Two friends had a common vision to create an online furniture retailer for modern Indians. Pepperfry was launched in 2012 and has since grown to over 40 studios, 22 warehouses, and 1 office across India. It utilizes information technology like automated inventory management and a seller/franchisee dashboard. Products are sourced from over 10,000 sellers and distributed through Pepperfry's supply chain centers. While revenue has increased yearly, expenses exceeded income in recent years. Areas for improvement include increasing competition, high shipping costs, and customers' preference for offline shopping. Pepperfry is exploring augmented and virtual reality, as well as artificial intelligence, to enhance the customer experience and disrupt the furniture retail industry.

1. Two Friends Had A Common Vision
“To be the place where the modern
Indians shop for their homes”

2. Furniture Industry
Changing Consumer Preferences
Rise in E-Retail for Furniture
Rental Furniture Demand

3. Timeline
Dec
2014
Jan
2012
Jan
2019
Mar
2016
First Studio
Launched at
Kanjurmarg, Mumbai
Launched
Website
www.pepperfry.com
Padgha
Warehouse
Largest Furniture
Warehouse In The
Country
6 Million
Served Customer
Orders

4. 40+ Studios
22 Warehouses
1 Office
LOCATIONS

6. Major Competitors

7. North
24%
South
45%
East
11%
West
20%
Online Sales
Offline Sales
Sales
62%
38%
Overall Sales % of India

8. 206.78
390
-183.48
260.61
383
-122.31
-300
-200
-100
0
100
200
300
400
500
Total Income Total Expenses Profit/Loss
Income V/S Expenses
2019 2020
All
figures
in
INR
Cr
All
figures
in
INR
Cr
127.55 140.6
206.78
260.61
0
50
100
150
200
250
300
2017 2018 2019 2020
Revenue in Cr

9. Usage of
Information
Technology

10. Usage Of Information Technology
Automated platform that
syncs physical and online
channels of Pepperfry to
manage inventory
CIN7
A Network between Sellers ,
Franchisee Designers & other
teams in regards to inventories,
order tracking payment etc.
Merchant Dashboard

11. Supply &
Distribution
Chain

12. Sellers Warehouse &
Logistics
Pepperfry
Supply Chain Of Pepperfry
Customer

13. How to be a Seller ?

14. How to be a Seller ?

15. Seller’s Earning &
Pepperfry’s Commission

16. Online Order Execution
1. Category team meets sellers, check and curate products that you see
displayed on the platform
2. Once the product is sold, it is packed and brought to the Pepperfry
sourcing centre.
3. Pepperfry has 4 large sourcing centres in the country - Jodhpur, Delhi ,
Mumbai & Bengaluru .

17. Pepperfry’s
Franchise
Program

18. How to Become a Franchisee

19. Sample Financial Plan

20. Logistics Management
• Entire process is streamlined
• The distribution centres are between 5,000 sq. ft to 15,000 sq.
ft in area
• Pepperfry owns 370 trucks, has close to 1,000 delivery
executives and 250 carpenters working on assembly.
• The team currently works with
over 10,000 sellers, out of which
3,500 sellers get orders every
month

21. Logistics Outsourcing
Contract with FM Logistic
Delivery time reduced from
25 days to 11 days
Damage rate reduced from
17% to 1.5%

22. Areas of
Improvement

23. 02
04
03
01
Focus Points
Increasing
competition
Big investors in
rival companies
High Shipping
costs
Preference for
offline mode

24. Poor Customer Service
27%
34%
15%
14%
10%
1 Star
2 Star
3 Star
4 Star
5 Star

25. • 30.8% said they want to see or feel
products in person.
• 29.9% of survey respondents want
their items right away.
• 16.9% said shopping offline helps
protect their privacy.
• 14.4% of Indians buy in-store to
save on shipping costs.
• 6.5% of consumers prefer offline
due to easier/cheaper returns.
Offline Presence

26. Prescriptions
for Disruptive
Innovations

27. Augmented Reality in Furniture Retail
Try before you buy
Product customization
In-store engagement
Ready adoption of technology

28. Virtual Reality in Furniture Retail
Customers can take the virtual walkthrough of the Pepperfry
Experience Centers to experience a real shopping
environment without ever going into a physical shop

29. Virtual Reality in Furniture Retail
Studio Pepperfry: Kanjurmarg

30. 3
2
1
Use of AI and ML
Personalized
Recommendations
Visual Search Optimization of
delivery

31. Thanks!
Prachi Makwana 19
Sarvesh Kandalkar 38
Srikanth Varanasi 48
Parita Bhatt 75
Saloni Jain 104