Goa takes to Urban Ladder

PANJIM: Goa has the highest per capita GDP of Rs 2.24 lakh, which is three times India’s average of Rs 0.74 lakh. The total size of the home furnishing market in Goa is estimated at Rs 300 crore annually. The small organised furniture market in Goa, makes the availability of good quality and aesthetically appealing furniture scarce.

The high disposable income of people in Goa makes it an attractive market. The average ticket size of Goa customers is three times higher than the average ticket size of Urban Ladder customers in other locations. 

“The market was promising even before we entered. We had customers wanting to get their entire house furnished from Urban Ladder,” said Kaustabh Chakraborty, VP Operations, Urban Ladder.   

Urban Ladder launched itself in Goa in January 2015. “The road ahead looks promising. We had to ramp up our team faster than expected to cater to the surging demand for our products. We look forward to Goa being among the top seven cities for us in the coming months, contributing significantly to our overall growth. We see innate potential in Goa and will continue to invest in the market, and ensure we deliver the best experience to make Goan homes beautiful,” said Mr Chakraborty. 

From a trend perspective, it has been noticed that the people of Goa have a strong inclination towards solid wood products and primarily there is a heavy demand for sofas. This is followed by a growing demand for solid wood dining sets, coffee tables and crockery units. Bar, lounge seating and balcony furniture are also doing extremely well in the market. Second home owners form a major chunk of our customer base in the region. 

Urban Ladder’s sharp focus on product thinking and exceptional customer experience, has helped the company carve a niche in the industry. The company’s focus on consumer research shows that every design is thoughtful and built keeping the consumer in mind. Urban Ladder has invested heavily in design thinking offering customers a curated range of 5000 products across 35 categories. The aesthetic sense of people in Goa is closely aligned to the company’s design principles. “Our designs are a blend of form and function, which makes everyday living convenient and beautiful. When we launched in July 2012, we realised that a category like furniture needs special care during transit, assembly and installation. Hence, we built our own supply chain for logistics ground-up, keeping the customer at the core,” added Kaustabh. 

Fuelled by the increasing purchasing power of the consumers, changing lifestyle and increasing urbanization the demand for quality furniture in India is growing. Increased Internet penetration and growth in smart-phone usage are also driving growth. The furniture market in India is highly fragmented. 

Consumers in both small towns and metros are choosing to buy furniture and furnishings online, not only for the discounts but also for the wider choice, quality, designs and after-sales service. The online furniture market in India will grow with a CAGR of 75 per cent and reach the USD 700 million mark by 2020.