Furniture retail chain Style Spa is tapping the online space to boost sales, expecting about 10 per cent of its total sales to come from the segment in the next three years.
"We are expecting 10 per cent of the total accumulative revenue from this (online) section in next three years," Style Spa Furniture Ltd Deputy Managing Director D K Jairath told PTI.
An Adventz Group firm, the company runs 115 stores in 67 cities and has a revenue of Rs 225 crore.
"We are looking at 15 to 20 new stores coming up in the next three years. By financial year 2017-18, we would have around 168 stores," said Jairath, adding, "the current revenue is Rs 225 crore and we are looking to double in this period."
According to him, two categories -- modular kitchen and official and institutional furnitures -- would be the key drivers to achieve the revenue target.
The company is also adding two additional revenue sources - exports and supply to various OEMs.
"We have very good prospects in this. Global retailer are trying to enter into India and also large domestic retailers who are so far dependent on imports to sustain in this category, we will look at them for import substitution," he said.
It would also export to Middle East and neighbouring markets such as Sri Lanka, Bangladesh, Nepal.
Jairath said Style Spa would adopt a different strategy for its e-retail segment, where it would integrate its 28 warehouses across the country to its nearest dealers. The last mile delivery would be executed by its nearest dealer.
Style Spa sells European designed furnitures and has a 60-acre manufacturing facility in Chennai.
"Our core advantage is our physical build-up of supply chain distribution network. We just have to embrace the technology and built-up a marketing module," he added.
