Chumbak to double store count by end of 2017
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New Delhi: Lifestyle brand Chumbak Design Pvt. Ltd is hoping to double the number of its stand-alone outlets by the end of 2017, taking the store count to 30 from 16.
Founded in 2010, Chumbak was operating three stand-alone stores and 15-20 kiosks until January 2015. “We have shut down the kiosks and are focusing on larger format stores. We currently have 16 stores in nine cities,” said Vivek Prabhakar, co-founder and chief executive officer at Chumbak, adding that the company is targeting Bangalore, Mumbai, Pune, Hyderabad, Chennai and National Capital Region, among others.
Chumbak currently sells accessories, home décor items and apparels, priced between Rs245 and Rs40,000, through its exclusive stores and online marketplaces, including Flipkart, Myntra, Jabong and Amazon. Currently, 70% of Chumbak’s sales come from its 16 offline stores, while 30% come from the online channels.
Prabhakar added that the idea behind this kind of expansion is to position Chumbak as a design-led lifestyle brand. “We don’t want people to consider Chumbak a souvenir brand. The idea behind introducing apparel was to position Chumbak in a different way,” he said, declining to comment on the revenues of the company.
Chumbak introduced a separate line of clothing in October 2015. Prior to that, the company was focused on selling magnets, accessories and home décor products. Chumbak competes with Happily Unmarried Marketing Pvt. Ltd, e-commerce portal Bewakoof.com and few other regional players in the unorganized market.
The focus of the company now, Prabhakar said, is home décor and apparel. “We are hoping that apparel and home décor contribute 80-85% of sales in the next few years. We are trying to accomplish that very soon,” he said.
Going forward, the company is also planning to raise money to further strengthen its presence in the country. “We are in talks with a few investors,” said Prabhakar, refusing to disclose the amount of investment. In 2012, Chumbak had raised $2 million from Seedfund India and had another round of investment from venture capital fund Matrix Partners in 2014.
According to a March survey by consulting firm AT Kearney, the Indian fashion and lifestyle market is expected to touch Rs3,94,000 crore over the next five years, growing at a compounded annual growth rate (CAGR) of 12%. Currently, the market is estimated at Rs2,21,000 crore.