Pepperfry sees 40-50% reduction in FY18 loss, to double offline stores1 min read . Updated: 09 May 2018, 12:10 AM IST
Pepperfry expects to more than double its offline presence this year and expand house brands into new categories as the online furniture retailer looks to increase sales by 30% or more
Bengaluru: Pepperfry (Trendsutra Platform Services Pvt. Ltd) expects to more than double its offline presence this year and expand house brands into new categories as the online furniture retailer looks to increase sales by 30% or more.
Peppery also expects to have cut losses by 40-50% in 2017-18.
“In FY17, we reduced burn by more (than 25%) and the rate of growth will be (about 30%), if not higher, and this year hopefully it will be the same," said Ambareesh Murty, co-founder and chief executive of Pepperfry.
Pre-marketing costs, the company is already at breakeven, he added.
The company’s loss narrowed to Rs128.8 crore in 2016-17 from Rs154.9 crore a year earlier, according to its filing with the Registrar of Companies.
In comparison, its closest competitor, Urban Ladder Home Décor Solutions Pvt. Ltd, reduced its losses by more than 14% to Rs156 crore in 2016-17.
Pepperfry is also looking at stepping up its house brand and geographical expansion plans.
The company already has 10 house brands in various categories, ranging from contemporary and colonial solid wood furniture—with Woodsworth and Amberville—to modular kitchens and wardrobes under Mangiamo and Primorati, respectively. In February, Pepperfry also launched a house brand called Clouddio, under which it sells mattresses.
This year the focus will be on extending house brands into new spaces, especially in furnishing, co-founder Ashish Shah said.
Currently, around 20% of Pepperfry’s total business comes from the sale of non-furniture products, which Murty says took off only last April-May.
Within the non-furniture market, lamps and lighting is the largest category, followed by mattresses, dining and baking and hardware and electricals.
Pepperfry’s focus will be on soft and hard décor, including products such as lamps, bedsheets, carpets, rugs and handloom or handwoven furnishing.
House brands already account for half of Pepperfry’s business and although it makes about 10% more in margins on these, the company is not looking at creating new ones at the moment.
“Private brand contribution is half our business today and it will remain half. We’ve committed to variety and if we become only about private brands then we are again going away from our variety proposition," Murty said.
The company is also looking at expanding its footprint into Vizag, Coimbatore, Nagpur, Guwahati, Siliguri and Imphal.
It currently runs 29 Studio Pepperfrys, offline experience stores, across 16 cities and is targeting a network of 70 stores by next March.