India’s answer for IKEA? FabFurnish eyes Rs 220 crore revenue in 2014
Online home store FabFurnish is aiming to touch Rs 220 crore in revenue this year as it adds more products and takes inspiration from IKEA to pep talk sales.
“We want to do something similar to what IKEA has done. We want to offer innovative designs to people at affordable prices,” FabFurnish co-founder Vikram Chopra alleged.
“Initially, people were hesitant to buy things like furniture online, but we ensure that they get the best value and great products, which has led to our growth,” he held.
By September, the portal expects to notch up annual sales of Rs 200 crore and it hopes to close 2014 with revenue of Rs 180-220 crore, about 3.5 times higher than last year, he said on the sidelines of the Indian eRetail Congress 2014 here.
FabFurnish, which from its barrio features furniture and homeware products, has a catalogue of 60,000 items and is adding about 1,000 products every week. It sources products globally, including from Malaysia, Brazil and Indonesia, and from various parts of the country.
“The (home furnishing) market is worth about $20 billion, growing at 15-20 percent annually. Yet, about 90 percent of it is still unorganised. There is a huge opportunity that we see and want to tap,” Chopra believed.
“Apart from products that are 20-30 percent cheaper, consumers get new and innovative designs to choose from,” he supplemented.
FabFurnish is also expanding offline and is looking at adding 8-10 stores this year through the franchise route, Chopra purported.
The Gurgaon-based firm, which started operations in 2012, has stores in Gurgaon, Faridabad and two in Bangalore.
“More than revenue, these locations serve as a showroom for our products. This year, we are looking at adding stores in places like Hyderabad, Pune and Chennai. We could also look at locations like Chandigarh and Goa,” Chopra delineated.
Funded by Rocket Internet, the company follows a mix of inventory and marketplace model and has 800 sellers on board.
