It is not often that a luxury brand is not only able to build its loyal set of consumers, but is also able to grow the business. Interestingly, D’Decor has been able to do both. The company posted a 40% increase in revenue from operations to Rs 723 crore, while net profit grew 55% to Rs 51 crore in FY22, as per regulatory accessed by business intelligence platform, Tofler. Cashing in on this growth, the luxury brand recently expanded by rolling its soft furnishing brand, FabriCare, which the company claims to be a different product when compared with D’Decor. “Consumers especially after covid have been spending more time at home, which resulted in a change in behaviour. We wanted home furnishings to stay beautiful and do not wear out for a longer period of time. Thus, the new brand has a different science in its construction. The products including curtain and upholstery, comes with a warranty of three years,” Ajay Arora, managing director, D’Decor Home Fabrics told BrandWagon Online.
According to regulatory filings, the company’s revenue from operations stood at Rs 515 crore in FY21, as it clocked net profit of Rs 32.8 crore. With this, the company currently sells six product categories, namely, curtains, upholstery, bedding, blinds, rug and wallpapers. “Curtains, upholstery and bedding remain our most sold products with a revenue split of either 40-30-30% or 50-25-25%,” Arora added.
Furthermore, in-run-up to the festive season, D’Decor added actor Alia Bhatt to its current list of brand ambassadors which includes actor Shah Rukh Khan and his wife Gauri Khan.
Moreover, for the luxury brand offline stores account for most of the revenue. “While online channels generate less than 10% revenue. However, within the physical stores multi-brand outlets account for 80% of the sale, while the rest 20% comes from our own exclusive brand outlets, respectively,” he highlighted.
With the roll-out of the new brand, the company aims to target value conscious consumers in tier-1 and tier-2 cities besides metro cities. As per the company, the product is priced between Rs 700-2,000 per metre. Additionally, the company claims to have added 2,000 fabric options with 300 points of sale. “FabriCare is a much better value proposition for the value conscious consumer. It is for the high usage areas in the home, hotels, public spaces. It is not easy to say that FabriCare is more premium than the D’Decor or more expensive, but it is built at a better value proposition to last. We have kept it selectively available as we are trying to educate the people who are selling it that what are the expectations from the product,” Arora said.
The company which claims to follow an integrated marketing approach, upped its advertising expenses 73.7% to Rs 7 crore in FY22 from Rs 4.03 crore in FY21. Moreover, the company already released a set of ad films with brand ambassadors Alia Bhatt and Shah Rukh Khan. “We have a strong marketing rollout across different mediums such as television, print, digital, among others. However, our focus will be more on videos on digital.” Furthermore, the company claims to invest 10% of its revenue to promote the new brand.
Moreover, the brand majorly works on a model which is demand lead and does not maintain any stock. Largely, sample products are supplied to retailers, and later based on consumer requirements its products are disseminated to sellers. “It is B2B2C business-to-business-to-consumer) where the retailer does not hold inventory, but we do. In a certain way, we are direct to consumer (D2C), but there is a retailer in between whose main role is to provide the customer with the service of stitching, as well as make recommendations to the customer based on their need or specifications,” Arora explained.
The company claimed to provide either an additional discount of 10% or a style service for the upcoming festive season. “Since the last decade, we have been spending 10% of our revenue on festive advertising,” he said.