40% of Pepperfry’s new customers now come from non-metro cities: Shubbam Sharrma

Pepperfry has established itself as a leader in India’s home and furniture industry by continuously evolving with changing consumer needs. With a strong omnichannel presence, the brand has successfully integrated its online and offline strategies to offer customers a seamless shopping experience. As consumer expectations shift towards curated, high-quality products with faster delivery times, Pepperfry remains committed to innovation, ensuring its platform serves as a specialized destination for home and furniture buyers.

In an exclusive interaction with Adgully, Shubbam Sharrma, Chief Growth Officer, Pepperfry, shares insights on the company’s growth plans, key challenges, emerging trends, and evolving consumer behavior. He also discusses how non-metro cities are becoming major contributors to growth and the company’s strategy to cater to these changing market dynamics.

What are Pepperfry’s major goals and strategic plans for 2025 to further strengthen its leadership in the home and furniture industry?

Our vision is very clear. Everything we have been doing so far aligns with our strategic direction, and we are highly confident that we are on the right path. One of our primary objectives is to double down on our focus on online growth.

We have realized that curation is extremely important in the online space, especially if we aim to establish ourselves as a specialized destination in the vertical marketplace. To achieve this, we must source supply from every nook and corner, including working with manufacturers to develop exclusive products that may not be readily available elsewhere, such as imported goods.

Our omnichannel presence remains a key focus, along with continuously improving our supply chain and delivery network to ensure faster deliveries. Addressing the growing demand for immediate gratification, we aim to fulfill orders within one to three days wherever possible. In categories like furniture, which are largely made-to-order, we are working on demand prediction and pre-accumulating inventory to reduce delivery timelines, ensuring that customers receive their products within weeks instead of longer waiting periods.

This strategy requires investment, particularly in capital allocation for inventory management. As we continue to grow and receive more investment, we will keep enhancing our capabilities to serve our customers better.

How was 2024 for Pepperfry in terms of growth, challenges, and key milestones?

2024 was a year of significant growth and transformation for Pepperfry. When we started in 2013, the idea of buying furniture online was unheard of—people initially laughed at the concept. However, over the years, we built a strong supply chain, ensuring that we could deliver heavy furniture to 200+ cities while minimizing damage.

A key achievement was expanding our omnichannel presence, with 50+ offline studios across 90+ cities. This has helped build consumer trust, allowing them to experience products before purchasing. Our online catalog now features over 70,000 products, and we consistently update our selection based on consumer preferences and trends.

One of the biggest challenges remains logistics and showroom space—real estate is costly, limiting the number of products we can showcase offline. However, our online platform helps bridge this gap by offering a vast selection while ensuring seamless delivery across India.

Our focus is now on sustainable growth, refining our supply chain, expanding omnichannel reach, and continuing to offer curated collections tailored to Indian consumers.

What were the biggest design shifts that emerged in 2024, and how have they influenced consumer purchasing behaviour?

One of the major trends in 2024 was the rise of multi-functional furniture. Consumers are looking for smart solutions—folding dining tables, coffee tables, and beds with hydraulic storage—to optimize space efficiently.

In home décor, there has been a huge demand for aesthetic and bold statement pieces, such as stylish sofas, metal-finish serveware, and intricate Kashmiri carpets. Consumers want furniture that not only serves a functional purpose but also grabs attention when guests visit.

We've also seen a resurgence in Indian art forms, with people actively searching for products featuring Madhubani paintings, Sanganeri prints, hand-embroidered cushion covers, and Kashmiri craftsmanship. Bamboo and cane furniture, as well as handcrafted marble and terracotta collections, are gaining traction.

Our strategy is to curate collections based on these trends, running focused promotions on our homepage and offering special seasonal selections, such as Valentine’s Day gifting collections, budget-friendly options post-Union Budget, and summer mattress sales.

Non-metro cities are becoming key drivers of growth. What unique preferences and shopping patterns have emerged from these regions?

Absolutely! 40% of our new customers now come from non-metro cities. Some of the top-performing cities include Nagpur, Bhopal, Lucknow, and Ghaziabad.

One key factor driving this shift is social media influence—consumers in Tier-2 and Tier-3 cities are exposed to the same global trends as metro consumers. Whether it’s a celebrity home tour or trending interior styles, their aspirations are now aligned with those of metro buyers.

However, there are some differences:

• Price Sensitivity: Non-metro consumers are more value-conscious and tend to purchase during discount seasons.
• Longer Decision-Making Cycle: They browse extensively and take their time before making a purchase, often waiting for better deals.
• Preference for Local Aesthetics: While they seek global trends, they also have a strong appreciation for traditional Indian designs and handcrafted products.

To cater to this audience, we ensure a mix of affordable price points, curated product selections, and targeted promotions, making high-quality furniture accessible to a broader audience.

The phygital (physical + digital) model has been a game-changer. How has it enhanced customer experience and brand engagement?

The phygital model has been one of the key success factors for this category. It combines the convenience of online browsing with the assurance of offline experience. For example, a customer browsing online might shortlist 50 to 100 products but ultimately selects just five. At that point, they may want to visit a nearby store to physically check the product before making a decision.

We have integrated our digital experience with offline touchpoints. If a customer starts browsing products, our team proactively reaches out to assist them. We provide a special service where, based on browsing behavior, we call customers to understand their needs and offer guidance. Our home consultants connect them to the nearest store. If there is no nearby store, we arrange a video consultation to explain the product as comprehensively as possible.

This approach builds trust and confidence, ensuring customers fully understand the product before purchase. Furniture is a high-involvement category, and personal interactions play a crucial role in the buying journey. We’ve observed that when a new store opens, the percentage of online journeys that get completed through offline channels increases significantly.

In fact, offline conversions stand at 70%, which is a major contrast to online conversions. The average selling price (ASP) also tends to be higher in offline purchases, reinforcing the need for an omnichannel presence. Even digital-first players have started opening offline stores, recognizing that for this category, a hybrid model is the way forward.

With changing consumer expectations, how is Pepperfry innovating its omnichannel strategy to stay ahead of competitors?

Our focus is on offering a curated and differentiated selection. Success in this category is driven by three key pillars:

Curated Supply: We emphasize bringing in both well-known anchor brands and emerging D2C brands. Many D2C entrepreneurs start with a passion for unique products but lack financial resources and large-scale market access. We support them by building a D2C community through events and platform promotions. We invite D2C founders to showcase their products on our platform, help with distribution, and provide complete marketing and branding support.

Retail Expansion: We have over 150+ stores in new and emerging locations. To help D2C brands test their products offline, we provide free retail space in select stores. This allows consumers to touch and feel new products before making a purchase, reducing barriers for both sellers and buyers.

Government & Artisan Collaborations: We are also working with various government agencies to bring local artisans and traditional art forms onto our platform. For instance, Northeast India has numerous unexplored art forms. By partnering with agencies, we ensure that our platform remains the go-to destination for unique and differentiated home décor products.

Additionally, we are continuously improving delivery speed, understanding that modern consumers expect instant gratification. While a 10-minute delivery model is impractical for furniture, we are working towards reducing delivery times. In metros, we aim to deliver within two to three days, ensuring a faster and seamless shopping experience.

How have festival shopping trends evolved in 2024, and what new behaviors have emerged during peak sales periods?

Festival shopping trends have evolved significantly in 2024. Let me highlight a few key trends:

Category-Specific Demand Spikes:

Diwali: Demand for home essentials, decorative lighting, and festive décor surges by 20%.

Republic Day & Independence Day: Consumers plan large furniture purchases to take advantage of special discounts.

New Year: Many customers look to renovate their living spaces, driving demand for sofas, carpets, and wall décor.

Themed Home Makeovers: A unique trend we observed this year was complete home makeovers. Customers no longer purchase single furniture pieces; instead, they look for entire living room or kitchen sets that follow a cohesive theme.

Kitchen Upgrades:

There was a surge in demand for kitchen organizers in January, reflecting a focus on decluttering and optimizing spaces.

The trend of open kitchens is growing in metros, leading to increased demand for bar stools and stylish serving stations.

Rise in Personalized Consumption: Customers now want different sets of products for different occasions. For example:

Separate mugs for morning and evening tea.

Different crockery sets for daily use and special occasions.

Home as the New Social Hub:

Consumers are now investing more in home décor and party essentials as home gatherings become more frequent.

Earlier, parties were held at external venues, but now, people prefer hosting at-home celebrations, driving demand for premium dining and décor products.

Looking ahead, we believe home furnishing and décor will be the next big category, much like fashion and beauty have evolved over the past decade. The pandemic has made people realize the importance of their living spaces, and they are now more willing to invest in making their homes aesthetically appealing.

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