Dev Sarkar, Senior Vice President (B2C), Godrej Interio talks about using technology as a competitive advantage, the company’s focus areas and growth strategy
Bengaluru: Founded in 1923, Godrej Interio, the furniture arm of Godrej & Boyce, part of the diversified Godrej Group, has played a pivotal role in the country’s organised furniture sector. The group made its foray into the business by manufacturing the Godrej Storewel cupboards.
Presently, the national chain is strategically focused on bolstering its retail footprint in Delhi national capital region (NCR), by increasing its market share from 18% to 35% in the next three years and achieving a revenue of approximately Rs 450 crore from northern India by financial year (FY) 2026.
Interio has manufacturing facilities in Mumbai, Khalapur, and Shirwal in Maharashtra, and Haridwar and Bhagwanpur in Uttarakhand.It also has a central warehouse in Mumbai. It is present in 650 outlets and showrooms scattered across the nation.
In an exclusive interaction with IMAGES Retail, Dev Sarkar, senior vice president (B2C), Godrej Interio talks about the latest trends, challenges, growth. Edited excerpts…
How has the financial cycle been for the brand?
Godrej Interio has experienced exceptional growth over the past three years, achieving a commendable Compound Annual Growth Rate(CAGR) of 15% compared to the industry’s 6%-7% growth.
Our focus spans both home and office segments within the furniture category, striving to curate interior ecosystems and experiences through innovative, patented technologies. In the FY22, Godrej Interio achieved a revenue of Rs 850 crore. Looking ahead, we aim to consolidate our current standing, targeting an impressive 25% growth across all product categories in the upcoming fiscal year. Anticipating robust progress, we project a turnover of Rs 1000 crore by the end of FY23. Additionally, our focus on online sales through our Direct-to-Consumer (D2C) platform aims for a substantial 30% growth over the next two years.
Tell us about the key trends in the segment.
The furniture industry is set for signifiant growth in the upcoming years. Factors like urbanisation, the burgeoning middle class, and evolving consumer lifestyles are major contributors to this expansion. Furthermore, the upsurge in e-commerce platforms and digitalisation has unlocked fresh avenues for market outreach and enhanced customer engagement. These developments offer opportunities for brands like ours to innovate and connect with a wider audience.
How do you stay abreast of the latest?
As a brand, we prioritise staying informed about industry trends through various channels. Our approach involves conducting extensive consumer surveys to get valuable feedback and identify emerging trends in the market. By actively engaging with consumers, we gain insights into their preferences, behaviours, and expectations, which significantly shapes our strategies for the future.
What do you believe is your brand’s unique selling proposition or competitive advantage?
Godrej Interio’s unique selling proposition lies in its commitment to revolutionising the furniture buying experience through innovative technological advancements. One distinctive feature that sets us apart is ‘Visual Search’ tool on the e-commerce portal. This feature employs AI to suggest thematically and stylistically similar products to customers based on an image they upload as a reference. It streamlines the selection process, saving customers time and hassle by providing a tailored and intriguing product range. As this system evolves, our AI will further enhance its ability to interpret designs, materials, and geometries, recommending products with even more diverse specifications, catering precisely to customer preferences.
Moreover, Godrej Interio harnesses digital tools to craft captivating experiences for our customers. Our ‘3-D Room Planner’ is a prime example— IoT-driven CGI platform that allows our team to create high-fidelity visualizations of our products in customers’ live, virtualized spaces. This tool mitigates pre-purchase concerns such as colour synchronization, lighting, and orientation. Store managers utilize this planner to virtually design layouts of customers’ homes, incorporating virtual models of products according to their specifications, ensuring a seamless alignment with their needs.
Additionally, our brand prioritizes offering value-for-money products alongside high-end furniture. Leveraging our robust logistics setup and widespread presence in offline stores, even in smaller districts, we aim to expand our business and make our offerings more accessible to a wider audience.
How do you ensure that your brand maintains a consistent and desirable image in the eyes of consumers?
Godrej Interio ensures a consistent and appealing image by focusing on quality assurance and innovative designs that align with evolving preferences. A coherent brand identity across communication channels reinforces reliability. The brand’s commitment to exceptional customer experiences and sustainable practices enhances its positive image.
Regular market research aids in promptly meeting consumer needs and adapting to market changes. Moreover, leveraging technologies like artificial intelligence (AI) and machine learning (ML) optimizes prediction, aiding in better business planning and efficient inventory management. These technologies enable accurate demand forecasting, reducing product understocking and overstocking by adjusting to evolving trends.
Could you give an insight into your marketing strategies?
Our marketing strategies revolve around the growing influence of the digital landscape. Consumers now explore products online before visiting our stores, highlighting the significance of the digital ecosystem in discovery.
We’ve adapted our top and middle funnel marketing efforts towards digital platforms, emphasizing engaging visual content on social media and leveraging video platforms like YouTube, OTTs, and CTV-based ads. Our focus extends to enhancing e-commerce content for both our brand website and marketplaces. We actively engage audiences on Facebook, Instagram, and LinkedIn, each with its distinct content strategy catering to specific audiences. Our approach prioritizes a consistent and clear content strategy, reviewing performance quarterly to ensure relevance. We invest consistently in monthly media to target the right audience and gauge success metrics, adopting an ‘always-on’ approach.
Lastly, we continually experiment with platform formats and influencers aligned with our brand objectives of maximizing reach and engagement. Adapting to platform trends and audience preferences remains integral to our marketing approach.
Are there specific market segments or regions you are targeting for expansion?
We have experienced remarkable growth over the past three years, expanding to over 2000 points of presence across India. To provide more accessibility to clients over a wider territory, Godrej Interio will be expanding up to 150 outlets throughout India in tier 1, 2 and 3 towns by FY26. To enhance the consumer experience, Godrej Interio will also be experimenting the newer technologies and digital tools in smaller stores.
How has e-commerce grown for you?
E-commerce contributes 7% of the total revenue of Godrej Interio given the category. By increasing the delivery points to over 100 cities, Godrej Interio is targeting to increase the revenues generated from e-commerce by 30% in FY26.
