Wallpaper Brands in India

A study on wallpaper industry in India.

1. Robin Chhabra GLOOB DECOR WALLPAPER BRANDS, BUSINESS MODEL AND THEIR PROS & CONS

2. Wallpaper Market overview The concept of wallpapers has been around for quite some time, but the trend recently picked up the pace. Wallpapers include various finishes like metallic, silk, jute, vinyl, mica chips etc and designs and prints in geometrics, floral, stripes, 3D color changing designs etc. Today in India, spending on interiors has tremendously increased with aspirations to have home interiors like in the west where wallpaper is the most sought after product in home decor. Its preferred across homes, offices, hotels, hospitals and retail chains. The overall market size for wallpapers is INR 250 Cr. and out of which 60% is dominated by unorganized players.

3. Wallpaper Existing Brands Gloob Décor – (Upcoming Market Leader) Marshalls Elementoo D’decor Others

4. Gloob Decor India’s fastest growing home décor brand  Passionate endeavor by successful entrepreneurs from IIT India’s first multi-category, design and production lab in the space of home improvement USP of offering wide range of customized designed wallpapers and other home décor products ONE AND ONLY ORGANISED WALLPAPER MANUFECTURER/BRAND IN INDIA Legacy continues…

5. Gloob Decor Business Model Distributorship/Franchisee– 30 lakh Investment/Min. 3000 Display Sqft space/Prime location Dealership- 12 lakh Investment/Min.1000 Sqft . DisplaySpace /Prime or Decent location Retailership - 5 Lakh Investment/Min. 300 Sqft display space/Decent location

6. Marshalls Wallpaper specialist company in India since 1975 Adopted the franchise route to carry forward its business Boasts about 45% market share in wall decoration products Stopped their manufacturing unit in I ndia long back and now importing only Deals in wallpapers/wall coverings only Importing more than Six wallpapers foreign brands like Omexo , Grandeco , LSI etc. Customization is provided only for big projects

7. Marshalls’ things to talk about 45 showrooms in India out of which 14 showrooms in Mumbai 2 flagship showrooms of 10000 sqft each, Exclusively Imports its entire collection from the World’s largest and most renowned manufacturers like Marburo , Rasch , Lanark, LSI, Omexco , Grandco etc..

8. Marshalls’ Franchise Privileges Show Room Space : Minimum showroom space of 350-400 sft carpet area is required. Exclusivity: An exclusive arrangement that retailer cannot market any other range of wallpaper. Intellectual property : Rights to use the brand logo and any Intellectual property shared with the intention of using the same in the assigned premises with prior approval at any interval of time during this association lies with the brand. Backend Support : Marshalls entire working is through its cloud operated software which gives franchisee freedom to operate sitting anywhere. Operational Cost : All expenses incurred toward maintaining / running of the premises i.e. electricity, telephone, rent, staff salary etc. will be undertaken by the franchisee. New ranges : launched during the course of the year has to purchased as per the subsidized catalogue pricelist. Security Deposit : The franchisee has to issue an security deposit of Rs.200000 which is refundable without any interest on the termination of the franchisee agreement. Area of Operation : Franchise is not constrained for selling our product range in any particular area, but can sell anywhere in India.

9. Marshalls’ Franchise Business Model Investment break up Amount in Rupees ( i ) Cost including franchisee fee & catalogue cost(+VAT 5%) 6.95 lacs (ii) Showroom Decoration & Set up Costs approx. 4.5 lacs (iii) Inauguration Cost 1 Lacs (v) Security Deposit (Refundable) 2 Lacs Total 14.80 Lacs Investment break up Expected monthly operational cost Amount in Rupees ( i ) 1 Showroom co- ordinator + 1 Peon 20,000 (ii) Petty Cash; Staff Welfare + misc. Showroom Expenses 5,000 (iii)Recurring costs like electricity, telephone, municipal premises Outgoing and others. 10,000 (iv)Rent 35,000 Total per month (MOC) 70,000 Since the agreement is for 3 years the cost is proportioned for 3 yrs. Hence apportioned cost p.m. (MOC)= Rs.36000 (deposit not considered) Total Costs : CII + MOC = Rs. 36,000+ Rs.70,000 = Rs.1,06,000 p.m.

10. Marshalls’ Franchise Business Model Amount in Rupees Minimum Sales estimated in the 1st year 72,00,000 Gross Annual Commission @ 30% 21,60,000 Less : Customer Discounts 2,16,000 Less : Expenses (Fixed cost + Variable Cost) 12,72,000 Net Income in the 1st Year 6,72,000 Return on Investment Minimum 30% YOY (Year On Year ) growth is projected i.e. 2nd year onward

11. Elementoo Deals primarily in Wallpapers only rest designer paints and Italian Furniture are displayed only in 2-3 showrooms Only Italian wallpaper ranging from Rs.80 – 4000 sqft . Catalogues ranging from 45 -50 but only 30 albums are active. Channel network of 40 distributors and 30-40 in Delhi only and more than 100 dealers pan India. Anyone can become a dealer by purchasing only the catalogues.

12. Elementoo Business model No Fixed business model – initial investment requirement can be 1.5 Lakh (Cost of 30 Albums) Dealership margin is 50% 6 -12 months is given to a dealer to meet the company’s expected sales target No Space requirement, Company can provide some free wallpapers for the display. Running a dealership scheme of 5 Lac Investment : 2 Lac for Albums + 3 lakh as rotating advance 60% Margins for this investment

13. Pros & Cons Pros: Fast growing industry Growing wallpaper culture High margin product Entry of organized players Easy to differentiate our brand Cons: Availability of cheaper alternatives Highly dominated by unorganized players

14. Thank you