Furniture and home products marketplace Pepperfry has launched end-to-end home interior design solutions service, called Bespoke. Pepperfry said the services are currently being offered in Bengaluru, Mumbai and Gurgaon and the company plans to expand it to other cities.
The company said it aims to establish 17 Bespoke studios in 10 cities and achieve a gross merchandise volume of `350 crore by March 2020. Some existing Pepperfry studios have been refurbished to include this new service.
Ashish Shah, COO and founder of Pepperfry, told FE that the new studios will be franchise stores to reduce activation costs. Activations costs refer to the cost of establishing new studios.
Shah also said the company will be focused on the home interior segment because of the revenue it expects to generate from it. “The AOV (average order value) for furniture is Rs 20,000, but for Bespoke, we are expecting an AOV of `5 lakh and hence the segment will be a huge revenue generator for us,” he said.
Pepperfry also said it is looking to expand abroad to Singapore, Indonesia and Australia.
Analysts at market research firm Technavio estimated India’s online home décor market to grow at a CAGR of 50.42% in revenue over the period of 2014-2019.
While players like Godrej, IKEA, Urban Ladder have also entered the market with similar solutions, Shah said it is creating more interest in branded home interiors.
IKEA launched its big format store earlier this year in Hyderabad and plans to expand in all metros in two years but said much of its expansion will be driven through online.