After realising and filling the gap in the organised home utility products market in India, Bonita India (owned by Casa Brands India Pvt.) has set its eye on expanding presence across the country by entering new product categories and opening 15 exclusive stores by the next year.
Established with an underlying desire to make modern households more convenient and appealing, Bonita was launched in 2012 and has already made a strong foothold in India as well as abroad with its presence over 25 nations including USA and UK. The 150+ SKUs of the brand, in India, are distributed through 40-50 distributors and are retailed through modern retail channels like Big Bazar, Shoppers Stop, Hyper City, Home Stop, Home town and various e-commerce portals including Snapdeal, Amazon, Pepperfry, to name a few.
The company which has been recently named among the Top 100 SMEs of India by the India SME Forum for the year 2016, is determined to organise the unorganised Home utility products market in India and targets a revenue of Rs 100 crores within the next two years.
In an email interview with Indiaretailing Bureau, Bonita India’s JMD Umang Srivastava talks about market opportunity, international demand and the future plans. Excerpts:
Bonita become a recognizable name in the Home utility products segment, which is largely dominated by the unorganized market, in just four years. How would you sum up the main trends in the home utility products market in India?
The market is largely dominated by cheap imports or unorganized local manufacturing in this category. When we started business in 2012, we realised that there is an absence of organized players in home utility products segment and Indian middle class & upper class consumers are willing to spend extra to get better designed and better quality products. And we set on a mission to cater to this segment, providing discerning customers premium products that they are looking for.
How would define your target customers?
Our target customers are working professionals or home-makers, who fall within 25-55 year age-bracket, and are looking for ease and comfort. Apart from utility and health factor, they are also looking for products that are aesthetically designed and convenient to use.
How many SKUs/ product categories do you offer under your brand? Which are the typically fast-moving categories and why, in your opinion?
We offer a total of over 65 products which have now proliferated to 150+ SKUs in all the categories – laundry, organizing, kitchen and storage solutions. The fast moving categories are laundry and kitchen solutions. Products like clothes drying stands, retractable clothes-line, dish-racks, servers and canisters have high repeat demand.
How is the demand in the overseas market vis-à-vis Indian market? Any plans to expand your presence internationally?
The overseas market has always been mature and hence there has always been a steady demand for branded home utility products. We are available globally across 25+ countries – USA, UK, Germany, Italy, Spain, France, Czech Republic, Poland, Belgium, Netherlands, Mexico, Australia, New Zealand, UAE to name a few. So, instead of expanding further, for the moment, we plan to focus on these regions.
And in India, I believe, we are the leaders.
Any plans to open own retail stores?
Yes, we are in the process of setting up exclusive Bonita India stores. We are also planning to expand our franchise network and aim to open 15 exclusive Bonita stores in India by early next year.
Last year, we opened our first exclusive store in Pune.
What is the current contribution of online vs offline sales in the overall revenue? Do you see it changing, going forward?
In India, the online retail segment is 10 per cent of our overall revenue. We are expecting a boom in the virtual space as it is growing at an exponential pace.
Please share last fiscal turnover and project revenues for current fiscal? Also, share YoY growth percentage over past 2 years.
We are targeting a Rs 100 crore turnover within the next two years and in five to six years we aim to achieve a turnover of Rs 250 crore. The YOY growth is 100 per cent at the moment.
Please offer details on current funding / shareholding, and also details on future funding strategies.
We are a self- funded company. Nonetheless, are looking at the option of getting funded. It also depends on the business strategy that we adopt in future.
What’s next in immediate future for Bonita India?
Broadly, our objective is to be the biggest brand in home utilities and take a leadership position in India and also to be recognized globally. The immediate aim is to broaden the category size and include new products. We are launching three different and unique range of stainless steel cookware, along with stainless steel dinner set and lemon set.
We are also planning to incorporatea wider range of products under our brand name.