"International Trade Fair for Furniture Production Technologies, Woodworking Machinery, Tools, Fittings, Accessories, Raw Materials and Products"
According to you, how much is the Indian customer adapting to online retail today?
Online retail is booming. Overall, the percentage is high in metros, although it is gradually increasing in non-metros as well. Because of the current pandemic, people are compelled to purchase furniture online. Due to the multitude of options that aren't generally available in an offline showroom, essential furniture and functional furniture are purchased online. When it comes to luxury furniture, however, customers prefer to have it customized by a carpenter or a factory.
What are the areas where there is room for improvement, and what are the next steps for growth and expansion? Are there any new segments that you’d like to tap in the Indian market?
In the next few years, India's established furniture industry is predicted to grow at a 20% annual rate. We intend to expand at a rate that is both sustainable and faster than the market. We're not just looking for top-line numbers to hit; we're also looking for adaptability, technology advancements, and design enhancements to keep our business developing at a steady pace. Now that all small-scale woodworkers and carpenters have a market, they're attempting to build a business that is heavily reliant on woodworking machinery. To maintain our market-leading position, we must incorporate technological breakthroughs and a broad array of designs to compete with both small-scale and major market players.
Space Wood has a diverse range of product lines, and each product vertical will see varying levels of growth and expansion based on consumer preferences and requirements. Kitchens, office solutions, doors, wardrobes, and bedroom sets are just a few of the categories we've already delved into. Real estate has a large impact on growth and expansion; as the real estate industry grows, so does the furniture industry. The two industries are inextricably linked. For the time being, we have a sufficient bandwidth of product segments and are attempting to reach out to our consumer base through various channels. We can grow and identify areas for improvement by having multiple product lines and a varied customer base.
Which regional market will emerge as a front runner? Which are your strong area in the Indian market right now?
The north of India is the strongest market in terms of retail, projects, and furniture consumption. And the markets in Pune and Bangalore are accommodating when it comes to design, functionality, and new technology. Non-metros are slowly catching up to modular furniture and will soon catch up.
From your perspective. What distinguishes Indian furniture design from that of the rest of the world?
Indians are design-oriented consumers who demand variety in colour and design, preferring it to be customized. A simplistic approach is not widely accepted in India. In terms of furniture, Indians appreciate grandeur and intricacy.
Have you reengineered your product line in response to market and consumer trends? What are the current demands that customers have on furniture manufacturers?
In the Indian market, there is a demand for both functionality and aesthetics. The expectations of customers for furniture products vary and evolve over time. We use market feedback to improve our product line. Built-in storage beds are gaining popularity as practical, space-saving solutions that allow more storage in the bedroom without taking up additional space. Hydraulic beds have been added to the built-in storage beds. Hydraulic storage beds are great not only for small spaces, but also for all sorts of bedrooms since they provide hidden storage space that is easily accessible. People want to save space and be safe, so soft-closing doors and drawers, which were once considered a luxury feature, are now becoming the standard.
Are you witnessing any market shift from a “Consumer Need” perspective? How are you strengthening and innovating to improve people’s work at home experiences?
The new work-from-home and study-from-home lifestyles have prompted customers to regard furniture as a necessary, long-term investment that will support and smooth this transition, resulting in a surge in demand for home office furniture that has never been seen before. Spacewood’s retro table, called X1, has a very basic approach that customers appreciated for its design process. People are spending more money
to create spaces that meet the functional and aesthetic needs of the new normal, which is driving up demand for home and furniture products. As a result, technological improvements have a substantial impact on our sales. Customers are viewing furniture as a necessary, long-term investment that will support and smooth this transition, resulting in a never-before-seen increase in demand for home office furniture.
In terms of technological developments, how far have we come? How advanced are Spacewood doors in terms of technology?
Spacewood is a one-stop shop with its own manufacturing facility. We are on par with any international brand. Our kitchen solutions are comparable to those offered by any major global brand, and we have a strong position in the global market. Membrane pressed, Acrylic, Polymer, Lacquer PU Paint, Lacquer Glass, Glix Glass, Glow
Glass, Laminate, Veneered, and ceramics are all available for the platter from us under one roof.Our product categories are wide, and we are always innovating and upgrading our product line to meet changing consumer demands. Spacewood's technologically advanced doors are made with Japanese technology. It's a result of our technological advancements.
Could you tell our readers about some of the new Spacewood products that have recently entered the market, as well as any other products that you'd want to highlight?
We have a pre-hung door factory with Japanese machines to manufacture Sumai doors with frames and architraves. Sumai doors are unquestionably a collaborative effort on the part of their Japanese counterparts. These doors entirely adapt Japanese technology and aesthetical approach with door materials and manufacturing processes, but they are built for the Indian market with optimum weight and water resistance. For the doors and frames, we use engineered wood (24–72 boiling water proof), and our goal is to de-skill the on-site processes and deliver a completely factory-finished product. It offers a hassle-free process. The doors and frames are totally finished at the factory and have been machined for hinges, locks, and other hardware. The installation service that we provide takes no longer than 2 hours.
We're looking for a mature market and an idea that's ready to graduate. In terms of the quantity of doors fitted, we have increased our scales every year. Despite the
pandemic, we were able to install over 50,000 doors across India. Spacewood doors are widely accepted in India, not just in the metrosbut also in tier 2 and tier 3 cities, where our doors are being installed. We currently serve Maharashtra (Amravati, Nanded, and Aurangabad), Uttar Pradesh (Lucknow), South region (Udipi, Ongole, Vijaywada, Madurai etc) and Chandigarh’stier 2 cities.
How can you leverage new age marketing channels and online platform strategies to disrupt a fragmented and unstructured industry where buyers seek variety?
We have different marketing channels to reach our varied customer base. Direct-to- consumer companies are growing in popularity. We have to adapt our logistics tactics in order to compete and succeed. We are reaching our customer base through our own website, and we are planning to scale up. Digital marketing is imperative to our business. We are trying to generate all our leads through social media. In a previously unorganized business plagued by exaggerated costs, middlemen, and lack of innovation, we were able to meet the unmet needs of Indian clients. As the sector has grown and more companies have entered the market, we've employed technology to improve our logistical operations and create avenues to satisfy consumer needs in better, faster, and cheaper ways.
What are the challenges you face in terms of supply chain and logistics?
The manufacturing industry is still constrained by supply chains and driven by demand. Manufacturing's expansion possibilities are being suffocated by longer- than-ever raw material and capital equipment wait periods, ongoing shortages of crucial suppliers, high raw material costs, and logistical challenges. Manufacturers with a robust supply chain are in a better position to combat these issues head on. An ideal Supply Chain can assist manufacturers with everything from anticipating a downturn in consumer demand to ensuring that they are in the best possible position to meet customer requests. The cost of other furniture raw materials and packing supplies is also growing. To make matters worse, logistics and supply networks all across the world are experiencing shortages.