As competition in home furnishing and furniture space increases, Flipkart has put in place a strategy to grab market and mindshare in this segment.
During the ongoing Big Billion Days sale, the e-commerce firm has on offer some attractive deals in this segment. “You will see deals like never before in the furniture space,” said Anil Goteti, senior director, retail, Flipkart.
Flipkart is not the only company in that space. Amazon, Snapdeal and Paytm are looking at offering the best deals as well. In fact, if there is a higher price on Paytm compared to any other e-commerce platform, it has decided to match the price in an attempt not to lose customers. Then there is competition from niche e-commerce players like Urban Ladder, Fab Furnish and PepperFry, who deal only in home and furniture.
A Flipkart source said discounts in the home and furniture space may go up to 70-80%.
The Diwali season is a chance for Flipkart to strengthen its furniture business that is just three months old. The home and furnishing business is a year old. Post-Diwali, Goteti expects furniture to occupy a higher percentage in Flipkart’s overall revenue mix. “That is the intent behind offering furniture this Diwali,” he said.
The reason is simple — even though the volumes are lower, the average transaction price and margins are higher in the furniture business. Transaction size is in the range of Rs 10,000 to Rs 20,000, and margins are three to five percentage points higher as well.
“There is a huge opportunity to make margins in this space,” said Goteti.
This Diwali, analysts expect the trade through online commerce to reach $6 billion, and home and furnishings will play an important role. For Flipkart, the home and furnishing business is expected to grow by 50% and the furniture business to grow over 100%.