HOF Furniture System plans overseas retail expansion

Even as it forayed into e-commerce with the launch of its new online platform 'sittingculture.com', Ahmedabad-based premier furniture brand HOF is now planning overseas retail expansion. After opening a store in Kathmandu in Nepal, the company is looking to open stores in Asian and African markets.

With 'www.sittingculture.com', HOF has entered the e-commerce space in partnership with 'Ecumen'- a leading e-commerce consultancy and digital marketing agency. While HOF would be offering its products, Ecumen would be involved in maintaining and marketing the platform across the country.

Sittingculture.com offers specialised ergonomic chairs in categories like premium, professional, and students. This portal will make HOF products available across 70 per cent of India through the tie-up with their logistic partners FedEx. Interior Designers & Architects can also browse through the products and share them with their clients, straight from the site. The site also offers multiple payment options apart from regular, customers can also buy products on EMI.

The cloud-based website will offer chairs in the price range of Rs 3,000 to Rs 1 lakh.

"We had opened a store in Kathmandu and are now planning to open more stores out of India in Asian and African markets. On the other hand, the platform will help us to reach even places where we do not have any stores," said Kunal Patel, director - exports, HOF Furniture System Pvt. Ltd.

According to Patel, the company is also in talks with European and US based brands for potential tie-up for sourcing of furniture in near future. "These brands are looking for a second sourcing option after China and want to make India a manufacturing hub. We are still in talks and are yet to figure out what kind of partnership to enter into," Patel added.

When asked about potential manufacturing capacity expansion, Patel said that the company has an installed capacity of 2000 chairs per day at its Ahmedabad unit whereas the current capacity utilisation is that of 500 chairs per day.

"We will expand whenever the need arises to do so," Patel said.

The total chairs market in India is estimated to be around 2 million of which organised market's share is around 20-30 per cent. According to Patel, of the total organised market, HOF has around 5-6 per cent share at a turnover of Rs 30 crore. The company is growing at a CAGR of 15 per cent, Patel said.