In India, a land where tradition and modernity collide with every sunrise, a quiet revolution is reshaping the furniture industry. For decades, the Indian furniture market has been synonymous with local craftsmanship and heritage brands, steeped in history. But, this landscape is gradually transforming to become a vibrant playground for global luxury brands.
International names such as Poltrona Frau, Pottery Barn and IKEA have introduced their design philosophies and craftsmanship to the Indian market. The $20-billion Indian furniture market—the fourth-largest globally—is expected to see a CAGR (compound annual growth rate) of 14% to reach $34 billion by 2028, according to data from Deloitte. However, it is worth noting that a significant portion of this market remains unorganised. The organised sector currently accounts for just 21% (around $4 billion) of the market. But its share is expected to more than double to $8.1 billion by 2028. This offers a substantial opportunity for brands to scale and increase market penetration, driving the growth of branded furniture.
The Global Invasion
Nicola Coropulis, CEO of Poltrona Frau, has been busy. On a recent visit to India when he met Business Today, his time was taken up by visits to the company’s flagship store in Mumbai, and meeting distributors from across the country. Poltrona is known to partner with famous designers and architects, and has a presence in over 100 countries. In India, the company opened its first store in Mumbai in 2010, and has since collaborated with local talent to craft its iconic array of home décor.
“India is a land of immense potential,” Coropulis tells Business Today. He goes on to say that there is more to the Poltrona-India relationship than simply selling furniture. “It’s about introducing a new level of luxury and experience,” he says. Coropulis points out that the kind of luxury Poltrona provides is something the market lacks. “When you buy a Ferrari, you’re not just buying a car. Similarly, when you buy a Rolex, you’re not just spending a lot of money on a watch. What you are investing in is a piece of history. When people enter Poltrona’s store, they are here not to buy any kind of furniture. You’re talking about a piece of history and craftsmanship,” Coropulis explains.
Poltrona entered India via a 50:50 joint venture with the Tata group and set up its first business unit in Mumbai. After FDI norms were eased, it bought Tata’s stake in 2016. The India unit, which posted revenue of Rs 90 crore for calendar year 2023, has since 2016 expanded to Surat, Ahmedabad, Hyderabad, Bengaluru and New Delhi using the dealership model. It plans to expand to Kolkata, Indore, Coimbatore, Chennai, and Chandigarh over the next few years.
As Coropulis says, Poltrona’s design philosophy uniquely aligns with India. The company’s aesthetics may be firmly within the modernist style, yet this modernism is married seamlessly with tradition. For instance, the company is known in the industry as a master of leather, it gives its furniture their trademark softness, durability, and natural beauty. But Poltrona also complements this by adding premium materials such as fine wood, metals, and fabric. “Our aesthetics feature clean lines, harmonious proportions, and understated sophistication, making them suitable for both classic and contemporary interiors,” he says.
Similarly, Pottery Barn, the San Francisco-based furniture and home décor brand, entered India in mid-2022 and within two years has already made its presence felt here. Earlier this year, it roped in Bollywood actor Deepika Padukone as its brand ambassador to showcase its timeless home furnishings collection.
Swedish furniture giant IKEA is not far behind either. It is gearing up for its next phase of investment in India, following the full utilisation of its initial commitment of Rs 10,500 crore. The company opened its first store in Hyderabad in August 2018 and is presently expanding its footprint in the Delhi-NCR region. The company plans to open stores in Gurugram and Noida by 2025. Currently, it operates in Hyderabad, Mumbai, and Bengaluru.
While imports currently account for less than 10% of the Indian furniture market, they have been growing rapidly in recent years, and the potential for high-end/luxury furniture imports is particularly high, say experts.
The Indian Response
While foreign furniture companies are making their mark in India, seeing the country’s burgeoning middle class as a lucrative market, their Indian peers are not far behind. Dev Sarkar, Senior Vice President & Global Head of Consumer Business, Interio, Godrej & Boyce, says that for companies like Godrej—that has a legacy of over 127 years—competition only makes it think out of the box and innovate.
Unlike Poltrona, Godrej caters to a wider market, which includes both the premium as well as the economy segment. Sarkar understands the drive towards premiumisation in the Indian furniture market and consequently, emphasises that the company made a strategic decision to bifurcate the segments. “Normally, premium products from us are available in the store. There too, in some ultra-premium markets, these products are showcased differently. Where the economy segment is concerned, it is mostly sold through our distribution partners,” he says.
As Sarkar explains, Godrej Interio has conducted extensive research in the past year to gain deeper understanding of its customers’ emotional and functional needs. “We wanted to steer in a different direction and make our furniture contemporary, trendy, and amenable to a very, very young generation,” says Sarkar.
As a result, the company brought out its much-awaited HomeScapes study, which revealed that 58% of consumers have a deep emotional connection with their furniture, and 44% consider it a community space to share with friends and family.
But what is driving this rush towards premiumisation? According to Anand Ramanathan, Partner, Consumer Products and Retail Sector Leader, Deloitte India, the Indian furniture market has undergone a sea change of late. “There are many reasons as to why this premiumisation is taking place. A key reason is real estate growth,” he tells BT. According to Ramanathan, as incomes increase, more people are able to buy a second home, driving demand premiumisation. “Overall market size of second homes and retirement villas was $1.4 billion in 2021 and is set to cross $4 billion by the year 2026,” he adds.
Ramanathan also claims that Indian home décor is becoming more design-conscious, aesthetic, and individualistic. “[Indian] consumers are valuing unique customised and branded furniture pieces over mass-produced items. They are also preferring bigger homes,” he says. Therefore, this sensibility is exactly what global players—like Poltrona Frau—are trying to tap into.
If global competition is growing, how are Indian companies responding? Godrej, for instance, has come up with some innovative strategies. “One thing is that Godrej prides itself in wanting to be a part of the consumer’s life from the beginning. Hence, we have partnered with architects across the country and we have a provision that when a consumer is designing her home, we want to be partners where we at Godrej would take care of everything, from the modular kitchen to the drawing room, from cupboards to beds,” Sarkar says.
Hussaine Kesury, Chief Business Officer at furniture retailer Pepperfry, has a similar philosophy. Unlike the quiet elegance of Poltrona Frau, Pepperfry’s world is a whirlwind of styles and designs. “We offer something for everyone,” says Kesury, adding that Pepperfry’s approach is all about curation and accessibility. “We keep a close watch on global design trends and introduce innovative pieces that stand out,” he explains. Starting primarily as an e-commerce company that had furniture at its core, Pepperfry has become one of the country’s leading companies that houses over 500 home-grown and international brands, with a selection that is both diverse and comprehensive. But it’s not just about variety, Kesury says. “We view our partners as collaborators, not competitors,” he explains, highlighting its unique marketplace approach.
In addition, Pepperfry’s transition from an online platform to an omnichannel presence with over 150 studios in more than 90 cities has been a game-changer. “Our experience studios allow customers to touch and feel the products, get expert advice, and make informed decisions,” says Kesury. This tactile experience is crucial in a market where furniture purchases are family decisions, often taking weeks to finalise.
Coming back to Poltrona, Coropulis understands that one of the ways to penetrate deeper into the Indian market is to embrace local styles and aesthetics. “When I sit down with my distributors, this is exactly what we discuss,” he says.
But if, for global brands, understanding the hyperlocal sensibilities present in India might be a challenge—certainly not insurmountable by any means—this is counted as a strength for a company like Godrej. Sarkar explains that India is such a market where every region has its own unique demands, its own unique aesthetics, needs, and so on. “That’s why I am travelling non-stop. Because I want to go to as many markets as possible. It is imperative that we understand these local dynamics and weave them into our business strategy,” he says.
Adding to this is the omnichannel strategy. “Today we have a website that lists all of our products... [and] even provides facilities for visual searches,” Sarkar says. With a robust network of 970 showrooms and 27 branches across India, the company is “servicing 17,200 PIN codes in India,” Sarkar mentions, showcasing the brand’s extensive reach.
The current state of the Indian furniture market is quite fascinating, with both local heritage brands and global luxury giants competing for the customer’s wallet. The entry of global brands like Poltrona Frau, Pottery Barn and others highlights the potential for international brands to carve a niche by blending their unique design philosophies with local aesthetics. Meanwhile, major Indian brands such as Godrej and Pepperfry are not just holding their ground but innovating to meet the changing needs of their customers. As these brands continue to evolve and adapt, the future of the Indian furniture market promises to be as diverse and vibrant as the country itself.
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