Rakesh Kaul, CEO and Whole Time Director, Somany Home Innovation Limited (SHIL) has said the Furniture brand Evok by Hindware aims to cross the three-digit store count mark in 2022, said
SHIL is the parent company of Evok and operates under segments such as consumer appliances, home retail solutions and furniture, and kitchen fittings business. Last year SHIL reported consolidated revenue from operations of Rs 1,775 crore.
Presently, Evok has 29 franchises and 2 standalone retail stores. By the end of this year, the brand plans to add 18 more franchise stores and take the count to 50 owing to demand from nuclear families, disposable incomes, and India's middle-class population.
"The business model for us is to be much leaner. And when you make a leaner business model, it's inevitable that you focus more on your competencies, which at this point is more on product and brand and giving experience to the consumers. So our focus would be more on expanding franchise stores than our own stores. We are focused on delivering profits by improving efficiency and lowering costs," he added.
Kaul said that the home innovation and the furniture business are poised for growth of around 25 to 30 percent on the back of product expansion, increased domestic manufacturing, a vast franchisee network, and an increasing rate range and width of the furniture. Evok's revenue for FY 2021-22 Q2 grew by 35 percent year-over-year.
Evok presently sells through its own website, franchise and retail stores, and online marketplaces such as Amazon, Pepperfry, and Flipkart. Going forward, the brand plans to focus more on its Direct to Consumer (D2C) strategy.
At the same time, we plan to expand across the major towns and reach out to more than 18,000 pin codes. The strategy of the franchise, our own stores, and Evok's website put together is a very formidable way forward for the business," he added.
Speaking about Evok's manufacturing capabilities, Kaul shared that the furniture retailer has successfully built a supply chain in India. Evok claims to have reduced its dependence on imports to 15 percent in comparison to 70 percent last year. With D2C we'll focus on experience, that is, faster deliveries, great installation, and innovative EMI schemes for customers.
"Due to the closure of ports and global manufacturing hubs, higher fuel costs, and labor shortages, we as other players also realized we couldn't be dependent on China and other markets for the products," he said adding "We have developed a very strong network of almost 15 captive consumer vendors for contract manufacturing. And the majority of them are MSMEs."
"We are working with our key Indian suppliers and helping them build the infrastructure for manufacturing the required range of furniture. We believe that our thrust towards Vocal for Local and Make in India along with e-commerce and franchisee growth will give a further boost to the Indian manufacturing sector" said Kaul.