More people started home decor businesses in the last 5 years. The global home decor market may reach $664 billion, growing at 4.2%. In 2015, the online home furniture market was $39.9 billion, with a forecasted 8.87% growth in the global furnishings market.
In 2014, floor covering led, with Asia-Pacific dominating at 31% market share. We guide you on how to start a successful home decor business. For more on starting a business, check our article on ‘Steps to start a home decor business in India,’ covering things like founder’s agreement and raising initial capital.
Start A Home Decor Business
Traditional brick-and-mortar home decor stores adapt to the modern market by increasing their presence on e-commerce platforms due to high real estate costs. To start a home decor business, a budget of Rs 15-25 lakhs is advisable. Let’s explore steps to kickstart your home decor business for a successful venture.
1. Contact with manufacturers
Partner with manufacturers skilled in creating specific home decor products. Consider factors like proximity, quality, and pricing when choosing. For example, Ghittorni is a popular area for home decor showrooms in New Delhi, so it’s beneficial if manufacturers are nearby for smoother logistics.
2. Showroom at a good location
For a home decor retail showroom, a good location is vital. Ensure essential facilities like ample parking and a clean and welcoming ambiance for walk-in clients. Keep showroom and warehouse spaces separate to avoid customer inconvenience.
3. Employees
Employees are the brand’s face in a physical store, shaping customer preferences and comfort. Courteous staff with excellent customer service skills matter. Simple touches like providing clean drinking water and uniforms, if applicable, contribute to the organization’s overall well-being.
4. Eye on competitor’s products
Keeping an eye on competitors’ products and prices is crucial to thrive in the home decor business. It helps set prices and prevents customers from negotiating based on competitors’ examples. Stay informed to stay competitive.
5. Interstate Tax
For stores shipping across state borders, consider interstate tax margins. Reflect these on the bill when delivering to customers in different regions to account for interstate taxes.
6. Profit Margin
In the home decor business, they are maintaining substantial profit margins. Ideally, 20-25% is crucial. Despite significant sales, this sector faces potential losses from fire, termite, and wood-related challenges. Delayed payments are common, so setting robust profit margins ensures business resilience. Price strategically for profit rather than lowering rates for competition; focus on quality and effective business strategies.
7. Home delivery and return.
Ensure a dedicated delivery vehicle is available for home delivery, with set delivery timings communicated to clients. Consider toll and delivery charges. If your delivery team causes wear and tear, take responsibility and replace items. Though it might impact early on, prioritizing customer satisfaction in after-sales services leads to positive word of mouth and referrals, benefiting your business in the long run.
8. Regular Marketing
Promote your brand locally with a budget-friendly approach. Use mediums like local newspaper ads, radio, pamphlets, and Yellow Pages to spread the word about your retail store and its offerings.
9. Selling on various portals
In the digital age, selling offline isn’t sufficient. Expand by selling on popular portals like Amazon and Pepperfry, specializing in home decor and furniture. Partnering with online brands can significantly boost your business, aiding in growth and success.
10. Cracking commercial deals
Secure significant deals with hotel chains or real estate giants to ensure a high-profit margin. Connect with real estate owners during new projects, showcase your products, and offer favorable deals. In such cases, lowering profit margins is possible as these clients often make bulk purchases. Landing a substantial contract for an entire project can include hundreds to thousands of products, ensuring a substantial business boost.
To Sum Up
Starting a home decor business in India is a growing opportunity. Partner with skilled manufacturers, choose a prime showroom location and train courteous staff. Monitor competitors, consider interstate taxes, and maintain healthy profit margins (20-25%). Ensure reliable home delivery, promote your brand locally, and explore online platforms. Look into commercial deals with major players for added success. With careful planning, your home decor business can thrive in India.
