Is Online Furniture Store Profitable in India?
Online furniture businesses can be highly profitable in India due to labor, materials, and growing online sales. The furniture business in India is projected to reach $61 million by 2024. Factors like increased broadband connectivity, smartphones, and the rise of the digital economy contribute to this growth.
Steps to Excel in the Online Furniture Market
- Start with market research and niche identification.
- Understand customer preferences and identify your unique selling proposition.
- Check market share of different furniture items.
Understanding Profit Margins in the Furniture Business
The category has margins around 40-60%, with the industry average hovering around 48%. Costs depend on store size and inventory expenses.
Driving Shift to Online Selling
Innovations made possible by ecommerce platforms, like segmented products and using AR/VR, are driving the shift to online. Retailers offer personalized solutions based on consumer preferences.
Case Study – Pepperfry: Leading Online Furniture in India
Pepperfry offers quality products at affordable prices, leading online furniture in India with a focus on innovation and service. As of 2020, Pepperfry is worth $500 million. The name was inspired by the ‘peepal’ tree, symbolizing strength.
Enhancing Profit Margins and Leveraging eCommerce Marketplaces
- If profit margin is lower than average, improve by: reducing costs, focusing on higher-margin items, and testing pricing strategies.
- An eCommerce marketplace lets retailers sell products to a large base, earning commissions and from featured listings. Online platforms handle everything for sellers, crucial in the unorganized furniture market.