New Business Segments- Furniture

8/18/2019 New Business Segments- Furniture

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CE v7.0

New Business Segments and Approach for Urban

Ladder

VIMAL GARG

Bangalore, 26th July 2015


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Summary

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New Business Segments

• Assuming that the focus for the comany is on more than to line than rofits, creating high value !usiness segments is

the "ey• Current target segment of the comany is uer mi##le class$affluent ur!an househol#s %ho nee# #ifferentiate#

ro#ucts, suerior customer service

• &o#ular "itchen an# flooring can !e ne% !usiness segments targete# at e'isting customer segment

• Both categories are largely unorgani(e# an# hence a nee# of rofessionalism an# uni)ue #esigns %ith suerior !uyingan# urchase e'erience is a otential nee#

• *aying caacity for right ro#uct + service e'ists, hence mar"et rovi#es e'citing oortunities

• &aor !usiness segment e'clu#e# from entry is Bathroom segment %hich is attracts cometition from esta!lishe#

layers such as "ohler, cera, aguar etc. an# rovi#es limite# ro#uct #esigns oortunities

New Business Segments

• Assuming that the focus for the comany is on more than to line than rofits, creating high value !usiness segments is

the "ey• Current target segment of the comany is uer mi##le class$affluent ur!an househol#s %ho nee# #ifferentiate#

ro#ucts, suerior customer service

• &o#ular "itchen an# flooring can !e ne% !usiness segments targete# at e'isting customer segment

• Both categories are largely unorgani(e# an# hence a nee# of rofessionalism an# uni)ue #esigns %ith suerior !uyingan# urchase e'erience is a otential nee#

• *aying caacity for right ro#uct + service e'ists, hence mar"et rovi#es e'citing oortunities

• &aor !usiness segment e'clu#e# from entry is Bathroom segment %hich is attracts cometition from esta!lishe#

layers such as "ohler, cera, aguar etc. an# rovi#es limite# ro#uct #esigns oortunities

Entry Model & Strategy

• Create su!-!ran# un#er r!an /a##er for !un#le# ro#uct an# service offerings

• ince these offerings %ill re)uires great imetus on installation an# after sales service, #ifferentiate# !ran#e# strategy isre)uire#

• Both segments allo%s leveraging of internal synergies an# !uil#ing common caa!ilities such as suerior materialrocurement, %oo# rocessing an# customi(ation, !uil#ing team of installation rofessionals

• Both segments can !e #eveloe# in-house %ithout much significant a##itional investment

• uggeste# mo#el of in!oun# logistics is comlete in-house solution %hich %oul# re)uire one time investments !ut alsoallo%ing !enefits to e'isting categories, !etter margins, imrove# )uality control, #elivery efficiency an# customersatisfaction

• ut!oun# logistics %ill re)uire investments in #e-centrali(e# infrastructure an# team, most of %hich %ill furtherstrengthen current logistics caa!ilities

• echnology shoul# !e leverage# to rovi#e customi(ation an# at-home shoing e'erience to customers

Entry Model & Strategy

• Create su!-!ran# un#er r!an /a##er for !un#le# ro#uct an# service offerings

• ince these offerings %ill re)uires great imetus on installation an# after sales service, #ifferentiate# !ran#e# strategy isre)uire#

• Both segments allo%s leveraging of internal synergies an# !uil#ing common caa!ilities such as suerior materialrocurement, %oo# rocessing an# customi(ation, !uil#ing team of installation rofessionals

• Both segments can !e #eveloe# in-house %ithout much significant a##itional investment

• uggeste# mo#el of in!oun# logistics is comlete in-house solution %hich %oul# re)uire one time investments !ut alsoallo%ing !enefits to e'isting categories, !etter margins, imrove# )uality control, #elivery efficiency an# customersatisfaction

• ut!oun# logistics %ill re)uire investments in #e-centrali(e# infrastructure an# team, most of %hich %ill furtherstrengthen current logistics caa!ilities

• echnology shoul# !e leverage# to rovi#e customi(ation an# at-home shoing e'erience to customers


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3

Objective for Urban Ladder is to become India’s argest onine destination for homefurnishing by providing distinctive products and superior customer e!perience

Key ase!ts

Mar"et S!enario

• 3n#ian furnishing mar"et is 420!n mar"et %ithhome furnishing !eing 65 of it. nly 10-15mar"et of %hich is organi(e#

• nline home furnishing mar"et e'ecte# togro% at healthy rate of 0-0

• *rivate la!el an# furniture is a high margin

category

Imli!ations #or $r%an Ladder

Business %'e!ti(es

• Need to (enture

into new

%usiness

segments and!ategories #or

ne)t le(el

re(enue growt*

• Maintain t*e

same standards

o# rodu!t

+uality and

!ustomere)erien!e

• 3ncreasing customers are loo"ing at one stosolution for home ro#ucts

• As reeat urchases increase nee# fortargeting same set of customers increases

• 3mortant for r!an /a##er to gain significantmar"et share in other categories as the sace%ill get increasingly cometitive going for%ar#

• 8enture into ne% !usiness segments !yrovi#ing value a##e# solutions to e'istingtarget segment

• 9uic"ly e'an# %i#e an# #ee for lo%ercustomer attrition

• :evelo su!-!ran#s as ilot roects to test;%ill it %or"


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,

/iving :ining Be#room >i#sut#oor+

?ome officeBathroom >itchen

-ur niture

ofasChairsa!lestorage

:ining setsChairsa!lestorageBar nits

Be#storage +

Accessories

Be#s

a!les +Chairstorage%ingsCri!s etc.

tu#y ta!le,chairsut#oor sets@a(e!o

>itchen 3slan#s,trolley, ta!les,

rac" etc.

t*

ers

:ecor /ightingugs&irrorshelves +in#o%sCurtains

:innerare

:ecor &attresses

*illo%s

:ecor /ighting&attresses

ugs

:ecor /ightingm!rellas,@rills@ar#en

Accessories

@eysers@rooming

Aliances

&irrorsBath Accessories

torageCoo"%are

Aliances

.omeimro(emen

t

looring looring

Bathroom fi'tures +fittings

anitary %arelooring + iles

>itchen i'tures

End/

Endsolution

s

/iving oomroects

:iningroom

roects

Be#roomroects

>i#s roomroects

Bathroom solutions&o#ular "itchen

>itchen re-mo#elling

1

2

"oing #ide in $itchen and #ooden %ooring can be attractive opportunities withine!isting target segment

irst line of gro%th target segments D going %i#e aroach

econ# line of gro%th segment - !uil# #esign caa!ilities

E'clu#e# from current focus as they shoul# !e a art of gro%inge'isting categories, !athroom segment is highly cometitive an#currently un-relate# to oerational synergies


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End to End Solutions .ome Imro(ement

Modular Kit!*ens -looring 0.ardwood1 Laminate1 Vinyl

(erall Mar"et

&o#ular "itchen is 41!n mar"et in 3n#ia&ar"et is largely unorgani(e# 70-75F rovi#e#!y carenters ma"ing custom #esigns as erre)uirements of househol#s

looring mar"et in 3n#ia has evolve# from ceramican# stone to %oo#.&ar"et is gro%ing at 0-5&ar"et is largely un-organi(e# 70-75F

ometition@o#re, lee", @lima etc. inclu#ing fe%

international comanies

Alternate otions such as &ar!le, granite an# ceramicetc. an# fe% international + #omestic !ran#s such as

trore 772, ar"ett etc.

E)e!ted o# 4ro'e!ts

otal 4G0mn househol# in 3n#ia5 target segment Hmn househol#s10 ne%$relacements I 0.mnrgani(e# 3n#ustryH25I 0.1mn

otal 4G0mn househol# in 3n#ia5 target segment Hmn househol#s5 ne%$relacements I 0.2mnrgani(e# 3n#ustryH25I 0.05mn

A(erage 5i!"et si6e s. 2 H5 la"h s. 500-G00 er s)ft $1000 s)ft I 5la"h H Gla"h

$r%an Ladder oortunity 5 mar"et share in first year5000 la"h I 150cr

5 mar"et share in first year 2500 6 la"h I 150cr

ustomer 4roosition

*rovi#ing solutions of functional racticality,#esign an# aeal

Effective sace management *rovi#e %arranties an# easy relacement

*rovi#e easy an# rofessional installation otions 9uality, #esigns an# convenience is a !ig concern 8ariety of otions, styles an# ugra#es offere# ni)ue roosition of allo%ing customers to sho

flooring online matching their current scheme *rovi#e %arranties an# floor care e#ucation

&oduar 'itchen and fooring are argey sti unorgani(ed and there is a need for high)uaity* attractive designs and superior customer service at affordabe prices


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+reate Sub,Brands under Urban Ladder to provide differentiated and dedicated mar'eting- promotion capabiity and awareness among construction industry professionas

End to End Solutions .ome Imro(ement

Modular Kit!*ens -looring

Entry Strategy

/aunch a su!-!ran# un#er r!an la##er rovi#ing#ifferentiate# solutions %ith suerior #esign an#)uality

ie u %ith architects, !uil#ers an# interior#esigners an# housing comanies

/aunch a su!-!ran# un#er r!an la##errovi#ing flooring otions un#er har#%oo#,laminate an# 8inyl

arget selecte# first set of customers an# createull for the ro#uct - lo% inventory an# oeratingcosts

ie u %ith architects, !uil#ers an# interior#esigners an# housing comanies

5arget Segment #or$r%an Ladder

ier 1 an# ier 2 citieser &i##les class$Affluent

ier 1 an# ier 2 citieser &i##les class$Affluent

*allenges ?igh rices an# lo% relacement #eman#3nvestments in high )uality an# see#y installationrocess

5e!*nology&o!ile a for customi(ing "itchen as er nee#s an#)uotes

&o!ile a for in home measurement an# )uotes

In%ound logisti!s 3nvest in manufacturing services for creating high)uality customi(e# finishe# ro#ucts

Channeli(e !ul" sourcing from #omestic an#international layers

ut%ound Logisti!s 3nvest in high )uality installation services 3nvest in high )uality installation services

A#ter Sales*rovi#e relia!le %arranty, relacement an# serviceotions

*rovi#e e#ucation on surface care an# treatment


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K ie-us %ith housing, architects an# !uil#ers, romote flooring an#mo#ular "itchens

K Aeal to the customer nee#s Daesthetics, hassle free, greatservice

K *rovi#e sho at home solutions, #emo servicesK :ifferentiate# #esigns an# otions in ro#uct

K hoers are more informe# an# sohisticate# an# more

#eman#ing in terms of customi(ationK ffer uni)ue com!inations of ro#ucts #esigns an# solutions

K emer the o%er of the imme#iate customer !y aealing #irectlyto the en# customer

K Create !ran# a%areness an# ull for ro#uct

K uerior an# relia!le customer service is the "ey

K Both mo#ular "itchen an# flooring re)uires e'tremely rofessionalservice %hich is )uic", neat an# efficient

Urban Ladder strategy shoud be based on product differentiation and superior end toend customer service

9i##erentiation 4illars Key Re!ommendations

Best ro#uct #esign an# )uality:

Bran# A%areness

3

Customi(ation

,

&ar"eting;

Customer service

2


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CE v7.0

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Documents

New Business Segments- Furniture