Pepperfry closes FY19 on the back of advertising spends worth Rs 170 crore

The online retailer upped its ad spends by over 88% in FY19 when compared to the last fiscal

e4m by Misbaah Mansuri
Updated: Jan 6, 2020 8:46 AM
Pepperfry

For online furniture and home products marketplace Pepperfry, one of its biggest expenses, almost 43.7% of total expenses was advertising and promotions in FY19. The company upped its ad spends by over 88% in FY19 when compared to Rs 90.78 crore in FY18, according to data accessed from business intelligence platform-Tofler.

The brand reported its revenues for the financial year 2018-19 as Rs 207 crore, a 47 % jump since the last financial year. The company further reported a net loss of INR 183 cr during the same fiscal. This is a 72 % increase from the last financial year. The company’s total expenses for the fiscal were reported as Rs 390 crore.

To be sure, Pepperfry has been quite aggressive in terms of its marketing. The company which started by focusing heavily on television is now seen capitalising big on digital. “In 2020, a prominent trend will be the utilisation of machine learning to filter audiences for targeted campaign outreach. Implementation of machine learning in campaigns will help brands to improve both targeting and messaging by marketing to micro-segments with very well-identified needs or interests. At Pepperfry, too, we have begun dabbling in these areas in a more systematic manner, which has led to higher rates of traction on key metrics, therefore, I think that these practices will be wide-spread among marketers in 2020,” Kashyap Vadapalli, CMO, Pepperfry recently shared with exchange4media.

At the acquisition stage, the retailer runs performance marketing campaigns targeting potential consumers through varied mediums. For conversion, Pepperfry utilises various tools such as cash-backs and coupons, which aid in pushing the consumer towards the transaction. The brand also leverages push notifications, emailers and traditional campaigns and keeping consumers engaged through content-led pieces which integrate the brand into a plotline.

Since its inception, Pepperfry has chosen to use content marketing with platforms such as Miss Malini, Girlyapa, TVF, Dice Media, among others which helped the brand build its digital presence. Traditional mediums, too, play an essential role in the marketing mix wherein a big portion of the spends of the traditional bucket is allocated to television, especially for seasonal promotions, such as Diwali and Independence Day, etc. Radio and outdoor advertising also play the role of support mediums in large campaigns.

Founded in January 2012, Pepperfry has raised $197.5 million so far and is backed by Goldman Sachs, Bertelsmann India Investments, Zodius Capital, State Street Global Advisors and Norwest Venture Partners.

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