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
Legacy continues…

5. Products
• Wallpaper
• Wall Graphics
• Clocks
• Paintings
• Sculpture
• Wall Accessories
• Designer Furniture
No's that make us feel Proud
• 5000+ unique Products
• 1.5+ variants
• 60 Excusive store space
• 350+ Network Partners across India,
UK, Bahrain & Nepal
• 40000+ Cumulative store space
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 India 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