Case Study:
Home Furnishing Sector

Client Name: Confidential
Services Rendered: Skills Gap Analysis, Skills Research, Formulation of Strategy, Planning, and execution of training program.

Week
Turn Around Time
Trainees interviewed
Trainees Delivered
%
Productivity Enhancement
case study home furnishing

Case Study:

Home Furnishing Sector

Client Name: Confidential
Services Rendered: Skills Gap Analysis, Skills Research, Formulation of Strategy, Planning, and execution of training program.

Week
Turn Around Time
Trainees interviewed
Trainees Delivered
%
Productivity Enhancement

Industry Background: The boom in the residential real estate industry over the last few decades has given an impetus to the home décor market. Also driving the growth of this section is an increased consciousness among homeowners for stylish interiors and beautiful indoors.

The home and interiors category has varied constituents as different as chalk and cheese. The home textiles, household hardware, décor items, furniture for home and office, kitchenware, and such related items, constitute this vibrant category. No single item seems to be out of demand going by the housing sector’s growth and urbanization of many cities in the country. The consumption is not limited to new houses but has even crept into the psyche of those consumers who are looking forward to redoing their home or office space as well. These days such redoing is no more a once in a lifetime, one-off occasion but keeps repeating the cycle more often.

Market Size & Growth:
The total retail market is worth Rs 102,750 crore (US$ 17.13 bn) growing at 12-13 percent and is expected to be worth Rs 144,323 crore (US$ 24.05 bn) by 2017. Modern retail is estimated at 19 percent of this total market and is expected to grow at 24-27 percent. Retail expansion grew at 16-21 percent in terms of the number of retail outlets and retail space with same-store revenue growth being around 15 percent.

Market Segmentation:
The category’s three broad segments – furnishings, furniture, and décor, have been growing positively. There is a small shift in market share from furniture to décor during the last couple of years. This is due to the reason of controlled consumption which resulted in spending less on high-value items like furniture. Consumers continued to spend on furnishings as it has been and invested more in upgrading interiors and décor items to get the refreshing look at home and office. The furniture market saw the marginal drop of 1 percent and décor gained with the same since the previous retail report.

The furniture segment contributes highest in the overall market with small furniture like chair, table, stools, cabinets, desks etc. Collection of such items generates volume business for the category. The large furniture items such as beds, sofa set, dining furniture set, large wardrobes, cupboards are high ticket items which require higher investments. The market share of small furniture is 75 percent and that of large is 25 percent.

Home furnishings segment, on the other hand, contributes the lowest share of 26 percent. The segment is further broken into sub-segments of bed linen, towels, and robes, kitchen linen, curtains, upholstery, blankets, rugs, and carpets. Among these sub-segments bed linen has the largest share close to half of the total market. But the faster-growing sub-segments are curtains, upholstery, blankets, rugs, and carpets.

Consumption
It is true that the frequency of buying products in the category has increased over the last decade but the category still remains one among low consumption categories. It is not just because of low consumption appetite but also due to the scarcity of players in the segment on one hand and low penetration of existing modern players in smaller cities on the other hand.

The retail presence of home decor and furnishing brands are more in the south and west. Interestingly north is having the lowest share of store count in spite of being a densely populated region.

Client: A Furniture Manufacturer
State: Saharanpur, Uttar Pradesh

The Issue: The client which approached us is a big furniture manufacturer based out of Saharanpur. The product that he produces is highly driven by man power. He had made a huge investment in the infrastructure. His factory was unique in every sense with everything new and modern. However, the problem faced by him was of trained manpower. There are not enough skilled manpower that could meet the standards of the industry. This was resulting in late production. The situation was really bad and affecting the business.

Solution: We sent a team over to clients location in order to really evaluate the conditions and understand what needed to be done. We could realize one thing for a fact that the manpower had to be sourced locally as knowledge of the regional language was a must. Our role here was to filter and motivate local youth to join the local business and contribute to the economy. Our team soon started their work.

Results:
Total Time: 4 Weeks
Week 1: Campaigning for the company.
Week 2: 16500 prospective candidates collected
Week 3: Filtered and enrolled 2850 Neem Trainees
Week 4: Training started

The client is more than glad that we intervened. His new workforce is producing wonders for him. He is back into the competition and is now ready to take over the market. The customers have also started to recommend his brand for furnishing needs.