Online furniture makers bet on offline market

BENGALURU: Online furniture store Pepperfry is gearing up to expand its offline presence by launching a number of brick-and-mortar outlets over the next 12 months, following a similar push by rival Urban Ladder, which plans to launch its own experience centres and is on course to widen its offline distribution channels.

The move will help Pepperfry beat a slowdown in online sales, said co-founder and CEO Ambarish Murty.

Online retailers witnessed moderate growth last year as they brought down discounts and marketing spends. According to a January study by RedSeer Management Consulting Pvt Ltd, sales fell from $14 billion in the March quarter to about $13 billion each in the June and September quarters, before swelling to about $18 billion in the December quarter. This is in sharp contrast to 2015, when sales grew 17-27% every quarter.

Pepperfry, owned by Trendsutra Platform Services Pvt Ltd, will invest about $6 million this year to increase its store count from 14 to 50 by December.

Its nearest competitor Urban Ladder has launched a new brand identity and is on course to widen offline distribution channels beyond company-owned centres. It plans to launch at least three experience centres in Bengaluru, and is exploring partnerships with large format retail stores.