Pepperfry targets Rs 2000-crore revenue from ‘House Brands’ by 2020

By: |
Bengaluru | Published: June 20, 2019 1:39:33 AM

Additionally, Pepperfry aims to launch 30 Snooze studios by end of the fiscal, of which 12 have been launched, four standalone and eight in store. Clouddio is Pepperfry’s in-house brand for mattresses and sleep gear, including pillows and mattress protectors.

Although Pepperfry competes with other strong players in the segment like Wakefit, Sunday, SleepyCat and also Pepperfry’s main rival, Urban Ladder.

Home and furniture products marketplace, Pepperfry is targeting Rs 2,000 crore revenue from its ‘House Brands’ (in-house brands) business by 2020 to be led by its omnichannel strategy, its top executive told FE.

Additionally, Pepperfry aims to launch 30 Snooze studios by end of the fiscal, of which 12 have been launched, four standalone and eight in store. Clouddio is Pepperfry’s in-house brand for mattresses and sleep gear, including pillows and mattress protectors.

Ashish Shah, COO and founder of Pepperfry, said that the company launched its ‘House Brands’ in areas where they found a lack of products in a particular price point and style. The company currently has 10 ‘House Brands’ in all categories like furniture, décor, bedding, among others.

Clouddio, which was launched in January 2018, is one of the top three in-house brands for the company and of the target of Rs 2,000 crore revenue from in-house brands, Rs 500 crore will come from Clouddio, he added.

The company ventured into this segment because of the ambiguity amongst consumers regarding mattresses and sleep products and that the market had grown larger with consumers wanting to pay more for higher quality branded mattresses, Shah said.

“Market share of unorganised players is expected to drop drastically in coming years. The Indian mattress market, which is tightly in the grip of the unorganised sector led by the street-side shop and the local ginner, is fast shifting towards branded mattresses,” Research and Markets said in its latest report on Indian mattress market.

The organised sector is growing with rising demand for good quality mattresses among Indian consumers.

Nowadays, consumers have even started buying from international brands because of their high quality and contemporary products, it added.

The report further said that demand is growing in India with the rising awareness regarding mattress types and brands.

There are over 2,500 different types of mattress available on Pepperfry, out of which, about 100 SKUs are Clouddio.

The average selling price for a mattress on the site is Rs 12,000 and the mattress segment contributes about 8-9% of overall sales of Pepperfry.

Shah claimed that Pepperfry has a margin of more than 55% in the segment and it only uses discounts to trigger purchases.

Although Pepperfry competes with other strong players in the segment like Wakefit, Sunday, SleepyCat and also Pepperfry’s main rival, Urban Ladder.

The ‘Snooze Studios’, which are located in catchment areas across Mumbai, Delhi and Bengaluru, approximately have a carpet area of 700-1,000 square feet, the company said.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.