Furniture andfurnishing business is seeing buoyant activity.
Bindu D. Menon
New Delhi, Dec. 20
With the retail and real estate sectors resurgent, a slew of players has entered the home improvement business. The furniture and furnishing business, which are primarily destination buys, are seeing buoyant activities as more international players make India their base for future activities.
Industry players have been either expanding their retail footprint or signing up licensing arrangements to cater to the growth. Incidentally, it is the premium segment that has been attracting global behemoths, such as Natuzzi, Chateau D'ax, Landmark group owned Home Centre and even home-grown brands such as Evok to expand its portfolio.
According to a CBRE report, in 2010, India has added approximately 5 million sq ft of retail space and approximately 15 million sq ft of supply is lined up to get operational in 2011-2012. There are approximately 190 malls across India and this number is expected to rise to approximately 280 by the end of 2012. Mumbai, the National Capital Region, and Bangalore will lead the retail space accumulation in the country with almost 70 per cent share in future supply.
The home improvement and assortment business is directly proportionate to the real estate and retail industry. An upcoming supply of approximately 3 million sq ft is lined up for 2011, of which almost 60-70 per cent has been pre-leased to prominent national and international brands.
Marketing pact
S.K. Poddar-owned Style Spa has entered into a long-term licensing and marketing arrangement with premium Italian furniture maker Chateau d'Ax . Under the agreement, Style Spa will set up about nine stores in key Indian markets and establish the brand in the country as a premium furniture retailer.
“India being an emerging economy with high potential and opportunity will provide a platform to establish our brand in the country. The licensing agreement will include shipping products and providing technical knowhow,” said Mr Antonello Colombo, President and CEO, Chateau d'Ax. The two companies will be investing close to Rs 15 crore for setting up the store in the next three years.
Dubai-based Landmark Group has said that strong growth in the retail sector coupled with resumed consumer confidence is helping it to expand its footprint.
The Group, which opened its third Home Centre in the National Capital Region, said that the home adornment and assortment vertical is on an upswing following improvement in the real estate business. There are 12 standalone Home Centre stores pan-India and store sizes typically range from 20,000-40,000 sq.ft.
Destination stores
“These are primarily destination stores. We are looking to set up 18-20 stores in the next two years,” Mr Kabir Lumba, Managing Director, Lifestyle International, said, adding the company will source products from China, Vietnam and Indonesia among others.
Italian premium furniture maker Natuzzi SpA will roll out its two brands – Natuzzi and Italsofa - in India over the next two months and expects to have some 70 points of sales in large cities over the next three years.
The NYSE-listed furniture maker has decided to take the City Model route to operate in India, wherein the company will tie up with city-specific franchisee partners who will invest in setting up the points of sales, said Mr Nitin Bahl, Country Manager, Natuzzi India.
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