Our distributor network is around 187, poised to increase the channel width dramatically in the coming fiscal: Madhavan
In an exclusive interview with K. Madhavan, MD, Peps Industries highlights growing potential in home furnishing market.BY Shipra Srivastava | March 02, 2017 | comments ( 0 ) |
How do you see the market of home furnishing growing in India? How do you evaluate this market in terms of numbers?
Every day, consumer dynamics is changing rapidly. There is a steep increase in the disposable income.Tours and travel is also in a growth upbeat. The trend of growth in the hospitality segment can also be seen. Furthermore, the textile industry which plays a vital role in driving home furnishing is also in an ascending mode. Though in the last few years the home furnishing industry growth was poor, it was reported by the "IHFMF & O" that the future is bright and by 2018 the forecast growth would be around 7/8% CAGR.
History of the company and profile, number of stores and cities in which they exist. Also, the total turnover company and growth rate over the past few years. What is your current market share and what is the future market share you are targeting?
The Indian mattress industry is highly fragmented; only in the early 60's efforts went into converting the hitherto cotton stuffed home made mattresses to be replaced by mechanised coco fibre and polyurethane mattresses in our country. For the last 5 to 6 decades, the bedding industry was ruled by the coco fibre, Pu foam & cotton. Of course, there is a gradual fall of demand for home made cotton mattresses. It is to be noted that all over the world, 77% of the population use metal spring mattresses, both in developed and developing countries, but for India, even though they are engineered products that are durable and consistent in quality.
Mattresses, per say, occupy the last place in the list of most preferred consumer durable and the product's interaction with the consumers is also least. Additionally, brands have not come forward to educate the consumers on the importance of a good night's sleep.Though there are a good amount of developments in products and research studies have been conducted in the field of healthy sleep abroad, Indian consumers were satisfied with conventional mattresses.
It is at this juncture that the three founder partners who have a cumulative experience of almost 90 years in the Indian bedding industry, stumbled on a near-to-death establishment a decade ago and in association with an American brand decided to manufacture metal spring mattresses at Coimbatore, the Manchester of Indian textile industry, in the mid 2000s. They had a vision that the consumerism driven Indian market with surplus disposable income and a reasonably good growth in hospitality, tours and travels will certainly embrace the trendy international sleep comfort almost like the automotive industry in India.
It was in 2005-2006, while there was only one spring mattresses company some where in North India, the team launched PEPS, the spring mattress brand in association with "Restonic" of M/s Restonic Corporation USA. Over a period of 10 years they have established themselves as the India's top selling spring mattress brand with a market share of over 56% recording a CAGR growth rate of around 33%.
The purpose driven team had not only established themselves in the segment but they have metamorphosed the mattress industry in the country. Till date there are more than a dozen brands of inner spring mattress companies in our country. Many big players whose core identity was the conventional mattress have drifted strongly into promoting spring mattresses.
What is your reach in terms of the total number of outlets and cities?
"Our current channel strength is that of a 4000 member dealer network spread across India, with 140 company owned and franchise based "Great Sleep Stores" - a concept of creating a bedroom ambience to focus on the personalized buying of a mattress after experiencing its feel. Our distributor network is around 187, poised to increase the channel width dramatically in the coming fiscal."
How many footfalls do you get each month? How many of your stores are franchise stores? What kind of franchisees do you look for?
Our retail brand, GSS ("Great Sleep Stores") is an extensive retail display centre; the entire plethora of our product portfolio is displayed in an extensively created ambience for the customers to feel the product and then choose what they like. We firmly believe that a mattress is an investment and something that is personalized like your trousers or suits. You have to choose a product by its feel and not through catalogues.
We invite partners who are interested in investing on premises & capable of running the trade with soft assistance from our end in branding,product knowledge & other things.
24 Nov 2015, Hotel Pullman, Aerocity, New Delhi.
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