Indian online furniture market place Pepperfry is looking forward to offer furniture for rent to increase its customer base and also to strengthen its customer base. This furniture rental service will be available in Mumbai, Bengaluru, Delhi, Gurgaon, Hyderabad, Pune, Chennai, Noida and Ahmedabad.
Pepperfry Expects to cross $1.1billion
The homeware and furniture online retail market is expected to cross $1.1million in revenues in 2017 from $900 million in 2016 according to Forrester research. “Furniture rentals are not a big market but it helps create volume. This is a channel for customer acquisition and enables conversion over a period of time, “said Satish Meena, Senior Forecast Analyst at Forrester Research.
Pepperfry Competes with Furlenco, Rentomojo, CityFurnish,
Pepperfry’s attack into the rentals space will see it contend with Furlenco, Rentomojo, CityFurnish, among others. A standout amongst the most unmistakable players in the space, Furlenco clocks on normal ticket size of Rs 3,000 and is hoping to make back the initial investment by March 2018. For its business commercial center, Pepperfry clocks an average request estimation of Rs 18,000 and gloats of a 4 million in number client base. Its rental offering will offer around 1,200 of its 14,000 stock keeping units for lease alongside free conveyance and assembly service.
Pepperfry Offers less Frequent Selling Items
The Goldman Sachs and Bertelsmann-backed firm will also offer its less frequent selling items and inventory from its offline studios for rent. “The potential conversion to sales is high. I think we will have close to 95% conversion to our buying customers when they come of age. We will be profitable in 12-15 months, or by FY19-end if our growth trajectory continues, “said Murty.