furniture online business

1. Fabulux Furnitures
Presented By:
Abdullah Mehmood, M Bahauddin, Awais Khalid,
Zubair Nisar, Aqeel Abbas

2. Executive Summary
• Fabulux Furnitures is a bricks and clicks business
• Sells premium Wooden Furniture for Homes and Offices
• It is developed to give its Customers the ease of purchase from their Homes and also from
Our outlet.
• It is one of a Kind Online Furniture Store in Pakistan which is offering Customize Your
Own Furniture on its website.
• Fabulux is located at Y-Block, DHA and Manufacturing Plant at Chiniot City.
• Fabulux is a B2C Business.
• Fabulux is a member of “Pakistan Furniture Council” (PFC), and a proud member of
Lahore Chamber of Commerce and Industry.

3. MISSION STATEMENT
Our mission is to provide quality home furniture at competitive prices. We
operate with a low overhead costs and pass the savings along to our customers.
We pledge to hold ourselves accountable for all aspects of this endeavor and to
treat our customers with the utmost respect and courtesy. We promise to always
do the best job that we can to ensure that our integrity is never compromised
or questioned.

4. VISION STATEMENT
Our vision is to become one of the leading furniture manufacturers and retailer
nationwide. Offer innovative and superior quality products. We want every
Fabulux Furniture experience to be warm, worry-free, and comfortable through
Respect and Trust.

5. DESCRIPTION
• Name: “FABULUX Furnitures”
The name is derived from “Fabulous” and “Luxurious”.
• Slogan: “Luxury is One Step Away”
• Logo:

6. Trade Mark

7. Our Products
• Home Furniture
• Bridal Packages
• Kids Furniture
• Office Furniture

8. Our Services
• Opportunity for Customer to Design their own Furniture through
Innovative ideas
• Provides Spacious Customization Gallery for Customers to Design Furniture
• Provides facility for Offices to provide Furniture in Bulk Quantity
• After Sales Services

9. Market Analysis
• Customer profile:
A description of a customer or set of customers that includes demographic,
geographic, and psychographic characteristics, as well as buying patterns,
competition, customer needs, creditworthiness, and purchase history.
• Market Segmentation:
It is a sub-group of a whole market in which consumers have similar
characteristics. Identifying these different groups and marketing different
products or services to them is known as market segmentation.

10. Continued…
The three basic market segmentation-strategies are based on:
• Demographic
• Psychographic
• Geographical Differences

11. Geographic Demographic Psychological
•Lahore no specific age, race ,
religion , gender or family
Upper Middle Class and
Upper Class
•DHA Income: 200000+ luxurious lifestyles who
are interested in larger than
life moto

12. Customer`s Needs
• Fabulux is very much concerned with our customers’ needs
• We through our research we have concluded that customers in Pakistan are
immensely interested to buy furniture that is not only comfortable and
reliable but luxurious too
• Also in this era of technology what our customer desired most is to shop
everything while being in the comfort of their homes
• So this is why we Fabulux decided to have a website to sell furniture online

13. Competitors
• Fabulux is facing a strong from its competitors, as we are a Brciks&Clicks
company
• We are facing direct competition from physical stores in Lahore such as
Interwood, Mohkam, Gourmet Furnishers, National Furnishers etc
• We also are facing direct competition from other online retailers such as
Daraz.pk, Kaymu.com,Chiniot.com,shophive.com etc

14. Competitor`s SWOT Analysis (Shophive)
Strengths
 Low cost Furniture
 5-10 days delivery time
Weaknesses
 No customization facility
 Low variety of furniture
Opportunities
 May add a variety of
furniture
 May open a physical store
Threats
 A wide range of competitors

15. Gourmet Furnishers

16. Market Size
• Fabulux is dealing within Furniture market of Pakistan
• It’s a growing domestic and international market
• Many new furniture companies are now joining the furniture industry
• Our handmade furniture is in high demand by high-end customers
• Major furniture-making areas of Pakistan are Chiniot, Gujrat, Peshawar,
Lahore and Karachi.

17. Sales and Marketing
Product:
• Fabulux is offering a range of furniture which includes Beds, Couches, Chairs, Dining Tables, Coffee Tables
And Executive Office Furniture
• The best quality of our furniture is that it is very durable and we offer a different type of woods such as
Mahogany, Diyar, Sheesham, Walnut and others but our most luxurious type of wood is Teak wood which
we especially import from Burma.
Price:
• We decided to go with two pricing strategies
• Firstly, we will go with ‘Penetrating Pricing Strategy’ in it prices are set lower than its competitors in order
to be able to enter a new market.
• And the other pricing strategy that Fabulux decided to go with down the lane is ‘Cost-plus Pricing Strategy’.
It involves around estimating the cost of manufacturing a product and then adding Percentage Mark-Up for
Profit.

18. Continued…
Promotion:
• Fabulux is promoting its furniture through different Social and Print Media Handles
which will be discussed later on.
Place:
• Fabulux thinks that the most convenient place for a consumer is in the luxury of
their own home, so we are selling our products online which will be convenient for
whole nation
• Some customers want physical presence of the product so for those customers we
also have a physical location at Y-Block DHA.

19. Market Expansion
• We will also go for a ‘Corporate Social Responsibility’(CSR) and in that phase
you could give your old furniture to us and we will refurbish it and donate it
to different charities such Edhi Foundation and etc.
• Also, for employees working at our Manufacturing Plant we, for their families
will provide free Health and Education facilities to them.

20. SWOT ANALYSIS
Strengths Weakness
Firstly, we are both Online and Physical Business
which helps us to capture both markets.
One of the major problems faced by the Fabulux is
the Huge Capital Requirement for the start-up.
Fluctuating prices of the raw material adds into our
production cost
Fabulux has a Labor force of 15+ skilled craftsmen
with strong historical background of craftsmen
who do their work with utmost skills and efficiently
High cost of production due to high prices of raw
material.
Fabulux’s most strong initiative is that we let
customers to customize their own furniture through
our Website
There is a lack of trend of buying furniture online.
Fabulux is the only company in Pakistan which
provides furniture to their online customers within
15-20 Days time frame.
High cost of production due to high prices of raw
material.

21. Continued…
Opportunities Threats
Technical up gradation in Pakistan would result in
increased sale and ease in manufacturing.
Government has increased Import Duty which
makes Teak Wood import expensive.
International exhibitions may give us opportunity to
take our business overseas in future.
Migration of trained work forces within the
industry.
Political & Economic stability is vital for the future
investment.
Shortage of wood because of deforestation.
Inconsistent government policies

22. PESTAL Analysis
POLITICAL:
• The political stability of a country
• Connection with taxation, consumer protection, labor protection etc
• Tariffs

23. Continued…
ECONOMIC:
The economic environment is divided into two sectors.
• Standard of Living or Purchasing Power of the customer
• Potential target market
• Pricing strategy keeping in mind to Customers
• Inflation rate

24. Continued…
Social:
• Demand of certain products is controlled by changes in Demographics
• In the same way customers preference varies areas to areas
Technology:
• Online shopping
• Mobile payment
• The increase popularity and reliance of business on increased website
traffic, ability to develop community and relationship with customers.

25. Environment:
• Fabulux will only buy wood from those suppliers who does not believe in
deforestation also they cut down those trees which are mature
• Fabulux will decrease Carbon-Emission from its manufacturing plant for its future
success and sustainability.
Legal:
• Labor and Consumer Laws of Pakistan
• Took approval for building our manufacturing plant from the local government.
• We also give Corporate Tax and Income Tax as obedient citizens.

26. Advertisement & Promotion
• Billboards
• Would be placing billboards in our geographical location
• Viral marketing
• Symbiotic relation between customers and us
• Our customers advertise through “word of mouth”

27. Brochures

28. FLYERS

29. WEBSITE ADS:

32. Newspaper ADS

33. SOCIAL PAGES

37. Email Marketing

38. NEWS Letter

39. WEBSITE

40. Rewards Program:

42. MAP

43. Management (Legal Structure)
• Fabulux Furniture decided to go as a Private Limited Company (PVT) LTD
in Pakistan
• We registered our company under the Companies Ordinance of 1984
• Private Limited Company is a type of company that offers Limited Liability,
or legal protection for its shareholders.

44. OUR TEAM
Abdullah Mehmood
CEO
Muhammad Bahauddin
DIRECTOR
Zubair Nisar
Finance Director
Aqeel Abbas
PR Director
Awais Khalid
Marketing Director

45. Financials
Funding:
• Fabulux started its business with all of its partner’s investment with equally
amount of money which is RS 14 Lacs per partner which turned our capital
into a total of RS 70 Lacs.
Future Funding:
• For future reference, as Fabulux is PVT LTD. We can raise equity by floating
our Shares to Friends and Family Members of all the Partners.

46. RISKS
Operational Risks
• We are facing problems due to our competitors.
• Inability to appeal to the customers
• Problems while penetrating into the industry
Financial Risks:
• Financial impact in terms of extra costs or lost revenue.
• Money flowing in and out of our business, and the possibility of a sudden financial
loss.

47. Continued…
Reputational Risks
• Loss in reputation, we might not be able to sell our products as a result we
will see a sudden loss in revenue.
• Employees may get demoralized and even decide to leave.
• Other expenses

48. Expenses Requirements
• Following are our business expenses:
• Maintenance
• Depreciation
• Marketing
• Manufacturing

49. Continued…
• Rent
• Water
• Heating And Lighting
• Promotional
• Wages
• Transportation costs
• Other expenses

50. Income Statement

51. Balance Sheet

52. Questionnaire
Should Furniture Business Go Online?
• Yes
• No
• Maybe
Would You Prefer Buying Furniture Online?
• Yes
• No
• Maybe

53. Would You Prefer Luxurious Furniture?
• Yes
• No
• Maybe
Does Price Matter To You?
• Yes
• No
• Maybe

54. Would You Prefer Online Customization For Furniture?
• Yes
• No
• Maybe
What Method Of Payment Would You Prefer For Buying Furniture Online?
• Cash On Delivery
• Credit/Debit Card

55. Payment Method
Credit/Debit Card Cash on Delivery
Cash on Delivery 65%
Debit/Credit card 35%

56. Should Go Online?
Online
Physical Location
YES 60%
NO 40%

57. Customization
Yes
No
YES 75%
NO 25%