 "Vaishali Kaul")
The interior design industry has seen galloping growth in recent years. Delhi-basedM & R Furnishings Pvt Ltd, whose brand, apartment9, debuted in 2007, and is targeted at the top end of the market, recently launched a new range of fabric and furniture, based on traditional Indian and Persian designs, at the Maison et Objet, the premier design show held in Paris. Vaishali Kaul, the company's CEO, tells Rajiv Shirali in an e-mailed response that the Indian luxury shopper has a more evolved taste today, a greater awareness of international brands and an increased desire to own them. Edited excerpts:
What are the reasons for the boom in the interior design industry?
Interior design as a segment is growing at a rate of roughly 60 per cent annually. To a large extent, the construction boom of recent times is responsible for this growth. In particular, we are seeing a lot of demand from upcoming metros and tier-2 locations. Disposable incomes have also risen, further fuelling the desire to spend. Last but not least, the exposure to global lifestyles has led Indian consumers to consciously consider well-designed interiors for a luxurious experience.
How has the slowdown in the real estate sector impacted you?
The current slowdown in the economy has definitely had an adverse impact on the real estate sector. However, our business continues to grow, given the trend of branded luxury residences and customers' willingness to spend on a premium experience. Luxury spending continues to grow in spite of the slowdown. We have over one lakh high net worth individuals (HNIs) in the country today. Nearly 46 per cent of these HNIs are concentrated in the tier-2 cities and semi-urban areas. That is where the demand is being generated from.
How has this industry evolved over the last decade or more?
This used to be an architect-led industry and there wasn't much available in terms of interior design in the past. That has changed substantially. A large number of international brands have forayed into India and the customer also has a larger spectrum of design and products to choose from. The opening of more and more showrooms, exhibition initiatives, etc, have fuelled the desire to have aspirational homes. At apartment9 we are trying to establish trade associates throughout India whereby we can reach the smaller cities and towns in a structured format.
What are the considerations that guide your product innovation?
We cater to the luxury segment. Quality is a top priority for us. In our business, product innovation is driven by factors such as trends, textures, colours, etc. The idea is to introduce something absolutely unique every time. We also need to consider the varied needs of different markets. For instance, homes in Delhi NCR are usually larger and therefore we create hard furnishings suited to the market. Cities such as Mumbai usually have smaller residences and therefore the furniture created and retailed in those markets is more compact, without compromising on utility. We have a dedicated design studio partnership between Delhi and Paris to ensure the best of international designs and product innovation.
What made you turn MNR into a fully vertically integrated company - backward and forward?
We have always believed in design-led manufacturing. Our group has a strong heritage, being one of the top exporters of home furnishings and leather hard goods in the country. We added to our inherent strengths by setting up world-class manufacturing establishments. Today, we have one furniture factory and three textile factories in Noida.
From the sketch-board to retailing the finished product, it is a seamless chain of activities. This integration has ensured a smooth transition into the service industry, where we now take on turnkey interior designing projects of 10,000 sq. feet-plus. We can customise every aspect of a home with the sole focus on what our customers' desire is: be it furniture, fabrics, leather goods, paintings, antique finds, bedroom and living room textiles, or lighting.
What has been your strategy for global tie-ups?
The Indian luxury shopper has a more evolved taste today as compared to a few years back. There is a greater awareness of international brands and an increased desire to own them. Given our focus on quality, we make sure that the best of international brands are available to our customers. We have associations with some of the best brands in the business, such as Sanderson, Arte and Lizzo. We are now collaborating with one of the top luxury interior decor brands, Andrew Martin, UK, to bring its entire product portfolio to Indian customers. The brand is available in over 55 countries and is known for its cutting edge designs and product innovation.
