Online home furnishing firm Pepperfry expects its mattress segment Clouddio to contribute to around Rs 500 crore in its over Rs 7,000 crore revenue target by the next fiscal, a top official said Thursday.
According to a PTI report: The company estimates that its home brand in total will fetch revenue of around Rs 3,000 crore to the total business by end of next financial year.
“Overall Indian mattresses business is estimated to be around US$ 2 billion (about Rs 14,000 crore) crore of which Rs 300 crore is done online. We at Pepperfry to do half it. Clouddio accounts for 40 per cent of the total sale that we do. By 2021, we expect Clouddio to contribute at least Rs 500 crore in total revenue.
“We maintain that we want to reach US$ 1 billion revenue by 2021, and half of it will come from home brands,” Ashish Shah, Founder and COO, Pepperfry told PTI.
The company has started opening offline store for showcasing products and claims to have seen traction from customers.
“We now have around 65 Pepperfry studios where potential customers come and experience our products. We don’t sell from these stores. The order is taken online. This month 40 percent of our business came from customers who visited these studios,” Shah told PTI.
The company is setting up separate stores in the name of Pepperfy Snooze Studios for sleep related products, including mattresses to build up business in this segment.
“We started with company owned and managed studios. While this model will continue. We are giving out franchisee. By end of this fiscal, we should have 100 Pepperfry Studios and 30 Pepperfry Snooze studios. We are reaching out to customers both offline and online,” Shah was quoted by PTI as saying.
He said that company expects to reach break even by second quarter of the next financial year.
At present furniture business contributes 80 percent of total revenue of Pepperfry, 8-9 percent from sleep related products and rest comes from other segments.
“We see lot of potential in mattresses segment. It will be 2.5 billion opportunity by 2021. Customers need lot of hand holding when it comes to purchase of mattresses where Pepperfry Snooze will play strategic role,” Shah told PTI.