Good Earth eyes solution-based sales for growth
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Mumbai: Good Earth, one of India’s top décor labels, is consolidating its offerings as it moves towards solution-based sales rather than just selling products by tighter editing of its merchandise and also expanding into new verticals of furnishings and interiors styling, said a top company executive.
In September, the brand had introduced its first range of wallpapers in collaboration with Asian Paints Ltd’s Nilaya. “This is our first step as we move towards offering full interiors services,” said Simran Lal, chief executive officer, Good Earth while sharing that the company will work closely with interior designers to offer a lifestyle solution which will include furnishings, wall papers, textiles and interiors styling.
Currently, there are nine Good Earth retail stores in India and the company does not plan to expand its retail footprint. However, it will open two salons one in Delhi and one in Mumbai to showcase its interior styling offerings, said Lal adding that the step is in line with the house proud trend of people who have look at their homes as an expression of themselves. “The gap is there in the global Indian way of living. It’s not been catered to by anyone in the luxury way,” said Lal whose mother founded the company.
What works in Lal’s favour is the company’s network of artisans, art and clientele. “There are many ways to add value and this could be a good extension of what they do,” said Neelesh Hundekari, partner in the consumer and retail practice and is an expert in the lifestyle and luxury industries at A.T. Kearney Ltd while cautioning that scalability could be an issue in this vertical.
Good Earth, which completes 20 years this year, also did a brand audit earlier this year and some of these changes initiated have come as a result of growth drivers identified by the audit, said Lal while explaining that its customers have been pushing the company to offer these services.
Lal, however, did not disclose the name of the company that did the brand audit.
The other recommendations from the audit include getting younger customers into its fold and strengthening its gifting offering as a dedicated vertical by offering gifting solutions across customer needs and occasions both in India and internationally, both of which it is working on, said Lal.
The company is in the middle of relaunching its clothing brand, adding yoga and wellness to its offering as it looks at the younger consumer.
Last year it launched its website and is now shipping to 40 countries worldwide. “Online contributes to 10% of our revenue and will double to 20% in the next three years,” said Lal, who is looking at international market and online as areas of growth.
The company already has two stores in Turkey and has experimented with a pop-up for gifts in Beijing and Shanghai with a local retail partner. “We are looking at international expansion in the UK, China, Australia and the Middle East,” said Lal who is open to different types of partnerships and operating models for expansion.
Good Earth closed the financial year 2016 with revenue of Rs.150 crore and will grow to have a topline of upto Rs.200 crore in three years, said Lal adding that the company is doing a lot of different things for growth which doesn’t require opening many stores.