Wednesday, August 27, 2014

Entrepreneurs on Indian Digital Landscape - 4.0

Indian e-commerce is projected to explode from $10 billion to $43 billion in the next five years, according to Nomura's India Internet Report last month. There are 11 categories, and within them 42 players, that are poised to shape this blazing path.

FURNITURE
Furniture is tipped to become the third largest segment in ecommerce, after electronics and fashion/lifestyle. The value of goods sold by leading players is on course to increase 3-4 times this fiscal.

What makes furniture an interesting category, says Niren Shah, managing director at Norwest Venture Partners India, is that it's a $15-20 billion market but consumers don't have many offline choices.
Pepperfry and Urban Ladder are the leaders, the latter recording average ticket sizes of `18,000-20,000. Among marketplaces, Snapdeal has launched, and Flipkart and Amazon are exploring. But they might not find it easy, given that existing players took nearly two years to perfect logistics and supplies.“Furniture is different from all other categories,“ says Ashish Goel, founder & CEO of Urban Ladder. “Players need to build a specialised supply chain and also help in building the manufacturer ecosystem.“ Similarly, Pepperfry is working with manufacturers to build furniture that can be assembled on delivery. The pieces of this segment are falling in place.

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