furnitures that be easily shipped to any part of the country using standard logistics principles of L X B X H to cut down the freight charges , so as to make purchasing convenient and affordable to people across the country
- Standard parts and accessories will always be available in case of a breakdown of product of missing of parts during transit. Since furniture will be made according to fixed sizes with accurate measurements by machines, customers will be assured that product parts will be available even if the warranty does not apply.
- Few selection , yet great designs and standard sizes with affordable prices make it hassle free business transaction for the customer and the supplier
- Profits = Revenues – Expenses. If you are able to maximize revenues, with inversely having the expenses going down, then you did make a great profitable company. And thats what Furniture Mart India does. As revenues increases, expenses continue going down. They have no showrooms, rather a very efficient sales force and a big warehouse to ship out their products on time.
Consider purchasing something from Furniture Mart India and describe your experience here
Note : Mr Rahul is an ex-employee and an investor in the company. These are my personal views being with the company for over 3 years and do not necessarily reflect market reality