Kindly present your views on home furnishing market in India. How do you see this market will grow in next few years? Also state few numbers to quantify the same?
The demand for home furniture and furnishing is on an increasing trajectory. Changing consumer lifestyle, rapid urbanization, and increase in monthly household incomes are some of the major factors contributing to the growth. Widespread availability in Tier 2 and Tier 3 markets coupled with surging demand for modern furniture are aiding the industry to grow to its maximum potential within another 5 years. A recent study published by TechSci Research on India’s Furniture Markethighlights that the market is set to grow at a CAGR of about 25% during 2017-2019.
A closer look at the industry data reveals that home furniture segment, so far, is the largest contributor, closely followed by office and institutional segment such as hospitality, healthcare and so on. It is interesting to note that the average age of home buyer has dropped from 40 to 27 years. Today’s generation is more evolved and adapt to the modern lifestyle than its counterpart. With unique and individual preferences, this set of people are opting for modern furniture and flexible usage and hence, makes for an important category to the retailers. Having said that, the home furniture segment is anticipated to maintain its dominance in the years to come. All segments put together, the country’s furniture market is anticipated to grow at a rapid pace and cross a mark of $27 Billion by 2022.
Talking about the rental segment, a recent PWC study suggests that the shared economy in India is valued at $1.5bn with future projections of $10bn by 2030. The market is vast for more innovation and players to make renting a complete alternate to buying and furniture rental will be a mainstream category in another five years.
How do you come up with the idea of home furniture renting business? Presently, furniture renting business is very niche. According to you what are the factors propelling growth in this segment?
The concept of furniture rentalstruck to me way back when I was studying in Delhi University.The idea of establishing CityFurnish came through a series of personal experiences. From lack of budget-friendly furniture options available to below par experience with pop-up rental stores, the experience of using rented furniture in Holland during my summer stay incepted the seed. It occurred to me that, when moving places for a brief period, people might not prefer investing in cost-heavy possessions such as furniture due to various reasons including frequent mobility, lesser re-sale value of products and so on. That’s when I identified the problem and was able to connect the dots so I decided to bridge this gap by providing a platform where people can rather rent cost-effective, high quality furniture along with appliances and furnishing free of hassles.
The furniture rental segment has witnessed an increased reception in the past few years on account of increasing urbanization, changing lifestyle aspirations, rising income and easy availability of standardized furniture products among others As consumers get more options, the industry becomes a lucrative proposition and as a result, expands in terms of bothplayers and value.
What kind of furniture you are renting in terms of brands and prices? Do you also operate in luxury segment?
CityFurnish has in-house inventory to manufacture and design the furniture at our own facility in Jodhpur, which provide us tremendous advantage over our competitors, by means of controlling our quality and cost of the product. The furniture is produced by using high quality sheesham wood and are carved with beautiful designs. All the products delivered to the customers are as good as new as they make sure that they do not reuse the soft furniture.
The current range of portfolio includes Residential and Commercial range of furniture, a hospitality range customized for hotels and restaurants, and a designer residential range focused on economical and space saving urban designs. The packages are available at a minimum rental period of one month starting at just Rs 2300. Currently we are operationalacross three categories including residential, office and hospitality.
What is the slab of rent that customer has to pay to avail your services?
Our flexible furnishing packages are designed considering need of all type of requirements, be it student, expat, home owner or tenant, we believe in fulfilling their furnishing needs more efficiently, at their convenience. If any of our packages does not fulfil customer need, then in that case we make a package the way they want it. We do offer rent to own furniture and appliances packages, where customer can own products once a predefined rental tenure is over.Cityfurnish product and packages are available at a minimum rental period of three month, with 1BHK package starting at just Rs 2300.
Who do you see as your potential competition?
CityFurnish has competitors in both online and offline segment with offline market being unorganized and scattered, online competitors would include Furlenco,Rentomojo etc. The main difference between us and the competitors in the market would be the approach towards shared economy. Our focus it to provide superior service and products with complete furniture range in Solid Sheesham Wood, available in mint condition and make the customer experience overwhelming. Our Full Stack Model where we control the process of Manufacturing, Storing and Delivery for the customer enabling to provide an unmatched user experience and reducing friction for the customer. Best example for the same is the Delivery TAT which is less than 72 hours.