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1. Defining Competition
CATEGORY: HOME FURNITURE
PRODUCT # 69
Ayushi Mona
Roll Number 23024
PGP – 1, 2016-18

2. Product Launch : Home Furniture
Furniture Sector (5.8% of Indian
Retail sector)
Organized Sector
(15%)
Unorganized Sector
(85%)
Retailers
Wholesalers
ImportedManufactured
Dealer StoresFranchisee Stores
Home Furniture Market – 65% of total
furniture market valued at 577 billion INR
slated to grow to 1760 billion INR by 2020
India is the 33rd largest importer of
Furniture and 3rd fastest growing furniture
market in the World
CAGR of 25%
Source: Euromonitor
Category Overview
Assumption: Launching Home Furniture
Store with Bedroom, Kitchen, Seating,
Living Space furniture

3. Levels of Competition
Product Form Product Category
Generic Competition Budget Competition
• Unorganized Retail stores,
• Organized Chain stores (Godrej Interio,
Durian, Nilkamal, Damro, StyleSpa,
CasaCraft, Amberville)
• Indigenous Cane Furniture,
• Antique Furniture
• Fab India
• Home Automation (Electronically operated
households)
• Earth Setting (traditional setting with mats)
• Furnelco.com – Rental Home
Furniture
• Online Marketplaces for Furniture
(vertical players like Pepperfry.com
• Horizontal players like Amazon.in and
Flipkart)
• Department Furnishing Stores (Home
Stop, Home Centre, Home Town), D-I-
Y Home Furniture
• Consumer Electronic Appliances
• Two-wheelers
• Family Holidays
• Premium Smartphones
• Home Security Solutions

4. Direct
Competition
stores: Godrej
Interio, Durian,
Damro, Style Spa
Indirect
Competition:
Good Earth,
Portico, Home
Center, IKEA
(launching on 11th
August)
Home Electronic
Automation /
Earth Setting
Tour Packages,
Home Appliances,
Consumer
Durables

5. Types of Competition
Customer Orientation
Marketing Oriented
Competitors Focus on:
• Urban population
• Nuclear Family
• Consumer Class (Middle and Urban Class)
Source: Passport (Euronmonitor)
• Distribution Channel:
Three-tier selling and distribution structure, (distributor, wholesaler and retailer). A typical competitor operating on an all-
India basis could have between 400-2300 distributors, depending of the product and the final consumer. The retailers served
directly by a company’s distributors may similarly be between 250,000-750,000.
• ATL promotion by niche brands; Sales promotions offered by all retailers especially during Diwali and sale seasons
Consumer purchase data by category
Modular KitchensBedroom
Dining
Living
Miscellaneous
Source: AC Nielsen

6. Types of Competition
Resource
Oriented
55%
19%
9%
7%
3%
4% 3%Wood, Plywood, MDF
Metal
Plastics
Leather
Textile (Upholstery)
Rubber
Glass
Fierce competition in the Home Furniture Sector due to multiple uses of all source
material
Panel Industry/ Chipboard
Firewood/ Domestic
consumption
Construction/ Joinery
Packaging /Pulp & Paper
Bags/Footwear industry
Geography
Oriented
• 80% of Online Market Place Sales for furniture come from Tier I cities
• Competition for European Style and International Furniture only in Urban Markets
• Colonial Home Furniture in niche markets like Goa and Pondicherry
• Consumption is consistent across geography and fluctuates with Per Capita Income
due to high average ticket size
Source: KPMG Analysis, 2014

7. Competitor Analysis: Direct
 50 exclusive showrooms across 18 cities
 800 dealer outlets in India
 2 overseas branches
 Strong Brand Equity
 High Technical capability
 Part of Godrej Boyce Business Group
 Online retail via marketplace partners
 Largest Furniture Manufacturing
 Strong Brand association (over 50 years old)
 Strong R&D
 22 locations
 25 exclusive showrooms
 35% business is in Home Furniture
 Flagship brand of Indian Furniture Products Limited,
part of Birla Group
 Strong Chain of 14 wholesalers and 450 distributors
 Furniture design is based in Europe with strong
design element
 StyleSpa is their premium home furniture line
 Net income 83 million
 90 exclusive showrooms
 Moulded plastic manufacturer of home furniture
 Diversified Home & Lifestyle Business – Launched
@Home
 8 manufacturing locations
 Joint ventures in Sri Lanka and Bangladesh
 350-member wide direct sales network, a 350-plus
strong dealer network, 33 regional offices in all major
Indian industrial cities and 24 warehouses

8. Competitor Analysis: Other Notable Competitors
• Family owned enterprise
• Legacy presence - 75 years
• Wide range of furniture from around
the world under one roof
• Number of brands across various
product categories are sold from the
company’s retail stores - ArteM,
Divani, Loddenkemper, RioArt,
Sauder, Sherwood and Softplus.
• Showrooms spread across the two
southern Indian cities of Bangalore
and Hyderabad
• Provides ‘designing your own
interior sitting at home’ service with
the help of an online interactive room
designer
• Major player in imported furniture,
offering living, bedroom, dining
room and office furniture
• Set up by the Dokania Group,
which has been involved in
plywood manufacturing for about
25 years
• Durian has over 40 imported
furniture showrooms in the
country
• The company also offers free
interior design consultancy and
free delivery and furniture
installation
• Offers exclusive, premium
customized furniture
• 2 production center
• Retail centers limited to
Maharashtra, Goa, and, Pune
• Relies on a network of existing
wholesalers and retail dealers for
distribution
• Stable player in the market for 45
years
Source: Company Websites/ Euromonitor

9. Competitor Analysis: Home Furniture Marketplaces
• Hybrid Model: Both online and
offline retail of furniture. Online store
and partnered showrooms located
in Bangalore and Delhi-NCR.
• Inventory Model: Products sourced
from various brands are stored at
FabFurnish.com’s warehouse and
the orders are dispatched to the
customers from there.
• Product Assortment: The e-com site
retails 60,000 products from over
500 local and international brands.
FabFurnish.com offers a dynamic
range of products from its private
label brands too.
• Marketplace Model: Pepperfry.com
follows a managed marketplace
model. In this model, the orders
are dispatched directly from the
vendor to the customer.
• Online Store: The site provides a
platform for a large number of
sellers to showcase their products.
It works in close association with
1000 merchant partners to offer a
huge range
• Product Assortment: It gives an
offering of 45,000 products from
over 200+ brands.
• Customization options : - User
Friendly; Same sofa design ,we can
select multiple size options.
• Active role in product design, They
also provide support to
manufacturers also in scaling up their
operations
• All the products are transported and
delivered using the Urban Ladder
delivery network. They take care of
the supply chain end to end. They
have their own branded trucks. They
send orders to these cities through a
network of local suppliers and
transporters
• UL has higher lead time than fab.