Home décor and accessories brand Chumbak, traditionally focusing on sales through its exclusive outlets pre-pandemic, is betting big on the omnichannel model for growing business. The company, which has been witnessing steady traction for its home décor and furniture range since the pandemic in 2020, is looking to expand its portfolio and add more lines of furniture.
According to Vasant Nangia, CEO, Chumbak, sales through digital media, which accounted for roughly around 20-25 per cent of total business pre-pandemic, surged to nearly 90 per cent during the lockdown. The company expects the share of digital and omnichannel sales to settle at around 60-65 per cent, with the remaining (35 per cent) coming from offline channels.
“Omnichannel is the buzzword. Customers would prefer to buy online and pick it up from a store. Retail will serve as touchpoints for customers, and digital online channels will grow faster due to the reach,” Nangia told BusinessLine.
The company is expecting a “high double-digit” kind of growth this fiscal backed by steady demand for home décor and furnishing and supported by its digital approach.
Chumbak, which had close to 70 stores pre-pandemic, has rationalized offline stores and expects to bring it down to around 55 moving forward.
“When you go online and omnichannel, you can manage your inventory better and make marketing spends more efficient and market-specific,” he said.
Expanding product portfolio
The Covid-19 induced slowdown affected sales of lifestyle products and accessories as people were not stepping out as much as they did earlier. However, with people spending more time at home, there was an increasing demand for home refurbishing products. This helped the company post steady sales last year and the early part of this year.
The company’s business, which was equally split between home décor and fashion lifestyle pre-pandemic, has seen a higher tilt towards home furnishing during the pandemic. Home décor currently accounts for 60 per cent of its sales, and it is expected to remain so moving forward.
“We are expanding our product range and our line of furniture. When people stay at home they tend to spend on home furnishing,” he said.
The company is also looking to tap the overseas markets for exports moving forward.