We have no plans to enter tier II & III cities: Rajat Mathur, Script
The Business Head of Script says the brand is eyeing sales of Rs 320 crore from its mid premium home furniture in the next three years.
Godrej & Boyce recently launched a new outlet in Delhi’s Kirti Nagar for its furniture brand Script. The store has been launched as part of the brand’s expansion plan.
Script’s first store was inaugurated in December last year in Bengalauru. The company aims to open 18 more stores in seven major cities– Bengaluru, Delhi-NCR, Mumbai, Pune, Hyderabad, Chandigarh, and Kolkata-- by the end of 2020. The brand plans to open five new outlets in Delhi- NCR alone as they see Delhi as a major market. In the coming month, Godrej will also launch its first store in Mumbai.
Talking about the one-year journey of the brand, Rajat Mathur, Business Head, Script, said, “The business has been phenomenal in the last one year, and we’re confident that the brand will become a niche in the coming time”.
The brand is eyeing sales of Rs 320 crore from its mid premium home furniture in the next three years, said Mathur, adding that they expect the Delhi- NCR region to contribute nearly Rs 60 crore as it’s among their key markets. Script is tapping into a market size that is estimated to be around Rs 10,000 crore.
The company plans to invest around Rs 50 crore per annum-- Rs 20 crore on expansion and Rs 30 crore-- for branding and marketing expenses respectively.
Expounding on the furniture industry, Mathur said, “The industry has been growing at a CAGR of 6%, the overall furniture industry in India is estimated to be around 50,000 crore, in which around 60% stimulates to the home furniture category.”
He also said, 80% of the furniture market is unorganized, but it’s gradually improving with the entrants of several players in the market.
Sharing the brand’s core vision, “The entire idea behind the brand depicts the 'new living.' That's what Scripts stands for. We are slightly unique because we believe we have disruptive designs. In this industry, we are the first brand which provides a very premium economy experience”.
Mathur said the brand doesn’t aim to enter the Tier II & III cities.
“I don't think the brand is ready for that,” said Rajat. He also pointed out that besides the traditional brick and mortar format, Script is opting for omni-channel approach to business, “Online gives reach, creates awareness and deliver high level of engagement, whereas offline stores work as an experience centres. Nearly 20% of our customers are digitally influenced”.
Stating an example, Mathur said, “Online players are investing a lot in the offline brick and mortar space because they were not able to sell furniture purely through the particular space”.
In the offline segment, Godrej is looking to open these stores in three formats. The large format stores will be of 14,000-12,000 sq ft, smaller format stores of 6,000-8,000 sq ft. While, the brand will open smaller boutique stores in the 1,500-2,000 sq ft range and afterward, customers would be assisted through technology devices.
In terms of the marketing strategy of the brand, Mathur said, “70% of our marketing goes to the digital. We don’t have plans to invest in television as of now. We have executed hoardings in Delhi from Kirti Nagar to South Extension, we've taken up 20 digital screens as well. Our objective for the next year is to create awareness and engagement. For TV, I think let's have a bigger presence first”.
Speaking about the growing competition in the sector, he said, “Competition will always exist. It's healthy for businesses. Competition pushes each other to raise the bar and giving better services and products are the only way to stay ahead of the curve.”
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