Launched in 2013, Pepperfry has more than 60 lakh registered users and 1 million+ home products. Pepperfry has changed the way of buying furniture. Indians loved the idea of buying furniture from the comfort of their homes and that is why the company has 7 million+ visits on the website.
Today, if I ask you to buy furniture online, Pepperfry would automatically pop up in your mind. The company have grown rapidly over these years. The company delivers its products in more than 500 cities in India. But, how did the company become so successful? To answer this we need to understand their business model.
Pepperfry is an online marketplace headquartered in Mumbai that deals in furniture and home décor like furnishings, lighting, beds, tables, chairs, cabinets, kitchen appliances, bathing equipment, mattress, and so on.
The founders of Pepperfry are Ambreesh Murthy and Ashish Shah. The tagline of Pepperfry is ‘Happy Furniture to You’.
The company has launched 100+ studios across 57 cities in India In these studios, a wide range of furniture is displayed so people can come and physically see all the furniture. In 2018 Pepperfry tied up with Quikr for a furniture exchange program.
Pepperfry also launched a furniture rental service in September 2018. People can rent furniture and can use it for a period of 6, 9, or 12 months.
Target Audience of Pepperfry
The target audience of Pepperfry is people between the age group of 35-45. The company is also targeting people who are in their mid-20s to early 30s.
Pepperfry follows the omnichannel strategy where they allow their customers to order products anytime, anywhere from any device. The company employs the managed marketplace business model.
They have connected with small and medium-sized business merchants and artisans. These merchants can sell their products through Pepperfry.
The category team meets the sellers to check the quality of products and once approved they take some products from them. These products are sent to the studios for photoshoots.
The photos of the products are then placed on their website. When a product is ordered from the website, it is brought from the sellers and delivered to Pepperfry’s warehouse.
What is Unique about Pepperfry’s Business Model
1) Pepperfry Studios and Franchise Model:
Pepperfry Studios
In India, people have a habit of checking products and services physically. To gain the trust of the people the company launched Pepperfry studios where people can explore all the types of furniture in offline mode. People cannot buy furniture from these studios. Although these stores help consumers make big purchases online.
The interior design professionals that are working in these studios provide free consultations to customers for their home interior needs. About 25% of the business is generated from these studios.
The company has also started a franchise program where small entrepreneurs can own a franchise with Pepperfry and run a profitable business.
The franchise-owned studios work on a 100% price parity and do not require the partner to hold product inventory.
“Omnichannel has always been an integral part of our growth strategy and our existing franchise program has helped us expand our offline footprint by creating several touchpoints across major metros and Tier 2 cities.” added Ashish Shah.
2) Powerful Marketing:
Pepperfry has collaborated with many Influencers and YouTubers. As we all know YouTubers and Influencers have many followers. This helped in brand awareness and people started to buy products from Pepperfry.
During the initial days of Pepperfry, their ad campaigns were focused on getting the audience’s trust. Later on, their ad campaigns shifted to providing specific benefits like looks and design of products.
High-quality images are placed on the website to attract people. The company found out that 65% of the customers are women.
So, to attract them Pepperfry’s team created powerful campaigns that resonated with their target audience. They also provided various discounts which led to an increase in sales.
The revenue model of Pepperfry is straightforward. They earn money by selling products. About 80-85% of Pepperfry’s Revenue is generated by selling furniture in the solid wood furniture category. They have a revenue of Rs 500 crore per annum.
The main reason for high revenue according to Ambreesh Murthy is that the gross margin is as high as 45% while the contribution margin is only 25%. Also, after deducting various costs such as direct cost, logistics, and discounts Pepperfry claims that they earn a contribution margin of 25% – about Rs 2,025.
”Also, the cost of customer acquisition is very low. In fact, we have a high rate of repeat purchases. This has been possible as we sell a range of ancillary products including mattresses, bedsheets, pillows, etc. While a customer may buy a bed once in three years, she does return to the website to purchase related products at least three times a year,” Ambreesh Murthy explained.
Conclusion:
Pepperfry is an inspiration for many startups. Their business and revenue model are simple yet effective. They understood what Indians wanted and designed their business model accordingly. Customer satisfaction is the most important aspect of their success.
FAQ
Is Pepperfry an Indian Company?
Yes, Pepperfry is an Indian Company started by Ambreesh Murthy and Ashish Shah in 2013.
What is Pepperfry Studios?
In these studios, people can come and see all the furniture. The furniture is not for sale but people can check the product quality and design. Once they are satisfied they can order the furniture online.
What is Pepperfry?
Pepperfry is an online marketplace headquartered in Mumbai that deals in furniture and home décor.
What is the revenue model of Pepperfry?
The revenue model of Pepperfry is straightforward. They earn money by selling furniture products. About 80-85% of Pepperfry’s revenue is generated by selling furniture in the solid wood furniture category.
How many products does Pepperfry have?
Pepperfry has 1 million+ home products ranging from beds, tables, chairs, cabinets, kitchen appliances, bathing equipment, mattress, furnishings, lighting, and so on.
Thinking about renovating your home? Isn’t IKEA the first name that pops up in your head when you think about shopping for furniture?
In recent times, IKEA has become the go-to option for young and old alike to shop for good quality, durable and affordable home décor pieces. ‘Affordable’ is the keyword here.
Have you ever thought, how has IKEA been able to lower the costs of its products The brand has made a niche for itself in selling high-end beds, sofas, dining sets and wardrobes at half the price of its competitors, but how does it manage the same?. Well, here’s your answer.
There are quite a few methods that IKEA follows to keep its prices low while maintaining the quality of its products. Let’s take a look at these methods.
IKEA first decides on the price range for a particular product before starting to design the same. Where almost all competitor brands go by the book and follow the conventional process of choosing a design theme, making a storyboard, procuring the materials, putting together the design and then pricing the item according to the cost incurred, IKEA does the exact opposite.
IKEA’s Flat Packaging Innovation
IKEA’s founder, Ingvar Kamprad, introduced a new selling system in the year 1956, which he termed ‘flat-packaging‘. This flat-packing selling technique has now become IKEA’s identity. So, what exactly is flat-packaging? It is a selling system where IKEA sells parts of furniture instead of selling the whole product together.
This allows the products to be packed in flat pieces, facilitating easier transport to stores. It also gives customers the option of choosing customized pieces for their use according to their convenience. Thus, IKEA manages to maintain the low price of its products.
IKEA Flat Packaging
Bulk Production
IKEA produces all their furniture in bulk. This is something that they have agreed to time and again. Be it dining tables, chairs, sofas, wardrobes, beds, showcase or anything else, they produce a good number of all designs. Therefore, they are offered discounts on the bulk purchase of raw material as well as making costs. This is how the bulk production method allows IKEA to maintain a low price strategy.
Unique Construction Technique
If you ever have the time to go through IKEA’s website, you will come to a part that describes their construction methods. They are always innovating new techniques and methods to maintain their low selling price while making sure that their customers have no complaints about the quality of the products.
On the website, it is explained how IKEA uses the technique of constructing their furniture by layering sheets of wood over a honeycomb base structure. Since the honeycomb core requires less wood, it costs less money for production. Thus, IKEA is able to maintain a low cost of products without compromising on quality.
IKEA’s Self Help Stores
IKEA believes in promoting independent shopping. What is independent shopping? It is nothing but allowing customers to shop on their own. Thus, IKEA does not hire a lot of store staff. This helps them to cut costs towards wages and provide customers with lesser priced products.
IKEA Store
In order to allow customers to shop independently, they also print all the product details, cautions, installation processes, etc. on the price tags. Hence, customers can easily read the guidelines on the price tag and choose the furniture they want to buy without any external help.
Take it home Policy
IKEA has a policy where the customers can carry their buys home by themselves on the same day. Although, it is a tad bit inconvenient this policy does come with its own set of contributions towards the low price strategy.
IKEA Take it Home Today Policy
Since customers can carry their own products, they do not need to pay the delivery charges to IKEA or pay higher product prices that may be used to facilitate free delivery. This reduces a lot of overhead costs on the making charges.
A Pioneer In Do it Yourself
If you have ever shopped at IKEA, you know pretty well that you must be adept at assembling and installing the furniture yourself. The company promotes a DIY environment, where it allows customers to install their own furniture. The DIY model of IKEA stands for Do it yourself.
IKEA Do It Yourself
They provide guidebooks and assembly charts to support customers in installing their own furniture. Thus, the company does not need to pay any extra charges to internal or external teams for installation, thereby, maintaining their low price.
In the recent past IKEA has understood that the DIY method can become a hassle for some customers, so, they acquired TaskRabbit, an external furniture installation support company. Therefore, customers have the option of hiring executives at TaskRabbit for assembling their furniture at lower costs.
IKEA TaskRabbit
Conclusion
With so many unique features and methods, IKEA has become a front-running strategist in keeping its product pricing low and maintaining its position in the market. The innovation applied in every aspect of the business makes sure that IKEA keeps giving a tough challenge to their competitors in the market, holding the top position when it comes to being one of the best furniture-selling businesses in the world. Now you know where to go the next time you want to furnish your home.
FAQ
Why is IKEA so cheap?
IKEA employs flat packaging, DIY model, and self-help stores which help the brand to keep its prices low and competitive while not compromising on the quality.
What does the DIY model of IKEA stand for?
The DIY model of IKEA stands for Do It Yourself, where it ships the product in flat packaging and the customer has to assemble the furniture by themselves which is one of the major reasons how it manages to keep costs low for consumers.
Is IKEA cheap in India?
IKEA to boost affordability in India has priced Out of the 7,500 products that it sells about 1,000 are priced less than Rs 200 and 500 cost under Rs 100.
Does IKEA sell online in India?
Yes, IKEA does sell online in India.
What does the word IKEA stand for?
IKEA stands for Ingvar Kamprad Elmtaryd Agunnaryd.
Changing and moving is a part of life. With the rise in corporate culture, shifting has become more frequent among the youngsters.
Nowadays, people don’t settle in one place for their entire life. They tend to shift due to work, weather, or other reasons. When it comes to shifting, the first thing that gives a sense of stress is the shifting of furniture.
The process of furniture shifting can be prone to damage and also expensive. So, a great idea here is to rent furniture. This means you can keep and enjoy the furniture for as long as you like. Plus, you don’t have to worry about shifting, as you can return it.
In India, we have many furniture rental startups that make the process easy.
In simple words, furniture renting helps you to enjoy good quality furnishings without a long commitment. It helps you to adjust to changing living situations.
If you are someone who keeps on moving from one place to another, this is the perfect choice for you. Buying furniture and moving it every time you have to shift can be troubling. This can lead to damage to some high-end furnishings. Also, shifting furniture is quite an expensive process.
So, you can find furniture as per your preferences and need anywhere. Then you can make payments monthly or for a whole year. In this way, you can have the furniture without any lifelong commitment to it.
Furniture Rental Startups in India
Gone are the days when people would buy furniture and settle with it for the rest of their lives. The youngsters nowadays don’t like such sort of commitments with anything.
They like the concept of moving, changing, exploring. Youngsters nowadays keep on moving for work, exploration, or adventure. So, furniture renting startups is a new go-to platform for many.
These startups enable people to order furnishings online. People simply have to pay rent for the time they need the furniture. When their need is over, they can send it back. This no long-term commitment is what is contributing to the success of many startups.
The following are some of the startups for renting furniture in India:
Pepperfry
Pepperfry – Top Furniture Rental Startup in India
Pepperfry is an online platform for all kinds of home furnishings shopping. It was launched in the year 2011. Its founders are Ambareesh Murty and Ashish Shah. The startup has its headquarters in Mumbai, India.
Cityfurnish – Top Furniture Rental Startup in India
Cityfurnish, the e-commerce platform offers the facility of renting furniture. It was founded in 2015. Its founders are Neerav Jain, Saurabh Gupta, and Vinit Jain. The company is headquartered in Gurugram, Haryana, India.
Cityfurnish offers a wide variety of modern contemporary furniture. People can rent quality and durable furniture right from their homes. It offers services like free delivery and setup at home. They also offer free maintenance of the furniture.
An Indian startup, Cityfurnish not only offers services in Gurugram but also to other big cities.
Rentickle
Rentickle – Top Furniture Rental Startup in India
It is a startup for renting furniture. It launched in the year 2015. Amit Sodhi and Vineet Chawla are the founders. The startup has headquarters in Delhi.
The company’s main goal appears in its tagline. This is to help people turn their houses into homes. It has home furniture items, home furnishings, electronics, and other appliances on rent. The quality of the products offered here is exclusive with a wide variety.
This became so popular that it was able to gain more than 10,000 subscribers in its first two years. Since then, it has been a go-to stop for the people who wants to rent furnishings.
Furlenco
Furlenco – Top Furniture Rental Startup in India
This startup for renting furniture was founded in the year 2012. Ajith Karimpana is the founder of the Furlenco. The company has headquarters located in Bengaluru.
Here, people can rent a range of quality furniture like beds, dining tables, sofas, and also full room setup packs. The platform also offers great discounts on furniture to the customers.
Furlenco is in service in many metropolitan cities of India.
Furlenco- Furniture Rental Startup in India
Rentomojo
Rentomojo – Top Furniture Rental Startup in India
Another popular Indian platform for renting furniture is Rentomojo. It was established in the year 2014. Geetansh Bamania, an ex-IITM, is the founder of the startup. The headquarters of the company is in Bengaluru.
Rentomojo provides various categories of products. From furniture to electronics, the platform has everything for furnishing. The company also offers smartphones for rent.
The company provides services beyond Bengaluru as well.
Guarented
Guarented – Top Furniture Rental Startup in India
This is another popular startup in India for having furniture on rent. It was established in the year 2015. Its founders are Abhimanyu Dikshit, Harshwardhan Raikwar, and Prateek Agrawal. The startup has its headquarters in Bengaluru, India.
The company enables people can pay affordable prices and get durable quality furniture on rent. The idea is to cater to the needs of people who don’t want to own things. Also, the people who are always on a move or have troubles with finances.
On Guarented, you can find a great variety of beds, refrigerators, dining tables, mattresses, sofa, etc.
Voko
Voko – Top Furniture Rental Startup in India
Voko, the Indian startup for renting was established in the year 2016. Its founders are Bhuvnesh Sharma and Harsh Vardhan. Both of them were earlier employees at OYO. The company’s headquarters are in Gurugram.
The startup focuses on the needs of youngsters moving from one place to another. It has a variety of furniture, electronics, and other appliances. These include Television, fridge, beds, tables, etc.
Conclusion
With the advent of technology and digitalization, everyone wants everything on their phones. The lifestyle among the youngsters is getting more and more mobile. This mobility has given a boost to furniture rental startups.
The furniture rental startups enable people to find a variety right in their smartphones. They can browse from an endless range of variety and pay rent for it. These startups also offer discounts, free installation, and maintenance. In India, there is a rise in mobility and income among working professionals. This is an ideal atmosphere for furniture rental startups to grow more in the future.
FAQs
Which are the top furniture rental startups in India?
Top 7 Furniture Rental Startups in India are:
Pepperfry
Guarented
Cityfurnish
Rentickle
Furlenco
Rentomojo
Voko
Can we rent furniture from Pepperfry?
Yes, Pepperfry provides furniture renting service since 2017.
Which are the Indian start up dealing in online furniture sales?
Some of the top Indian Startups that deals in selling furniture are:
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on.
The society and the world have welcomed the idea of shared economy. Today’s youngsters have understood the many benefits of sharing and renting rather than buying. It saves time and money and that is why we see a rise in car rental services, shared apartments and holiday homes, rented outfits and so on.
Sidhant Lamba had witnessed some major problems people face when it comes to their struggles with furniture. The buying prices are always high and there is tons of difficulty in selling used furniture. When someone wants to move or simply change the style. For those who are moving often for jobs have to take out additional time and bear the cost spent to move bulky furniture which in many cases arrives damaged. People also get stuck with old-fashioned furniture which doesn’t go with their home décor. Some people need temporary furniture but don’t want to buy them and so on. Fabrento wants to solve all these problems and then some more with free delivery, setup and installation.
Fabrento provides Furniture and Appliances on rent in Delhi, Bangalore, Mumbai, and Chandigarh. Read about Fabrento Company Profile, Revenue, Founders, Business Model, Logo, Growth, Funding, How it works, products etc.
Fabrento is a startup headquartered in Delhi which provides furniture rental for homes. They also deals with electronic appliances, started rental of furniture for offices, created Fabevents which Rents furniture for corporate and celebratory events. They have even launched a premium range for the very well heeled who want to live with luxury.
Fabrento aims to become one of the most successful furniture and appliance rental company in India. Since their sister company manufactures majority of the furniture, Fabrento has the firm belief in providing excellent quality and beautiful furniture to provide their tenants a tasteful home.
Evolution and change is very important but you can’t lose your core business if you believe in it. Alongside quality of delivery and service is key in any service providing business and Fabrento aim at excelling in that.
The online website and soon to be launched mobile Apps of Fabrento are designed in such a way that anyone can navigate it and rent functional and sleek furniture in just one tap. Their affordable rental prices ensure that renting furniture becomes extremely cost effective as compared to shelling out big bucks to buy bulky furniture.
Fabrento – How it Started?
Fabrento was started with the main goal of converting consumers’ dream homes into reality.
Mr. Sidhant Lamba, Founder, Fabrento has always been passionate about décor and furnishing. He was keen on bringing the latest furniture designs into people’s homes and offices. However, every time a new model of furniture hits the market, it is not at all a feasible option to buy it.
Because of this, many and especially millennials, fall behind to create that impressive first impression through their home décor. Furniture renting is already a lucrative business oversees and this inspired the birth of Fabrento to cater the to the millennial market of India.
Sidhant has always been someone to think out of the box. He has done his graduation from Apeejay Institute of Design in Bachelors of Interior Design. Following this, he acquired a Master’s from Regent’s University London in International Business.
He has further finessed his studies through studying Interior Decoration from Inchbald School of Design, London, Alongside Art Markets from Sotheby’s Institute of Art, London and Lighting Design course from Chelsea College of Arts, UK. He has also studied Digital and social media marketing from Dubai.
He started his career through family business, The Continental Group, which is providing interior solutions since the 1940s. He added the business of a luxury furniture store which sold furniture fashioned and manufactured by the company alongside many brands from Europe and south east Asia.
In 2016, Fabrento became the precious product of his education in interior designs and international business and his experience in the field.
Fabrento has an exceptional team of IIT graduates at the supervisory, operational, management level and advisors with 40+ years of experience in the furniture, design and business industry. They all bring their unique ideas and knowledge on the table. This is why Fabrento furniture is designed with extreme skill and care. All the rented items are at their highest quality and are functional to suit customers of all backgrounds.
Fabrento – Products/Services
Fabrento has a vast array of furniture. They offer both package deals as well single pieces. Under bedroom category Fabrento provide single and double beds, king and queen size beds, beds with and without storage, wardrobes, dressers, study tables, etc. Customers can decorate their living space with their unique sofas, coffee tables, recliners, TV units, and multi-purpose storage units.
Fabrento Beds
Apart from these, Fabrento also offers furniture for dining area, appliances, and home office, kid’s furniture and even art and accessories.
Fabrento further offers complimentary cleaning and maintenance visit every 6 months to keep the rented furniture in their best condition. Under the relocation offer, they transfer all the rented furniture from one place to another within the city, without engaging any extra charges.
Fabrento – Target Market Size
Major cities such as Delhi, Mumbai, and Bengaluru etc. have witnessed a surge in furniture renting. Researches state that about 65% of India’s population is between the age of 18-35. Out of these, 150 million people live on rent in the Tier 1 and Tier 2 cities of the country and they are turning more towards furniture renting.
“We expect that with the increasing urbanization, rising trend of nuclear families, and expanding working population, Fabrento will continue to witness demands.”, says Sidhant Lamba.
This demand is expected to rise in future as the furniture rental market is growing at a robust rate over the period of 2017 to 2024. In India alone this market has been calculated to be about $800-850 Million. A PricewaterhouseCoopers report shows that the rental market will touch $335 billion by 2025 globally.
Fabrento – Startup Launch
Lamba came across the idea when a friend very easily rented furniture helping his brother set up home in New York. Of course furniture has been rented for events and in an unstructured way for many years in India but to be able to develop a tech platform serving as a virtual store seemed very appealing.
“As an interior designer who wanted to dabble in a tech space this seemed like a great fit.”, added Sidhant.
The journey of ideating and designing involved hours and days and months of research of the kind of brand he wanted Fabrento to be and what they wanted to be perceived as.
Designing is the part Sidhant loves whether it’s interiors or graphics. He is blessed to have an incredible team who understand our vision and help rectify it when anyone in the team is going off track.
Initial people they spoke to were bankers- very important as they have to believe in the vision for if one were to borrow money. Then millennials through surveys, and met with industrialists in ranging fields with vast experiences to pick their mind about how to set Fabrento off the ground.
It is true that there are a few furniture renting service providers in the market. However, what makes Fabrento unique and ahead of the race is the feature of customizing office furniture to rent to match their décor and style. This special service of personalizing their products to meet the rising demands of the clients has been a feature that no other rental furniture company has undertaken to date.
Fabrento’s Croisees Study Table
Fabrento has now partnered up with co-living establishments in order to provide the most comfortable, functional and stylish furniture for the students and young professionals.
Alongside Fabrento has one of the largest collection of beds which is essentially the most important part of your home as you spend almost half your life in your bedroom.
From a business point of view, Fabrento manufactures most of their furniture in their sister companies plants on their specifications. So, remodeling and renovating it to new for the next clients in easier for them as compared to the peers.
Fabrento – Name, Tagline and Logo
Fabrento just poses the two words ‘fabulous’ and ‘renting’. This name has been selected to send out the message that this company is ready to provide their customers fabulous furniture at fabulous prices.
Fabrento Logo
It is important for them to see that their consumers rent their dream furniture and décor without burning a hole in their pocket. Added benefit is that it’s easy to write, easy to pronounce and easier to remember.
Fabrento create and design most of their furniture by their teams and in the factories of continental. This is to make sure that the customer gets high end products which then can be refurbished and altered as per the demand in the next cycle in their own repair centers.
This flexibility makes their rented furniture last longer than the rest. The economic inflation works in their favor as it creates more market for rentals. Customers can also swap their furniture according to their need and taste.
Fabrento – User Acquisition and Growth
It took them a long time to devise a marketing strategy. Fabrento as a company believe in the correct spend and not unnecessary spend as it’s easy to get into a rut of brand building exercise which can lead to incorrect and unpalatable spends.
They use a combination of digital marketing on google, social media marketing on Facebook along with maintaining hygienic social media presence for user acquisition. Forming healthy and strategic alliances are key in marketing and mutually beneficial marketing with different publications is a must.
Through media coverage, Fabrento has started to spread the news of the company and the blog Fabrento News. Prestigious newspapers such as Economic Times, The Quint, Indian Express, Business Standard, The Hindu and many more has taken up the story of Fabrento and has spread awareness about their products, events and services among the people. They also have an excellent social and digital media outreach plan which helps them spread awareness and brings large orders of homes.
The growth rate is reflecting the success, with Fabrento’s revenues growing at the rate of 2.5 to 3 times on YOY growth scale.
Fabrento – Startup Challenges
One major challenge in the field of furniture renting is really the lack of awareness. Fabrento wants to spread more awareness among the masses to let them know the wonderful option of renting furniture. They no longer have to shell out big bucks and buy their favorite piece of home décor.
Fabrento’s initial investments were INR 15 crores. They had a major economic support by their sister groups and also had the assets structure to support the start up.
Fabrento – Advisors and Mentors
Mr. Sanjiv Lamba – The founder’s father and Kavi Ghei who is an illustrious investor in many different fields of business are the advisor of Fabrento. Alongside Mr. Aditya Gupta who is an investor and owner of Gems capital investing in many start ups is also mentoring the startup.
Fabrento – Future Plans
They are hoping to reach new milestones in the future. They definitely want to add more cities such as Hyderabad and Chennai and want to create a presence in Gujarat. Additionally they want to continue collaborating with different businesses and establishments who are in want of their products.
They have also launched Fabevents in Delhi and Punjab. This is rental of furniture and accessories for the the evergreen wedding market and celebratory events. Alongside they have created furniture for corporate events for businesses and want to expand this segment to other places in India. They want to concentrate on small offices which they can customize too.
Fabrento – FAQ’s
What is the minimum period of subscription?
The minimum period of subscription is 3 months. You can also opt for 6, 9, or 12 months of tenure.
When should I pay the rent? What if I get delayed in the process?
You are required to pay the monthly rent before the 5th of every month. The first month’s rent is adjusted according to the date of delivery. After the due date, you’ll be charged a 1.5% interest rate until the monthly rental is paid.
What are the payment methods available for paying the deposit and rent?
The deposit is to be paid online while booking your subscription. This deposit will be refunded if you cancel your order before 2 days of the delivery or after your rental tenure ends. For monthly rentals, Fabrento will send you an invoice with a payment link on your registered email id. Payment can be made via net banking, credit/debit card.
What extra benefits can I avail for renting the furniture for a longer time period?
The company aims at making its customers happy with its service. You can avail offers for your rental subscription by calling on 01139585883 with the companies customer experience team.
Can I pay upfront for my rental tenure?
Yes, you can. Additionally, you will be getting an extra discount upon paying upfront for your subscription. Just write to support@fabrento.com or call on 011 39585883. They’re happy to serve you.
Fabrento – Conclusion
Fabrento offers services for both businesses and Individual Customers. The company is aiming at creating a dream home into a reality in just one click on your phone. It provides services that have access to state-of-art home furniture, office furniture, home appliances & accessories for rent at affordable rental prices with free delivery, setup & installation. The company is funded by Continental Group which is a leading player of turnkey interior & furnishing solutions with over 60 years of experience in the country. The strength of Fabrento is it has the widest range of products which its customer can choose to rent. The company is largely focused on providing its users the finest quality, customized solutions, and a good experience to its customers.
The path to success isn’t easy. One has to work hard, sacrifice comforts and walk on an obstacle-laden path. Some entrepreneurs came from wealthy families. Others have a rags-to-riches tale. Swede Ingvar Kamprad was one with literally no support and later on joined the list of the richest people in the world.
Ingvar is the founder of the furniture company, IKEA. Setting up IKEA and representing his country on the global stage, Ingvar Kamprad’s journey is inspirational and mind-numbing.
As a child, Ingvar lived on a small farm called Elmtaryd in the Swedish province of Smaland. Sweden was facing the wrath of poverty those days; the hardships he was subjected to was a blessing in disguise as he invested all the values gained in these tough times to form IKEA’s ethics. Ingvar began selling matches at six.
At the age of ten, he sold Christmas decorations, pencils, and fish. Despite being dyslexic, Ingvar performed well in academics because of which his father awarded him a small amount of money. With the money, he opened a company named IKEA, an abbreviation for Ingvar Kamprad from Elmtaryd, Agunnaryd.
Ingvar Kamprad—How It All Started?
IKEA Logo
After setting up IKEA, Kamprad used milk trucks to deliver his furniture goods. In 1947, he began selling locally made items of furniture. However, Ingvar faced intense criticism in 1955 as manufacturers protested against Ingvar’s low prices. This was a turning point for the company as it shifted towards flat pack—a piece of furniture or other equipment that is sold in pieces packed flat in a box for easy transport and is assembled by the buyer. This was a change in IKEA’s ideology regarding furniture.
Ingvar targeted the middle-class as IKEA presented affordable and stylish furniture was easy on the pockets. By his new idea, Ingvar could serve all sections of the society, rich or not, simultaneously with a unique brand of furniture equipment.
Flat packaging minimized shipping costs, transportation damages, and increased the store inventory capacity. Ingvar planned and modified IKEA stores to suit customer expectations.
Ingvar Kamprad—Worldwide Phenomenon
Ingvar soon expanded his business into various parts of Sweden. A few years later, IKEA established its presence in Norway, Germany, and then all over Europe. This was the thrust to setting up IKEA globally. Ingvar’s venture was accepted globally and this was attested when IKEA opened up a store in the city of Shanghai; 80,000 people visited the store! IKEA has over 300 stores in 38 countries across the globe.
IKEA opened its first store in Japan in 1974, and in Australia, Canada, and Hong Kong in 1975. Later on, IKEA was launched in countries like the United Kingdom, the United States, Italy, Belgium, and the Dominican Republic in the year 2010.
The Stitching INGKA foundation is named after Ingvar Kamprad. This foundation owns INGKA Holding, the parent company for all IKEA stores. This charitable foundation was named as the wealthiest charity in the world in the year 2006, which was then overtaken by the Bill and Melinda Gates Foundation. Ingvar was the chairman of The Stitching IKEA foundation.
In an instance of charity, IKEA Australia had agreed to match dollar for dollar co-workers’ donations and donated all the sales of the IKEA Blue Bag to help people affected by the 2004 Indian Ocean Tsunami.
Ingvar Kamprad—Becoming the Richest
In 2004, the Swedish business magazine declared Ingvar as one of the world’s wealthiest people. However, this wasn’t an accurate measure since the magazine assumed Ingvar’s wealth equal to IKEA’s valuation at that time. In 2010, Forbes magazine estimated Ingvar’s wealth at 23 billion USD. His ranking decreased substantially from 11th to 162 in the standings due to a lawsuit that prevented his family from access to his funds. In 2015, Ingvar was the eighth richest person in the world according to the Bloomberg Billionaires Index, Ingvar Kamprad net worth is $58.7 billion.
Ingvar was known for simplicity and frugality, and his company had a reputation for community outreach and philanthropy. IKEA has actively supported UNICEF and other important committees of the United Nations.
Ingvar Kamprad—Swedish Furniture Chain
In 1973, IKEA established its first store outside Scandinavia; the shop was set up in Switzerland. The expansion of IKEA cemented Sweden as a producer of top-class furniture. The employees wore jeans, shirts, and jumpers—a down-to-earth image of Swedish people.
Ingvar Kamprad—Leadership Skill
Ingvar had razor-sharp focus towards IKEA’s development. He used to visit IKEA stores till his last breath. Ingvar was a personality one should look up to; he used to travel in economy and treated his employees as ‘co-workers’. He encouraged his employees to dress informally and drove an old Volvo.
Apart from his fascist comments, Ingvar will be remembered as one of the greatest entrepreneurs of the 20th century. His simplicity and dedication depict a clear picture on how a real leader should guide his employees. Starting a company while facing the wrath of poverty, Ingvar has proved that nothing is impossible to achieve. He passed away in 2018, leaving behind a company that changed the face of the furniture industry.
Ingvar Kamprad Elmtaryd Agunnaryd. IKEA is an acronym that stands for “Ingvar Kamprad Elmtaryd Agunnaryd”.
Why is IKEA called IKEA?
IKEA is named after the initials of founder Ingvar Kamprad, Elmtaryd, the farm on which he grew up, and Agunnaryd, the nearby village.
How much is the Ikea company worth?
Founder of Ikea net worth is $58.7 billion.
Ingvar Kamprad—Conclusion
Ingvar Kamprad was the founder of IKEA. He was surrounded by myths every time while he was alive. All the myths were found to be true by the journalists. He was famous and was known for his frugality and hardworking. It all started with selling matches at the age of 7. He realized that he could gain profit buying matches in bulk cheaply. And selling them at low prices individually. By the age of ten, he was selling flower seeds, greeting cards, Christmas decorations, and pencils. By growing its business, the company started to sell Furniture’s and made itself a brand. All in all, nowadays IKEA earns more than 34 billion euro per year. It is the most famous furniture store in the world.
The global pandemic has left an impact on the people and business in certain damaging ways. It has made the industries go through a tough patch of time experiencing uncertainty in jobs due to salary cuts, layoffs, unpaid leaves, etc.
Before the lockdown, the Indian economy was expected and supposed to see exponential growth. This speculation was based on the changing buying behaviour of the consumer when it came to purchasing furniture or other necessities. The demand for rental furniture was on the hike making people choose to rent the furniture rather than buying it. But, with the global pandemic, even the furniture industry was impacted.
But the culture of Work from Home adapted and implemented by the companies in India have revived the growth of Furniture market. Making people buy more and more comfortable furniture to work effortlessly at home.
Furniture generally refers to movable/immovable objects that support various human activities such as seating, eating, sleeping and majorly working on the desktops, laptops, etc. They are used to hold objects at an appropriate height for work or to store things.
The popularity of home/traditional furniture has strengthened the demand for its manufacturing in India. Over the past years, the utilization of wooden furniture at home has increased. Apart from this, the demand for engineered wood furniture is rising significantly in metro cities and other places too. The reason behind is the rising popularity of ready to assemble work like home furniture in these cities.
Adding more to it, the demand in India for modular furniture is growing exponentially. The development in the housing sector is changing the living standards of the population. The growing trend of home décor and home furnishing with innovative and stylish furniture is the major factor behind the growth of the furniture industry in India.
There are more than a few numbers of market players in the furniture industry. Organizations like Featherlite, Godrej, Durian, and others have a good market presence in the Indian furniture industry.
India furniture market growth is driven by various factors such as rising demand for state of the furniture among the population living in urban cities and fancy seating furniture. The market is forecasted to expand at a rate of 12.91% during the period of 2016-2023.
Moreover, the rising growth of the furniture industry in India compensates the price of furniture. On the basis of these likeable factors, the furniture industry is expected to propel in India. Further, the rising trend of online Various furniture companies such as Woodenstreet, Furniturewalla, Pepperfry, Rentomojo, Urban ladder and others are creating huge demand from these online channels.
The furniture market size in India has increased a lot. Also, the demand for furniture is increasing in the commercial sector. In addition to this, these growing numbers of small and medium businesses further boost the demand for low-cost plastic furniture products. It is believed to foster the growth of the Indian furniture market over the forecast period.
Future Demand of Furniture market in India
Current Scenario of Furniture Market
The furniture buying and rental industry are trying to make the best of the challenging circumstances. With the evolving environment, the furniture industry can speculate online selling and buying through digital marketing to be the key to any industry’s success, giving opportunities to the furniture rental startups.
The basic need of the situation for the Furniture market is to develop an active supply chain response plan to alleviate the risk that the COVID-19 outbreak has caused.
The furniture industry will have to look at various aspects like creating and anticipating new demands through social media, creating campaigns that focus on the industry as a support product rather than an asset, response with risk transparency, analyzing product capacity, need and optimization, logistics capacity, prior booking, route optimization, and supplier management.
Demand and Future of Furniture Market
The new normal work from home has created a huge demand in the market for work from home furniture, helping the furniture rental industry to begin with the business establishment. The furniture in this sector includes desks, chairs, comfortable seating, and multipurpose household furniture.
The furniture industry witnesses a spike in demand for multifunctional furniture as one of the prime reasons driving the work from home furniture market growth. As people are habituated to work on a proper setup with desks and chairs. The new form of working has a high possibility to make people tired and get distracted. Almost 90% of the Indian companies have asked their employees to work from home, this situation is expected to go on the entire year, and furthermore.
India Work From Home furniture market is speculated to grow from a $2.22 billion in 2021 to $3.49 billion by 2026 majorly on a rising number of companies providing an option of working from home to their employees adopting cloud-based solutions.
Consumer preference for premium quality products, increasing urban population, and rising disposable income are a few other factors that are positively influencing the furniture market. It will change the lifestyle of consumers, especially due to lockdown, are some the major factors of Work From Home furniture industry in India.
The India Work From Home furniture market is segmented into Furniture Retail Outlets account for more than 70% of the market share in India WFH furniture market in 2020. The Furniture Market by Competition, Forecast & Opportunities has evaluated the future growth potential of India till 2026.
Conclusion
The Work from Home furniture is an aspect of creation for the rental industry. The market is also anticipating the future of the furniture industry as people are becoming more aware of their home furniture layouts, being able to spend maximum time at home.
The office ambiance and décor plays a very important role in the analysis and definition of the experience of employees and clients in the 21st century. As a business, the ability to display an edge and personality has become a prerequisite. To instill a communicative and collaborative aesthetic to the office space, various realms need to be delved upon. One of the major points of consideration among others is “furniture”. However, in the era of start-ups and small businesses generating pioneering ideas working on tight budgets, the scope of buying furniture which is design specific and unique proves to be a financial nightmare. In such cases, renting is a much safer option than actually purchasing units. Hence, with the varying taste, needs and requirements of consumers, renting furniture has become a millennial need and choice, and RentLite is established to take care of this need. RentLite offers trendy and functional office furniture on rent so that the start-ups and corporates can keep their workspaces stylish and updated without worrying about the budget.
Established in April 2019, RentLite is a path-breaking idea, on the quest of revolutionizing the buying behavior for workspace products. RentLite helps to solve the capital and operating expenses related concerns for young entrepreneurs and corporates alike by letting them take the latest furniture affordably on rent, without the need to spend a fortune on buying furniture. Along with an assortment of design possibilities, RentLite also offers flexible finance options for the users.
The distinct furniture configurations by RentLite like chairs, workstations, and pedestals can be rented for an affordable amount serving the commercial flexibility for its consumers.
Since all furniture rented out is manufactured by India’s leading furniture manufacturer, Featherlite, the consumer has an assurance of uncompromised quality and durability. The vast experience in a commercial design that comes with the association to a brand like Featherlite has further created an effective base of expertise in quick and hassle-free office furniture renting, aiding ease of a Plug and Play setup.
The sustainability quotient has been maintained in all the products manufactured, as RentLite being a new age progressive company, believes in conserving the environment through eco-friendly practices. The furniture is produced in solar-powered factories and produces minimum carbon footprint emissions further reducing environmental pollution.
Kush Jawahar and Kiran Chellaram are the minds behind RentLite.
Besides Rentlite, Khush Jawahar is also the director of Featherlite, which is a leading furniture manufacturer in India. Rentlite is an expansion of Featherlite in the office furniture renting segment. Mr. Jawahar is also associated with several other companies functioning in various sectors.
Kiran Chellaram is currently the Digital Brand Manager at RentLite. An expert in marketing and digital marketing domain, Kiran besides Rentlite is also looking after the marketing tasks at Featherlite
Rental Furniture Sector in India
The concept of furniture renting is gaining popularity and the trend is here to stay. In India, the market for furniture rental is expected to increase to $800-850 million until 2024. In the last 3-4 years, the furniture rental industry has seen a 1000% growth, and interestingly, besides Tier I cities, furniture renting is becoming popular in Tier-II cities as well. Around 15% of furniture rented is for the offices, which shows that there is a huge scope for office furniture renting in India.
Currently, the company is generating a monthly tangible business of over 10 Lakhs. The company intends to expand its affairs to a monthly revenue of 1 Cr. by the year 2020. The courageous plunge in an industry full of competition with such vigor makes it a rather radical business outlook. But Kush and Kiran have proved that to be challenged and take challenges is not a big deal.
In such a short time frame, these young entrepreneurs have already completely furnished two MNCs in Bangalore as well as nine startups in sectors like food processing, construction, recruitment technology, and the aviation industry. They also have MNCs working in financial services, digital marketing, telecommunication services sector in Delhi NCR as their clients.
Pratyusha Srivastava
