Homegrown brand Royaloak Furniture plans to invest ₹400 crore towards its domestic and international market expansion this year. The company’s growth plan will see the expansion of its retail presence to 300 stores and the entry into 100 markets overseas in the current year, according to a top company executive.

Having inaugurated its first store in Bengaluru in 2010, the company has since grown its footprint to 200 stores. Currently, its stores’ are largely seen in tier-one cities including Bangalore, Hyderabad, Chennai, Delhi, Mumbai, and Kolkata, and it now aims to go bigger both globally and domestically, noted Vijai Subramaniam, chairman, and founder.

Additionally, the company has recently started exporting to over 50 countries, with a focus on the Middle East, the United States, Japan, Germany, and Australia. “In the next three years, we expect to see 25 per cent of the overall business come from exports,” he said.

Furthermore, it anticipates that exports could result in cost efficiencies, ultimately enabling more competitive pricing, aligned with the company’s core aim of affordability.

“We will be setting up stores in key locations, focusing on both tier 1 and tier 2. The plan is geared towards district-wise expansion, aiming to establish more stores in various districts instead of solely concentrating on the three major cities. In three years, we want to be 500 stores strong,” he explained.

Currently, half of the company’s stores operate under a franchise model, and this ratio is poised to remain unchanged moving forward, with 50 percent franchised and 50 percent company-owned outlets.

In the competitive landscape alongside brands like Wakefit, Urban Ladder, and Pepperfry, the brand is present in various furniture verticals, spanning sofas and recliners, beds and bedroom accessories, dining, office furniture, outdoor furniture, and home décor.

The furniture brand claims to have crossed ₹1000 crore in topline last year. Speaking about category contribution, he said, “Home furniture is 60 per cent, the decor is 20 per cent, and office furniture is 20 per cent.” The brand holds a leading position in the office furniture sector, with expansion plans focused on augmenting its office furniture offerings.

Royaloak isn’t directly involved in the manufacturing of the products, instead operates with local manufacturers and supplies products on an international scale, spanning various regions within the country. “We are working with close to 200 suppliers, and keeping in line with our expansion plan, we will add another 100 factories in the current financial year,” he added.

With regard to category-driven expansion, this year will see a particular emphasis on mattresses. Currently offering 3000 stock-keeping units (SKUs), it aims to expand this inventory by an additional 1000 units. The brand showcases designs through its seven-country collection which includes America, Italy, Germany, Vietnam, Turkey, Malaysia, and India.

Related Topics
comment COMMENT NOW