The consumer demand for branded products will continue to grow
Arun Bhawsingka talks about the market for branded home textile products in India with Fibre2Fashion correspondent Mary Christine Joy.
Synopsis:
Launched in 2004, Portico New York, a wholly owned subsidiary of Creative Portico Pvt. Ltd., is the company's flagship home styling solutions brand. The company won the DuPont Award for Packaging Innovation in 2009 for its eco-friendly packaging.
Arun Bhawsingka, a veteran in the retail industry, has held enviable positions in his career spanning 25 years. Before taking up the mandate of CEO to Creative Portico Pvt. Ltd, which owns the home luxury brand Portico New York, Mr. Bhawsingka served as the Vice President of Domestic Retail at Bombay Dyeing. He was also associated with retail giant Raymond Apparel Limited as the General Manager.
Excerpts:
Portico New York is one of the leading brands for home textiles in India. Can you tell us some of the secrets behind your success? What have been your strengths as a company?
Portico New York's biggest strength is our belief and commitment to taking home textile products to the level of fashion products from the traditional approach to it as a commodity product. Our designs, continuous product innovations, association with designers, advertising, everything is in sync with this vision.
You are an ardent supporter of "geographical reach" when it comes to marketing products, isn't it? How much of importance do you give to proximity when it comes to marketing home textile products?
Home textile products are very locally purchased items. One would never drive 10 kilo meters just to buy a bed sheet, although one can drive 10 kilo meters to get a wedding suit designed or get a fashion dress. So, proximity is important! Local availability is important! And it is in this context that we are expanding our geographical reach.
Contemporary selling mediums like online retailing help in this regard. We are present in almost all the leading e-commerce sites, and are expanding our presence continuously.
Plans to open new showrooms are in full swing. Do you find opening showrooms in the country profitable? Or would you prefer exporting your products to other countries?
Our entire focus is on the domestic market, but we are looking at options in the Middle East and Southeast Asia. India is a good market for home textiles.
You have worked for several leading brands in the past. What makes Portico New York special as compared to the rest in terms of management?
Creative Group is one of the most respected and established textile group in the country and operates under the dynamic leadership of Vijay Agarwal who is a gem of an individual and a wonderful, motivating leader who believes in the ability of his team members.
I would like to quote one of your earlier statements, "Goa is a huge market and customer base for us". What makes Goa special? What potential do you see in this market?
Goa is fast developing and many people are buying or building their second home here, to be used as holiday home. Also, with tourism, Goa does offer a big opportunity for home textile products. In fact, just a few weeks back, Portico, New York has opened its first EBO in Goa.
Is India a good market for branded home textiles? Are Indians shifting to the use of branded products or is the unorganized segment still dominant in the country?
Absolutely! It has the maximum potential because 90 percent of the home textiles business in India today in unbranded, but consumers would prefer branded products. So, if branded products are made available, they will go for it.
As a number, the unorganized segment is dominating. But in terms of growth, branded home textiles are way ahead. The average growth in home textiles category is 8 percent per annum, but the average growth in branded business would be more than 25%.
Which sections in home textiles are expected to see immense sales in the future in India? For example, we believe that you seem to be optimistic about the bed and bath sections in home textiles for the future.
Bed and bath is the maximum volume contributor in home textiles, and so I am optimistic about its sales in the future.
Home is becoming a place for peace and relaxation, and people don't mind spending a little more if the product is nice and if it makes a statement of their individual identity.
You have your own notions for an ideal fabric material in home textiles. Can you let us know which fabric material would you prefer for home textiles and why?
It will only be cotton because the Indian weather is conducive to cotton. So, cotton is the most suitable fabric material for home textiles, since it comes in touch with the body.
Combed cotton gives a little extra soft feel and sheen to the product. So, depending on the price point, its use can be recommended.
Out of the two segments - premium segment and value segment, products of which segment are expected to see growth in India? What are the market demands in this regards at present and how is the market expected to behave in future?
Both will grow in the branded segment. Value segment will see substantial growth because of Large Format Stores and alternative selling channels like e-commerce. And the premium segment will grow because of the consumers need for innovative and fashionable products.
In the current scenario, the value segment undoubtedly holds a larger share of the market. It is way ahead of the premium segment.
With general elections round the corner, I would like to know how do you suppose will the Indian retail sector behave in coming years? Do you suppose that a change in government will change the entire outlook of the retail sector in India?
The organized retailing segment in the country will keep on growing, because the consumer demand for branded products will continue to grow. What the consumer needs is a product with a brand on which he has faith for quality and price and which satisfies his needs.
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