We expect Tier 2 and 3 cities to drive growth for us in 2023: Pepperfry’s Kushal Budhia

The year 2023 has started on a rollercoaster note, with an accelerated adoption of generative AI, AI chatbots, and digital innovations. This is bringing in new operational efficiencies, stronger strategies, a far greater emphasis on building deep bonds with various stakeholders and consumers. In keeping with the current market ecosystem, technology and a human approach are seen as going hand in hand.

As part of our annual TRENDING NOW series, Adgully has been approaching key industry leaders to Crystal Gaze into 2023 to highlight the major trends and developments that they see dominating the industry in the year ahead.

In conversation with Adgully, Kushal Budhia, VP - Head of Furniture Business at Pepperfry, speaks about furniture demand trends in India this year, the important roles of technology, customisation and personalisation, focus on Pepperfry’s D2C private labels, and more.

Key trends dominating the furniture industry in 2023

Furniture demand in India is very heterogeneous, where the choices of the customers are very varied. Therefore, it becomes important to provide a wide array of products that matches with the latest trends in the industry.

As a leading player and one of the largest marketplaces in the furniture industry, Pepperfry is closely monitoring the latest trends and developments that are shaping the future of this industry. In 2023, we anticipate that several key trends will continue to dominate the furniture industry and shape its trajectory.

Technology will play an increasingly important role in the furniture industry. With the rise of e-commerce and online shopping, customers are demanding a seamless and convenient shopping experience, which can be provided through the use of Augmented Reality (AR) and Virtual Reality (VR) technology. This technology allows customers to visualise how furniture will look in their space before making a purchase, making the shopping experience more immersive and interactive.

Omnichannel presence for the furniture players has been gaining significant prominence. Customers want to see and compare the products online and also experience the same at the stores. One without the other restricts the customer’s buying experience. Therefore, it has become important to engage with the customers with an immersive experience on both channels.

Customisation and personalisation will continue to be major trends in the home goods space. Consumers are increasingly looking for furniture that fits their unique tastes and preferences, rather than settling for generic designs. In response, brands are offering more personalised and customisable options, such as modular furniture that can be easily rearranged to suit different needs.

At Pepperfry, we are committed to staying at the forefront of these trends and providing our customers with the best possible shopping experience.

Major expectations from 2023

There will be heightened demand for wood furniture due to its natural and aesthetic appeal. It is anticipated to contribute to the overall furniture market. Also, the demand for home furniture, fuelled by rapid urbanisation, will aid market growth. It will be bolstered furthermore with multifunctional furniture spearheading the industry. Customers are looking to avail options for upscaling their living spaces and improving their standard of living. Personalisation will also be a significant trend. Customers are increasingly seeking furniture designs that match their unique preferences, and we expect industry players to offer more tailored options.

Moreover, technology will continue to play a significant role in the furniture industry, especially in e-commerce, where customers are seeking interactive shopping experiences. We foresee the adoption of augmented reality (AR) and virtual reality (VR) technology to drive customer conversations that will help them visualise furniture items in their spaces before purchasing, further enhancing the online shopping experience.

Additionally, improved customer experience through engaging methods in both online and offline channels will enable a holistic buying experience for them. Further, after-sales support and additional services like maintenance will be winning propositions for both.

Key focus areas for Pepperfry in 2023

Pepperfry is passionate about pushing the boundaries of technology, which is why we will continue to invest in it. We will be betting big on our D2C private labels and expanding our business portfolio. Our fundamental proposition is variety and the confluence of private labels, and the marketplace will add to our business growth. Our retail footprint with over 200 Studios in over 100 cities will also play a significant role this year. We expect Tier 2 and 3 cities to drive growth for us as these towns are expected to contribute a lot more going forward as customers in the cities are affluent and would want to buy online from brands such as ours.

Through our marketplace platform with 75k+ listings, we want to focus on ensuring that Pepperfry provides the most extensive choice of products and also keep up with the latest trends globally.

Pepperfry has been one of the pioneers in the furniture vertical to introduce AR functionality on its platform. We continue to focus on immersive technology such that the customers are able to engage with the product and also experience it at our studios.

Additionally, the focus of Pepperfry will be on providing excellent customer service not only during the buying journey, but also after-sales support.