Pepperfry: Drawing in young shoppers

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New Delhi | Published: October 22, 2018 1:49:12 AM

With a two-pronged campaign strategy in place, Pepperfry looks to engage young buyers this festive season.

pepperfry, companyThe company has earmarked a minimum of Rs 20 crore to support its festive marketing and advertising efforts.

The festive season — usually falling between late September and early October — is the time when brands go all guns blazing with advertising campaigns. Online furniture brand Pepperfry has tweaked its approach this time with two campaigns — one for the pre-festive phase and another for the actual festive season. How is it working for the brand?

Of seasons and age groups

With seasonality playing a big role, almost 66% of the year’s business for Pepperfry is generated between August and January. Usually, after Independence Day, the demand starts declining and does not revive until the festive season picks up in October. Kashyap Vadapalli, CMO, Pepperfry, says, “As we move from August to September, sales drop by 20-30%.” To energise demand in September and for a strong lead-in into the Diwali strategy, Pepperfry rolled out its Why wait for Diwali sale in late August.

The idea, he says, was to keep interest in the brand and category alive so that when Diwali arrives, “we have a head start”. It worked well for the brand. This year, for the first time in three-four years, the company witnessed a September that was bigger than August — which is a major sale period for Pepperfry, Vadapalli informs. “As compared to September 2017, business for the month in 2018 grew by 70-80%.”
For the actual festive season, Pepperfry has two target segments to address. Aside from its core audience of 35-45 year-olds, the focus is increasingly on consumers in their mid-20s to early 30s — a segment fast becoming important for Pepperfry to capture and retain.

A few years ago, categories such as beds, dining sets and wardrobes were most sought after on Pepperfry with consumers looking for quality and, more importantly, durability. Things have been changing over the past year, with other categories such as seating (including sofa sets and loungers), coffee tables and open display cases finding takers. The same pattern is being observed in the lamps and lighting category; products are now being bought as accent pieces for the living room rather than for their utilitarian form. The younger audience seeking new designs, trendiness and style is driving this change.

To keep these audiences hooked, Pepperfry is focussing on engagement, besides developing around 10 private labels — collectively contributing 50% to the business.

The overall festive season is set to run till 10-11 November. Pepperfry has gone all out with its Diwali toh sab ke liye hai campaign by leveraging TV nationwide, premium cinema halls across six cities, radio across five cities and OOH across three cities. The brand is also continuing its association with web series such as TVF Girliyapa’s Mr and Mrs, Dice Media’s What the Folks and Home Invasion (Miss Malini).

Leveraging Studio Pepperfry

In the offline environment, things get more interesting. Pepperfry has 37 experience studios in all, of which 12 studios are spread across Delhi-NCR and Bengaluru. “During this festive season, we are running events like comedy nights and improv nights at our experience stores. The aim is to speak to the younger audience which has a different style of engaging with brands,” Vadapalli adds.

Offline engagement is crucial for the brand; studios influence 30-35% of its business. This is because the opportunity for consumers to upgrade their purchases is found to be higher in the studios. The average studio order value is typically three times that of an online transaction. In the festive season, a studio’s influence may increase to 37-40%.

The company has earmarked a minimum of Rs 20 crore to support its festive marketing and advertising efforts. By the time the festivals wind up, the budget could go up to `25 crore since the company is also rolling out demand generation and performance marketing initiatives. “For October-November, we would like to see a 100% jump over August-September,” says a hopeful Vadapalli.

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