Godrej group firm Godrej & Boyce is eyeing sales of Rs 3.2 billion from its mid-premium home furniture and decor brand Script by FY 2020 as it expands its sales network, a top company official said Thursday.
According to a PTI report: The company would open 18 stores in seven major cities — Delhi-NCR, Mumbai, Kolkata, Pune, Hyderabad, Chandigarh and Bengaluru — in the next three years.
It would also invest around Rs 500 million per annum in the coming years — Rs 200 million on expansion and Rs 300 million for branding and marketing expenses.
“We are expecting sales of Rs 3.2 billion from Script by FY 2020,” Rajat Mathur, Business Head, Script told PTI.
As part of its expansion, Script would open five stores in Delhi-NCR in the next three years as the company is expecting the region to be a major market.
“With all five stores in the Delhi NCR region, we are expecting sales of over Rs 600 million in next three years,” he was further quoted by PTI as saying, adding that the company opened its first store in Delhi Thursday at Kirti Nagar.
It plans to open another at Defence Colony by the end of this year.
Besides the traditional brick and mortar format, Godrej & Boyce is looking to tap the online channel.
“Presently, our around 20 per cent customers are digitally influenced,” Mathur said.
In the brick-and-mortar space, the Godrej group firm also plans to experiment with small format stores (1,500-2,000 sq feet) where customers would be assisted through hand-held digital devices.
Presently, all Script stores are large format outlets.
As per its strategy, the company is looking to cater to the mid-premium segment which is estimated to be an around Rs 200 billion market.
According to Mathur, the Indian furniture market is estimated to be around Rs 500 billion, in which around 60 per cent is home furniture.
“The segment is largely…around 80-85 per cent… dominated by the unorganised players but it is gradually changing,” he told PTI, adding that now people are shifting towards branded furniture.