The Hindu Business Line : Home furnishings go the brand way

Even as Bombay Dyeing tries to consolidate its position in the home furnishings market, brands from Welspun, Portico and Kurlon have made a foray into this segment, smelling an opportunity. Why not, when growth rates are soaring?

THE unorganised home furnishings market is fast getting branded. While brand leader Bombay Dyeing has been trying to retain its dominance in the category, brands belonging to Welspun, Portico and even mattress-maker Kurlon have entered the domain of home furnishings with an added thrust on retailing.

Take the example of Welspun. The major Asian manufacturer of terry towels has made a foray into the domestic retail business with a home textile brand, Spaces. Tapping the not-so-crowded home furnishing segment, Spaces is expected to offer a range of bed, bath, and kitchen and table linen, all specifically for the Indian market. The company exports its wares to 32 countries across the world.

The vertically integrated Welspun had so far restricted itself to towels in the Indian market. With plans of expanding its capacities locally, while also eyeing acquisitions, Welspun wants to replicate its success in the export market by bringing in a new brand just for India.

Deepali Goenka, Director, Welspun India, says: "Currently, the Indian market is dominated by the unorganised sector in the home décor segment. Our focus will be to incorporate the latest fashion trends and contemporary styles in our products so that our customers can never run out of choice. We already have an in-house design studio consisting of a team of highly qualified and experienced designers and professionals who ensure that we offer only the best to our customers."

The advantage of being an export house will help companies like Welspun, as they are constantly catering to the demands of the international market — in terms of trends and designs — and can thus use the expertise for the Indian market. With a plan to capture at least a 30 per cent share in the home segment, Welspun has roped in the services of Ambience Publicis to develop its brand, with an investment of Rs 50 crore.

Another Mumbai-based apparel and home furnishing export company, Creative Mobus Fabrics Pvt Ltd, has also focussed its attention on the fast growing domestic market. Having catered to the international market, the company, whose strengths are in sourcing, designing and manufacturing, has now brought in a home furnishings brand from New York, called Portico, through a licensing arrangement.

To build the Portico brand, the company has appointed Contract Advertising. With an ad budget of Rs 3 crore, Portico will carry the baseline, `There is no place like Home.'

Launching the Portico brand of home furnishings in the domestic market a few months ago, Vijay Agarwal, Chairman of the Creative Group, had said, "Today's Indian woman is discerning and takes pride in her home. She wants the best for her home. It is for her that we have brought the Portico home label to India." Targeting a sales turnover of Rs 20 crore within the first year, the Portico range offers bed sheets, curtains, bath towels and cushion covers through almost 300 outlets across the country. It has also entered into an exclusive tie-up with the Walt Disney Company to sell a kids' range featuring popular Disney characters.

Through a licensing arrangement with Portico Homes of New York, the range for the brand will be manufactured in India and positioned at the premium end of the market. The products will be pegged from Rs 500 onwards and its most expensive bed-sheet will cost Rs 14,999. The company has decided to simultaneously enter the retail market by setting up its own chain of stores under the `Creative Living' brand name.

Creative Living has already launched its first two stores in Bangalore. Apart from selling the Portico range, the stores also stock allied retail brands belonging to other companies. With a product range that includes furniture, crockery and candles, Creative Living is expected to have fifteen outlets across the country in the next two years.

Besides, there are also players such as the Bangalore-based Kurlon Ltd. The pioneer and leader in branded mattress, Kurlon has now decided to go beyond mattresses and is even contemplating getting into retailing in home furnishings. There are plans to launch almost 50 stores under the name of `Kurlon Nests' in major cities by the end of 2005. The company is expanding its range and venturing into soft furnishings and launching bed and bath linen, curtains and towels.

There are also plans to make a foray into the global markets, starting with Sri Lanka, Dubai and East Africa. Claims T. Sudhakar Pai, Managing Director, Kurlon Ltd: "We are looking beyond mattresses and India. To begin with, we intend having a base in Sri Lanka, setting up a marketing and manufacturing unit there."

Jagdeep Kapoor, Managing Director, Samsika Marketing Consultants, says: "There is going to be an upheaval in the home furnishings category with domestic players bringing in international quality home linen. In fact, such players are already gaining share and increasing penetration rapidly and it will get difficult for Bombay Dyeing to have a virtual stranglehold over the market."

And it's not as if Bombay Dyeing has been sitting idle while the new players have been making their entry. Having made a turnaround in its domestic textiles business, Bombay Dyeing has decided to increase its emphasis on brand building rather than rely on promotions to boost its image.

Aloke Banerjee, Head of Domestic Business, Bombay Dyeing, says: "Today, we have made better deployment of our resources and utilisation of ad spends. There are plans to have two-three ad campaigns every year." After having unleashed a Rs 5-crore ad campaign last year, the textile major this year has unveiled its first campaign with a budget of Rs 5.5 crore. Featuring the Gladrags mega model 2004, Amita Hotkar, as the new face of Bombay Dyeing, the company wants to reinforce its dominant position in the bed sheets and towels market.

"It is increasing competition which has made our focus more on brand building than just promotions," says Banerjee. The model for the second mega campaign in eight months has been handpicked by the Chairman's wife Maureen Wadia, who has once again associated herself with the Bombay Dyeing campaigns. With a penchant for working with smaller ad agencies, Bombay Dyeing had appointed St. Luke's Advertising last year while the media buying duties rested with Initiative Media. The company has managed to post profits this year after restructuring its operations, which included rationalising its manufacturing operations and shutting down its unit in Wadala.

The company continues its manufacturing operations at its Bleach Works factory in mid-town Worli in Mumbai, but is on the lookout for new facilities which will help it in further saving of costs.

Explaining the reasons behind the losses posted by the company in past, Banerjee says, "Basically it was due to the restrictive quotas and several costs incurred by the company." With the dismantling of quotas post-2005, Bombay Dyeing is hoping to regain its losses in export turnover as well. At present, exports account for almost 50 per cent of Bombay Dyeing's turnover.

Meanwhile, the Rs 1,000-crore Bombay Dyeing is all set to enhance its image in the textile industry by spending lavishly on promoting its baseline `Bring Style Home.' Adds Banerjee, "We want to project Bombay Dyeing as an aspirational brand and our advertising is targeted at building the mother brand of Bombay Dyeing."

KSA Technopack estimates the bed and bath market at Rs 1,800 crore, growing at nearly 25 per cent per annum. Observes Saloni Nangia, Manager, KSA Technopak: "Just like apparel and footwear, the home linen market is moving from unbranded to branded. In fact, more international brands are likely to enter this market."

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