The online furniture brand Pepperfry, which is targeting to clock a revenue of INR 3,000 crore by the end of this fiscal, has revamped its look with a refreshed logo and a new brand identity.
“We want to beautify 20 million homes by 2020. So, the 20 million is roughly the SEC-A urban population and we want to ensure that there is at least one piece from Pepperfry in everybody’s house,” said Kashyap Vadapalli, CMO and Business Head, Pepperfry.com.
The company that hit the RINR 1,000 crore gross merchandise volume (GMV) mark last year has set itself a target of INR 3,000 crore revenue by March 18.
The new logo of the five-year old e-retailer espouses its three core values and will embody the shift in the brand’s identity.
Talking about the new concept and thought process behind the design of new logo, Vadapalli said, “The three core values of our brand are ‘Intensity, Diversity and Joyfulness’. By intensity, we mean our desire to go the extra mile to find a solution to problems. We serve everybody in this segment and that is where the diversity bit comes in and finally when we realised buying furniture is a source of anxiety for a lot of people, we have tried to find solutions to that problem and that is where the joyfulness aspect comes in.”
Vadapalli explained that the smiley in the logo was the basis of the font of the new logo and also how the three core values fit in to it.
The brand plans to launch 25 more studios, some of them in non-metros as well, in the coming eight months and take the total number of studios to 48.
“We have 23 studios right now and we would like to get to 48 studios. Over the next six to eight months we think we can open 25 more studios. Some of them will be our own studios and some of them will be via the franchise route. So, places like Coimbatore, Mysore, Vishakhapatnam, Indore, Kanpur and Goa among others will see studio Pepperfrys cropping up,” said Vadapalli.
The furniture market in India, according to Vadapalli, is USD 20 billion strong or roughly INR 130,000 crore. Of which, 90% is dominated by the unorganised market.
“The online furniture business is about 15-20% of the organised business. So, that comes to about INR 2,000 crore and we roughly hold 50-60% of the online furniture market,” said Vadapalli.
Pepperfry has been spending close to INR 100 crore annually on marketing and Vadapalli says that the spilt between traditional media and digital is 50-50.
GST on furniture and a lot of the categories that Pepperfry functions in falls under the highest slab, that of 28%. Speaking about the impact of GST on the business, Vadapalli said, “Initially, there was a lot of fear that it will potentially drive the prices up but that hasn’t really happened. On the face of it the tax seems to have gone up from 14% VAT to 28% GST, but when you added excise and octroi the number actually was 25%. So, the difference is not much and therefore we are able to provide similar value to consumers as were doing earlier,” explained Vadapalli.