JOIN USPepperfry targets Rs 2000 cr sales by 2021
Online furniture marketplace Pepperfry is set to expand its offline business by rolling out Pepperfry snooze studios, displaying its in-house brand Clouddio and other sleep related products.
The company aims to garner Rs 2,000 crore sales revenue from its private labels, of which Clouddio's share would be 25% by March 2021.
Peppefry launched Clouddio in January last year. The in-house brand constitutes mattresses, pillows, quilts and bedsheets. Mattresses form the largest component of it. In just one and a half year’s time, Clouddio has grown manifold, Ashish Shah, COO and founder, Pepperfry told DH.
“Clouddio now accounts for close to 40% of the sales that happen on Pepperfry, making it the largest house brand in the company,” Shah said.
Out of the 30 Snooze studios to be opened by end of the fiscal, 12 have been launched already (4 standalone and 8 store-in-store). About 5-6 store-in-stores will be opened in Bengaluru.
The unique design experiential centres will be located in catchment areas across Mumbai, Delhi and Bengaluru with a carpet area of 700-1,000 sq feet.
These stores also have labs where the customer would be able to touch and feel the material that would go inside the mattress. “We want to remove the ambiguity in the mattress business,” Shah said.
Mattresses along with bedding form the second largest category on Pepperfry, the first being furniture and the third being lamps and lightnings. Mattresses, alone, make up 8-9% of the total business. In mattress, Shah said, the company has around 2,500 products, out of which 100 would be from Clouddio; despite the small number, Clouddio contributes to most of the sales.
“When customers plan to buy a mattress, they only know the thickness that they are looking for. So, there’s a very limited understanding. We believe that this is a highly specialised business where customer education is required,” he added.
Pepperfry accounts for more than 50% of the total market share of the Rs 300 crore online business in the sleep category, the COO mentioned. “By 2021, we want to make Clouddio a Rs 500 crore brand,” he said.
A total 50%- 55% of the company’s revenues come from its ten in-house brands, he said.
"In Clouddio we have five variants of mattresses, with prices ranging from Rs 3,500 to Rs 45,999," said Shah.
The mattress and sleep gear industry in India has been estimated to grow at 8-10% CAGR and pegged to grow to $2.5 billion by 2022.