In recent years, the rapidly growing furniture sector has attracted much attention. Online furniture and home sales will grow at a 39 percent CAGR over the next five years. As we can see, the sector is heavily driven by niche products. The average selling price of verticals for furniture is 10x more than horizontals, and the average for decor is 2x as high. This shows the different target customers. This indicates that consumers are looking for specific and unique products, which allows for lots of innovation by start-ups.
The Decor Kart, a home decor D2C company founded in 2015, has built a solid furniture line with over 200 suppliers from five countries (India, China, Czechoslovakia, and Italy) and plans to open 2 or 3 stores annually. The company places a high priority on customer service and offers a variety of home decor products, relying on its experience in the category.
We place great importance on customer service. Our support and WhatsApp numbers can be found on our website for any complaint or question. Customers are now able to remember our support associates’ names. This trust level has made it easier for users to test a new brand,” Nihal Kalra, Co-founder and CEO of The Decor Kart.
Our prices range from Rs 250 for kitchenware to Rs 60,000 to Rs 70,000 for large mirrors, furniture, and hand-painted oil paintings.
The company, which began as B2B (Business to business), decided collectively to abandon the model in favor of selling directly to consumers (D2C). The company realized as a natural progression that opening stores positively impacted trust. “Web-influenced in-store sales and store-influenced online sales.” The company stated that customers could test out their products in-store and order them from our website anytime.
The split of revenue between online and offline for the company is currently 70:30, with 70 percent being online. The brand currently has four stores.
Understanding Home Decor Market
Online channels have seen massive growth in home decor, traditionally run by unorganized players. The online furniture category is expected to see a 3X increase in shoppers over the next five-year period, with a 1.8x increase in spending per customer. Home decor will experience rapid growth as the D2C market is booming and investors are interested in D2C.
It is great to see that the space is getting so much attention. The increased competition is a growth in the market. “More players and a larger percentage of our population are involved in the industry, leading to increased jobs, economic growth, and a general increase in awareness of the importance of the home sector,” Kalra stated.
Kalra’s strategy for the company is to continue providing unique and uncommon homewares. You can give them a quality experience, whether in the form of a product, excellent customer service, or even our stores. If we keep up this level of service, we will not have to worry about the competition.
The company has been successful in the D2C market and is now solely focused on serving customers. However, they are also considering the B2B segment again, given the numerous queries that retailers send them regularly asking for their product portfolio.
The brand also aims to improve the customer experience and its product portfolio. The brand will also expand its retail footprint and launch its international website, starting with the UAE.
In addition to scaling up and improving its efficiency, the brand is also working on introducing AR to its website. Live commerce and live design consultations for any design questions will be coming soon.
Kalra said, “We don’t want to try to scale up before we are ready. We just want to grow in a sustainable way.”
What is a retailer?
A retailer is an individual or business that sells products or services directly to the consumer. Retailers are essential in closing the gap between wholesalers, manufacturers, and consumers. Retailers are intermediaries who offer a variety of products and services that meet the needs and preferences of consumers.
The importance of retail in the business landscape
Retailers are essential in the market for many reasons. They offer a wide range of products in one place, which is convenient for consumers. Retailers provide a platform for consumers to locate and purchase products, saving time and effort quickly. Retailers also contribute to the economy’s growth by creating employment and bringing in tax revenues and sales.
Retailer Evolution: The Past and Present
Over the years, retailing has changed dramatically. Retailing used to be dominated by small shops in the local community that served immediate needs. Retailing has become a diverse and complex industry due to technological advancements, consumer changes, and globalization. The advent of digital technology and e-commerce has transformed retailing.
Critical differences between Retailer and Wholesaler
Understanding the difference between wholesalers and retailers is essential. Both play an essential role in the supply chain but are distinct. Retailers focus on providing various shopping experiences and selling directly to the consumer. On the other hand, wholesalers sell their products in bulk to retailers, acting as an intermediary between manufacturers and retailers.
Retailers are businesses or individuals who sell products or services to consumers directly. Retailers are the last point of contact for the supply chain. They display, promote, and provide customer service for various products and services.
Retailers have the following characteristics:
- Individual Customers: Selling
- Offer smaller quantities of units.
- Marketing and promotional efforts are essential to attract customers
- Focus on creating a positive customer experience.
Wholesalers, or distributors, are companies and individuals who purchase products from manufacturers in bulk, then sell them at a discount to retailers. The wholesaler is responsible for storing and distributing products to retailers efficiently so that retailers can maintain an optimal inventory level.
Wholesalers have the following characteristics:
- Direct selling to retailers is preferred to direct sales to consumers.
- Bulk purchases and larger quantities
- Offer lower prices based on volume discounts.
- Focus on efficient logistics and distribution of goods.
Interactions Between Retailers and Wholesalers
Relationships between wholesalers and retailers are integral to supply chains. Wholesalers rely on retailers to provide products, and retailers rely on wholesalers to sell them to customers. They are involved in:
- Wholesalers place orders based on the forecasted demand and stock requirements of retailers.
- Wholesalers provide retailers with information about products, promotional materials, and other resources necessary to sell the product effectively.
- Wholesalers and retailers negotiate for better prices, payment terms, delivery schedules, etc.
- Wholesalers monitor retailers’ performance and provide support to ensure the supply chain runs smoothly.
The retail industry is part of a complex supply chain that includes manufacturers, retailers, and distributors. Distributors facilitate the storage and transportation of goods, while retailers purchase products directly from manufacturers and distributors. Retailers work closely with distributors and manufacturers to ensure that products are available to satisfy consumer demand.
Retailers provide consumers with convenience and accessibility. Retailers are one-stop shops where consumers can shop for various products and services. Retailers provide consumers with easily accessible physical or online areas that allow them to meet their shopping needs. Retailers enhance consumers’ shopping experiences by curating diverse products and providing personalized services.
Types of Retailers
- Store Retailers
- Department Stores – Offering a Variety of Products Categories
- Department stores are retail outlets that sell a wide range of products in multiple categories. The convenience of shopping under one roof is a big draw for consumers. Many department stores have sections dedicated to clothing, accessories, and home goods. They also offer electronics.
- Specialty Stores – Focus on Niche Products & Expertise
- Specialty shops are retailers who specialize in specific product categories or target niche markets. Specialty stores offer a carefully curated product selection emphasizing expertise, quality, and a unique experience. Some examples include specialty stores specializing in organic foods, luxury fashion, or hobbies such as photography or outdoor gear.
- Hypermarkets and Supermarkets: Meeting Consumer Needs Everyday
- Supermarkets and Hypermarkets are retail shops that offer a variety of products to consumers, including groceries, household goods, and general merchandise. The stores cater to the needs of everyday consumers, providing a convenient one-stop shop. Supermarkets range from small to large, while hypermarkets carry various goods.
- Convenience stores: Easy and Quick Shopping for Immediate Needs
- Convenience shops are small retail outlets that sell a limited selection of essentials for everyday life. Convenience stores are often open 24/7 and designed to simplify shopping. Convenience shops are known for the accessibility and availability of their products, such as snacks and beverages, toiletries, and basic groceries.
- Discount Shops – Bargains and Affordable Prices
- Discount stores offer their products at lower prices than traditional retail stores. The stores attract customers by offering affordable products and great bargains. Discount stores can carry a variety of products, or they may specialize in specific categories, such as home goods, electronics, clothing, or other household items.
- Ecommerce Retailers: Online Shopping and Digital Markets
- E-commerce retailers are primarily digital and provide a platform where consumers can shop online. They provide convenience, a wide range of products, and the option to shop anytime. E-commerce retailers can be independent online shops, marketplace platforms, or the online presence of traditional brick-and-mortar retailers.
- Non-Store Retailers:
- Direct Selling: Personalized Sales Approach
- Direct selling is selling directly to consumers by individual sales representatives. This allows for personal interactions and demonstrations that often occur in the consumer’s home or during home parties.
- Telemarketing – Engaging customers via phone
- Telemarketing is an alternative form of retailing, which involves selling goods or services via the telephone. Telemarketers call potential customers to present their product offerings and take orders.
- Direct response marketing: infomercials and mail order
- Direct response marketing is a form of advertising that encourages consumers to act immediately, usually through catalogs or infomercials. Direct response marketing allows consumers to place orders by calling designated numbers or mailing in response forms.
- Online Retailers: Virtual Storefronts & Digital Shopping Experiences
- Online retailers use virtual storefronts to provide consumers with a digital platform to browse, select and buy products. Online retailers offer a variety of products, personalized suggestions, and convenient shipping options.
- Vending machines are automated machines that provide customers with goods like snacks, drinks, tickets, etc., after they insert cash or credit cards.
- Kiosk retailing: These small booths are located in areas with high traffic, such as airports and shopping malls. Usually, they sell products like accessories, personalized items, and specialty products.
- Hybrid Retailers
- Warehouse clubs: Customers must purchase memberships to access a range of products at reduced prices. Costco and Sam’s Club are two examples.
- Pop-Up Stores: These temporary retail establishments sell any merchandise. These temporary retail establishments are primarily used to test product markets for seasonal sales or event marketing.
- Etailers: These businesses are primarily involved in retailing over the Internet. These businesses can operate in a variety of ways. They range from an online-only presence, such as Amazon, to the online arm of brick-and-mortar stores.
- Catalog retailers: These retail stores send catalogs to customers when they place orders by phone, mail, or online. IKEA is an example of a company that has innovated, while traditional companies such as L.L.Bean and Lands’ End are examples.