Kitchenware Products Market is estimated to reach over Rs 55 billion revenues by FY’2020 and the future growth is expected to be driven by emergence of web aggregators and rise in preferences towards branded kitchenware products.
The Kitchenware market in India is estimated to be about Rs $320 – $360 million, out of which kitchen accessories market is just 18 per cent. The market is highly unorganised with organised players accounting for only 35 - 40 per cent of the market share.
The modular kitchen is expected to witness a significant growth in India due to an increase in the number of housing projects, rising disposable incomes, changes in lifestyle and the emergence of nuclear families.
Exclusive distributorship on decline
In terms of the retail formats, the exclusive distributorship is on the decline and the sales through large general merchandisers are increasing because of the western mall shopping culture in the urban areas. There is a need for more specialised stores dealing in the kitchenware products. These can be in the form of large format ‘category-killers’ or an up-market small size store which deals in specific types of kitchenware products.
Growing via franchising
Many brands focus on franchise model to fuel their expansion plans. George K G, Senior Vice President – Retail, TTK – Prestige, says, “Our business model has authorised dealers, authorised redistribution dealers, modern trade, exclusive franchised brand stores, gas dealers of oil companies, e-commerce and canteen stores department.”
Venkatesh Kumar, Business Head, Gilma, says, “We believe that a consumer can best visualise his/her kitchen through an exclusive kitchen showroom concept and only an entrepreneur (franchisee) will put his 100 per cent effort to grow the business. The franchise model is highly scalable and allows detailed attention towards consumers. This perfect combination works best for us and hence, we have exclusive showrooms operated by franchisees.”