Online home decor business has huge potential: Report

Online home decor business has huge potential: Report

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photographs: MyGubbi

According to a joint report by KPMG and CII, Indians are becoming more conscious about the way their homes look and this has given new wings to the home decor segment on online platforms. The report estimates that the e-commerce retail logistics market is valued at $35 billion (Rs 2.35 lakh crore) in 2018, and is projected to witness a growth of 36 per cent in the coming five years.

Growth potential of the industry is evident from the fact that several leading brands have sharpened or re-strategised their plans to take home larger pie of growing market in recent months. For example, Walmart announced this February the launch of redesigned home shopping experience on the web. This move was a part of the company’s reorganisation of its home group division, and highlights home products like furniture, accessories and other decorative items.

Pepperfry, a leading online furniture market platform, expects a sharp jump in online home and furniture (H&F) business in next few years. Pepperfry provides customers a choice through its portfolio of over 100,000 products across categories like furniture, home decor, lamps and lighting, furnishing, kitchen and dining, housekeeping, and hardware and electricals.

At e-commerce portal, home furnishings clock about 150,000 orders a month out of which 55 per cent orders are for bedsheets. It is one of the fastest-growing portfolios in the home division and contributes 20 per cent of the home and kitchen business and six per cent of the overall business. India’s online home and furniture market was pegged at about $1 billion in 2017 and is expected to grow at 36 per cent.

Interestingly, for over 60 per cent of customers, that is, home furnishing online buyers, come from tier 3 and tier 4 markets.