FMS IDM
Study of Omnichannel Retailers
Aditi Mukul Pendharkar, Amishi Jain, Diya Kumar, Meghana Avadhoot Kumthekar, Tavishi Mukherjee
Chosen Brands:
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About Pepperfry FOUNDERS
Pepperfry is India's largest Omni Channel furniture store. Offers a wide range of home
decor products. It operates as a management marketplace connecting sellers with
customers, providing diverse products with seller-determined prices.
Ashish Shah
Vision
To change the way people shop for their homes.
Mission
To provide a wide array of well-designed products to help customers create inspiring
and functional living spaces.
Ambareesh Murthy
How does Pepperfry work?
Pepperfry works as a B2B and B2C business. Small business or merchants, artisans merchandise their
products through a channel, pepperfry. The sellers contact the product management team of
Pepperfry and list their products for online portal.
Once the Product is ordered by the customer it is brought in from the seller to nearby Pepperfry
Warehouse where the quality of the product is demonstrated. Later the product is placed and
dispatched to the customer.
Pepperfry primarily follows the Omni-channel strategy, which permits the customer to place their
order at any time, anywhere and via any device or channel.
Business to Business
Business to Consumer
Strengths Weaknesses
First mover advantage and strong online presence High logistic costs
Wide product portfolio and distribution model Less penetration in lower-tier cities
Strong financial position and backing from investors Long order conversion cycle
Efficient IT infrastructure
Partnership with HomeStop
Opportunities Threats
Technological integration (AR/VR) Copy-cats at the hyper-local level
Expansion through offline stores in Tier-2 cities Environmental sustainability trends
Furniture rentals The offline sales continue to do well with good margins
Competition from new players/unorganized sector
Targeting Positioning
Pepperfry target customers are in the age group of 25 to 40. These Pepperfry positions itself as a leading online furniture and home
are often young professionals and newlyweds who are comfortable decor marketplace in India, employing a comprehensive strategy
with purchasing items online and are stretched for time. to cater to diverse customer needs. The platform stands out
through its wide-ranging product portfolio, encompassing various
Catering mainly to the Middle Class and above, it focuses on styles and price points.
customers with lifestyles revolving around urban dwelling,
minimalism, eco-conscious consumers and luxury seekers. The company has a registered client base of more than 60 lakh
and 17 fulfillment hubs across the country. They deliver to more
than 500 cities in total and receives an order every 15 seconds.
Pepperfry‘s Retail Format
Operates as an e-commerce platform with online retail. Later introduced physical 'Pepperfry Studios' for in-person furniture exploration.
Largest Omnichannel footprint in India with 100+ studios across 40+ cities, contributing significantly to business growth. Franchisee Program launched in
2017 with 20+ FOFO Studios, enhancing customer experience and fostering successful partnerships.
Pepperfry‘s Retail Mix
Place Presentation
Omni Channel Presence Earthy Tones, Vibrant Hues, Theme-
Online via Website and Mobile App based Sections, Visual Stimulation,
Offline via Experience Studios Ambient Music, Tactile Engagement,
Warehouses and Vehicles Subtle Fragrances, Minimal Signage,
Adaptive Interiors Every 6 Months
Promotion
Diverse Advertising, TV, Print,
Radio, Digital, HD Images, Brand Product
Awareness, Trust, Product Designs
Wide Product Portfolio
Personnel
Price Pepperfry's team includes 1000 delivery
Pepperfry, with a 40-45% profit margin, uses referral executives and 250 carpenters who work on
codes, limited-time sales, credit card assembly
collaborations, and competitive pricing strategies Their focus is on uncovering truths and finding
to drive sales. lasting solutions
Efficiency matters here; they believe in working
smart and hard to achieve more with less.
Product
Furniture
Modular Furniture
Furnishings
Home Decor
Mattresses
Kitchen and Dining
Lamps and Lighting
Appliances
Home Utility
OMNICHANNEL ELEMENTS
Online Offline Integration
Internet-based platform Studio concepts at experience centers Enhances overall customer journey by
Website Customer engagement at studios - interior combining the tactile experience of the
Email and live chat design consultants studio with the convenience and variety of
Mobile site and app Merchant and artisan collaboration online options.
Social media presence Quality assurance process - engagement Empowers customers to make informed
AR and VR technology with sellers and professional product decisions through the seamless integration of
photoshoots both physical and digital platforms.
GAPS In Pepperfry’s Omnichannel model
Product Quality Concerns:
Customers have occasionally raised concerns about the quality of products received.
Delivery and Logistics Issues:
Some customers have reported delays in delivery and logistical issues.
Customer Service Challenges:
Pepperfry has faced criticism regarding its customer service.
Product Returns and Refunds:
The return and refund process can be a source of frustration for customers.
Limited International Presence:
Pepperfry primarily operates in the Indian market.
Competition in the Market:
Pepperfry faces high competition from brands like Urban Ladder, which is backed by parent group Reliance, and from Swedish Giant
IKEA.
INDIA
FOUNDER
About IKEA
IKEA, founded in 1943, is a globally renowned Swedish multinational company that has
revolutionized the furniture and home decor industry. Known for its flat-pack, self-
assembly furniture, IKEA has created a unique shopping experience, blending innovative
design with cost-conscious solutions.
Vision Ingvar Kamprad
To create a better everyday life for many people.
Mission
To offer a wide range of well-designed, functional home furnishing products at prices so
low that as many people as possible will be able to afford them.
How does IKEA work?
IKEA has a supply of raw material, product development, product
design, production, and processing manufacturing, sales flow, and
B2C
customer services.
IKEA has a comprehensive market survey every three years about
the customer’s feedback on the product. They try to reduce costs by
using eco-friend materials like recycling raw materials of wood
instead of cutting down forests. With the development of new
technology, it has successfully found a way to gas injection
composite plastics.
This has two motives attached- one, to use a lesser amount of
material, and two, to reduce the weight of products leading to a
faster production of products. They first focused on making custom-
built properties align with developing new retail stores.
Strengths Weaknesses
Customer knowledge Negative publicity
Use of innovations to drive down costs Decreasing quality- IKEA has taken to using cheaper alternatives
Supply chain integration of less quality
Brand reputation and market presence Standard products: IKEA deals with standard products, so
Diversified product portfolio customers in need of customized goods have no place shopping
with the company
Opportunities Threats
New markets in developing economies: Retail markets have the Intensifying competition in the industry
potential for growth and expansion in developing economies. Growth of consumer income: IKEA is all about offering low-quality
Expansion into the growing grocery market: The company could products, which are only attractive to people trying to cut costs.
profit greatly from going into the grocery business.
Targeting Positioning
Ikea serves the unique functional needs of each target audience, IKEA uses the following types of product positioning:
with special attention to 16-34-year-old adults.
Mono-segment positioning- It appeals to the cost-conscious
It has solutions specifically for Bachelors, Single customers, newly single customer segment.
married couples, older married couples with dependent children, Adaptive positioning- Repositioning products and services to
students, professionals etc. adapt to changes in customer preferences. Its Swedish furniture
chain considers the dynamic nature of customer preferences.
IKEA‘s Retail Format
Operates as an e-commerce platform with online retail. Later introduced physical 'Pepperfry Studios' for in-person furniture exploration.
Largest Omnichannel footprint in India with 69 Studios across 28 cities, contributing significantly to business growth. Franchisee Program launched in 2017
with 20+ FOFO Studios, enhancing customer experience and fostering successful partnerships.
IKEA India‘s Retail Mix
Presentation
Place
Maze-Like layout, Catalogs and
Strategic Location Choices
Brochures, Clear, Informative signages,
Omni- Channel Approach
Interactive Displays, Cafeteria and
E- Commerce Investment
Food Market, Sustainability Messaging
Flexible Fulfillment Options
Adaptability to Local Markets
Product
Promotion
IKEA offers 10,000+ products
Consistent Brand Theme Customizable
overall alongwith certain services
Product Range
Affordable and Durable Products
Strategic Partnerships
Personnel
Inspiring Product Presentation:
Employees enjoy the benefits of extra
contributions to their pension funds, and a
Price
variety of internal training programmes.
Affordable pricing- reduced operational, handling, IKEA provides a meaningful wage to their
shipping costs and efficient storage. employees that supports the cost of living and is
Competitive Pricing- monitors competition and adjusts the first large retail employer to commit to
accordingly paying the Living Wage
OMNICHANNEL ELEMENTS
Online Offline Integration
Shopping Lists Click & Collect Service Mobile App
Registration Large & Small Stores AR Technology
Interactive Catalog Compare Styles & Prices Virtual Walk-Around
360-Degree Views and videos First In-House Assembly Team Visual Search Engine
AR Scanner Realistic Room Settings Convenience Enhancement
Discover More Prompts Interaction & Exploration Contactless Shopping
Online Consultations/Planning Scan and Go Feature
Click and Collect
GAPS In IKEA India‘s Omnichannel model
Accessibility:
Limited presence in a few tier 1 cities.
Affordability:
Major furniture expensive for the middle-class.
Higher footfall for smaller items.
Customization & Cultural Mismatch:
Lack of personalization options.
Proudly Swedish products might not align with Indian tastes.
Shopping list can be accessed both online and in-store. Shopping list can be accessed both online and in-store, and can
360-degree Room View. also be shared with family members
DIY kits are available AR-VR applications enable one to see how a product appears in
Videos that emphasize the use of sustainable materials play in- room view
store Online consultancy
Life at Home Report - utilizes the international reach of the
brand
Online consultancy and services
Click & Collect service Studio Concept
In-house furniture assembly (only in Hyderabad store) Customer Engagement at Studios
Realistic in-store experience Merchant Artisan Collaboration
Assistance from in-store team Quality Assurance Process
Mobile application Receive prompts online to check out offline stores
AR technology within the store Experience of studios offer the convenience and variety of online
Virtual walk-around and interaction stores
Visual search engine
THANK YOU
