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Nowadays, modular kitchens are so designed as to host an array of technologies as well as function as an integral part of the home. This has obviously led to growth in the kitchenware segment by Khusnuma Parween.
Kitchens are no more dingy corners that are a woman’s abode – today they have become places to socialize and to celebrate; hence open kitchens with island units are serving this purpose. With exposure to global lifestyles and cultures, our own lives are changing. This changes the way the new-age customer looks at kitchens – from open kitchen with built-in appliances to a lounge where one can socialize. Given this fact, the kitchenware market in India is on an upward spiral, currently estimated to be in the range of Rs 5,000 crore with an estimated growth of around 15%. An average Indian customer spends anywhere close to Rs 3 - 5 lakhs on kitchenware with the premium range buying kitchenware up to Rs 25 lakhs.
Modular Kitchens in Demand
The modular kitchen has created the maximum demand because of its unique configuration that can suit any situation. It has opened ways to fit even smart technologies, including smartphones, induction chargers and laptops that transform the look of a boring kitchen to making it professional and modern.
“The modular kitchen is now a popular concept with the ability to use the designed space for multiple usages like storage, cutting, chopping, cleaning, serving station, etc. It also acts as a meeting place during social gatherings,” says Subodh Mehta, Senior VP-Sales and Marketing, Godrej Interio. The company has a presence in 150 locations across India.
Dip in Dealership Model
In the era of scientific treatment, the showcase of products and appliance is non-negotiable. Thus, the traditional way of doing business to fulfil customer needs is now falling by the wayside. Customization has become the need of the hour. Companies have to showcase their entire range of kitchen appliances and organise detailed in-store demos of the products, which help consumers make informed choices of their purchases. In the dealership model it’s quite a challenge.
“We lose customers not become they are unable to buy what we sell. The ignorance certainly does. In our in-store stores customers are very well-informed about their purchase unlike dealership sales,” says a spokesperson for Evok.
Growth via Franchise Model
The players in the segment are betiinmg big on the franchise model. For instance, Evok, a prominent player in organised furniture and modular retail kitchen is planning to add another 150 outlets on a pan-India basis in the next 2-3 years through the franchisee route in Tier II and III cities. The franchise model also allows better penetration and access to newer markets and distribution networks.