Online furniture shopping Pepperfry has clocked a total sum of 127.5 crore in FY17- 30% higher than last year through its offline expansion. The surge in volumes has also helped the company shrink its losses from a 17% dip, aided by lower total expenses, which have remained flat at Rs 256 crore compared to Rs 253 crore in FY16.
Reducing its Advertising and Marketing costs
Advertising spends too have been prudent in FY17 — a move that has seen Pepperfry make a solid brand review while keeping the top on costs. The procedure has seen the firm reduce its marketing and advertising costs to Rs 138 crore from Rs 155 crore in FY16.
Pepperfry summons a 60% offer of composed furniture market, on a normal makes net edges of around 45% on items that incorporate home decorations and appliances. Margins from furniture’s, which makes up 80% of its offerings, is at 55%, the organization said. Analysts, however, peg the edges at a more unassuming 25% in the wake of representing shipping costs. The normal evaluating in Pepperfry’s furniture class is about Rs 18,000 with 3,400 items sold every day.