If 2020 was the year of transition towards digital, this year is all about an omni-channel presence, in order to improve customer experience. Online furniture and home products marketplace Pepperfry, plans to scale its omni-channel presence through its experience centers, Studio Pepperfry. “It has evolved to become a key consumer touchpoint. Today, the stores account for more than 35% of the overall business, ”Naveen Murali, vice president and head of marketing, Pepperfry, told BrandWagon Online. Pepperfry currently has over 140 studios across more than 50 cities in India.
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, 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.
Read Also: As programmatic sees a rise in ad spends; connected TV too plays catch-up
Follow us on TwitterInstagram, LinkedIn, Facebook