1. Challenges and Opportunities for a new Entrant in Home Furnishings

2. Siyaram Poddar Group Inception in 1954
A family promoted group with diversified interests in auto & pneumatic tires and textiles
Govind Rubber Ltd.
Balkrishna Industries Ltd.
Siyaram Silk Mills Ltd.
Total turnover of over USD 500 million

3. Siyaram Silk Mills
Largest manufacturer of blended apparel fabric in India
Over 30 years of textile manufacturing experience
Vertically integrated manufacturing setup
Own and operate multiple apparel and apparel fabric brands
Recent diversification into Home Textiles

4. Textile Scenario in India
Poised for growth in domestic sales and exports

5. Home Textile Market in India

6. Home Furnishing Industry
Urban home furnishings retail market in India is estimated to be Rs.9,300 crore and is expected to reach Rs.20,000 crore by the year 2012
Bed and bath furnishing products make up two thirds of the market
Indian Furnishings market comprises 94% of the unorganized sector
Shift in the industry toward branded products has become more pronounced in the recent past
Opportunity seen by international brands as Indian economy booms

7. Drivers for Growth Urbanization and Corporatization
Increasing incomes and purchasing power of the Indian consumer
Change in consumer attitudes
Organization of retail

8. Urbanization Over 300 million urban population in India
Urbanisation in India is faster than any other country in the world
Resulting in changing consumer behaviour across segments

9. Increasing Spending Power

10. Consumer Spending Pattern

11. Consumer Attitides Greater spending power as an economy
Increased exposure to various international lifestyles resulted in the Indian consumer evolving into a design and trend conscious citizen
Today’s Indian consumer is beginning to prize aesthetics and elegance
Indian home owners see their homes as an extention of their personality and thus take special pride in doing up their homes
Home is a status symbols
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12. Observations on Consumer Behaviour in Home furnishing
Relatively price insensitive as compared to apparel textile prices
Main focus on design and colour
Diverse preferences geographically and culturally
Majority planned and seasonal purchase
Consumer largely unaware of fabric performance and quality at the time of purchase

13. Cut Service For the retailer Reduced investment in fabric stock
Greater variety in the showroom
Newer colors and designs available
For the suppliers
Ease of production planning
Lengthening of product shelf life
Increased warehousing and logistics cost of fabric
Ability to communicate with the consumer

14. Cut Service For the consumer
Improved presentation and better shopping experience
Possible to make price comparisons for the same article in multiple stores
Association of a fabric with a source apart from the retailer

15. Challenges and Opportunities
Educate the consumer
Modern tastes and styles
Performance of the product
‘Real’ value for money
Inconsistency of price points across retail outlets
Maintain a robust supply chain to handle seasonal demand shocks
Move from unorganized wholesale to organized wholesale

16. Branding
Change approach to that of a packaged product similar to bed sheets and bed linen
Develop ability to create a demand for one’s product by advertising a ‘Branded catalogue collection’
Ability to educate consumers through advertising
Establishment of MRP’s – will instill consumer confidence and brand trustworthiness
Emergence of brands across all price levels and consumer segments as a strategy for product differentiation

17. Industry Vision Educated and discerning consumer
Demand for Indian brands internationally
Evolution of large format MBO’s for home furnishings
Tightening of norms for Fire Retardant and other specialty fabrics in hospitality and healthcare industry
Entry of more branded players at all price points
Competition leading to demand for innovation in product and presentation
Ultimately lead to more investment in the industry, leading to even higher growth

18. Thank You!
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