Omni-channel approach is essential as consumers seamlessly switch between online and offline interactions: Anand Baldawa

Mumbai: HGH India is India’s leading biennial trade fair for home textiles, furniture, home décor, housewares and gifts, connecting Indian and international brands with retailers, importers, distributors and designers in the growing Indian market. Since its inception in 2012, the trade fair has consistently delivered solid business results, making it a must-see for anyone investing in the Indian home products sector. The 15th edition of HGH India will be held from July 2 to 5, 2024 at the Bombay Exhibition Centre, Goregaon, Mumbai.

Tailored to facilitate meaningful connections between exhibitors and potential buyers in India, the trade fair has earned a reputation as a world-class, must-see trade show. Here, brands, manufacturers, importers and distributors showcase their latest innovations and full range of products to professionals from the retail industry, trade buyers, interior designers and the gift industry.

HGH India provides quick access to the rapidly growing home care market in India, which is growing at 20 percent annually. Recognized globally for its quality and focused business environment, HGH India influences product development and merchandising trends through its design and fashion forecasts.

As India seeks significant economic growth, aiming to become a $5 trillion economy by 2025-26, the world’s fifth-largest economy with a population of 1.4 billion, it presents huge opportunities for emerging markets. Growing demand for household products, growing by 20 percent annually.

Among the brands participating in the exhibition is thinKitchen, which is taking an omni-channel approach to serve the Indian market. The brand caters to offline commerce, hospitality, institutional gifting and major online platforms like Amazon, Tata Cliq, Ajio.com, Nykaa, Myntra, Flipkart, Pepperfry and its own platform. Offering a wide range of over 1500 SKUs and over 50,000 products, the thinKitchen collection includes food prep, cookware, tableware, serving, barware and kids’ items. Collaborations with 30 premium brands like Amefa, BarCraft, Brabantia and others ensure a premium range that meets the discerning tastes of the Indian consumer.

In terms of numbers, as per a Kantar report, the Indian e-commerce market is expected to grow at a compound annual growth rate of 19 percent between 2022 and 2030, while D2C’s share of e-commerce funding in India is estimated at 49 percent during the same period. While it is still early days for D2C and while many traditional businesses have gotten involved, standalone D2C revenues remain modest at less than five percent of total e-commerce revenues for 50 percent of respondents. This shows that successful D2C companies have gotten it right in areas like transparency of proposition, developing consumer insights through enriching and leveraging data, and analytics and reporting.

Indiantelevision.com on the sidelines of the show caught up with thinKitchen CEO Anand Baldawa where he discussed the brand’s omni-channel approach and their ideology. He further delved into insights and trends in the kitchen and home space, along with expansion plans and more.

Edited fragments

About the omnichannel approach of thinkKitchen

In India, every consumer now uses multiple channels. With affordable data and widespread smartphone adoption, platforms like Amazon and Flipkart have succeeded in offering access to multiple channels. Consumers are making omni-channel purchases, where online reviews play a key role—they provide insights that are not available in brick-and-mortar stores. Take my mother for example; despite her age, she uses her smartphone to research online before visiting local stores to compare prices. This omni-channel approach is essential as consumers seamlessly switch between online and offline interactions. Google plays a major role in this journey, from initial research to final purchase, whether it is online or offline. This generational shift underscores the importance of being present across all channels to effectively meet consumer needs.

On the role of sustainable development

Many of our products have an environmental focus. For example, all are manufactured in factories that comply with social standards. Packaging contains recycled materials such as plastic or paper where possible. Our warehouse runs entirely on solar energy, reflecting our commitment to environmental sustainability. Brands such as Amefa, Crystal, Dartington, Denby and others actively recycle materials in their manufacturing processes – clay and stone are reused, minimising waste. Recycling initiatives extend to packaging and warehouse operations, ensuring efficiency and environmental responsibility across our business.

A report by MMA Global and Publicis Commerce found that more than 80 percent of D2C businesses have not yet achieved profitability

It’s an undeniable reality for any business, including D2C brands, that it takes time to reach profitability. The typical gestation period is three to five years. That’s why entrepreneurs need to be resilient, prepared to weather initial losses. As my father taught me, losses in the first year, break even in the second or third year, and profitability in the fourth year are common expectations. This is not just true for D2C ventures, but also for new manufacturing operations; expecting profitability in the first year is unrealistic. The key is to understand the stages of loss. If we’re only slightly unprofitable—where every unit sold contributes positively—it’s a matter of scaling and building awareness. Ultimately, fundamentally strong businesses, whether D2C or otherwise, can achieve profitability. In today’s market, some chase value, others cash flow; we tend to be conservative in order to ensure long-term survival and success.

Some of the trends you are witnessing in the home space

The decision-making landscape is changing – where mothers and mothers-in-law once dominated, daughters and daughters-in-law are increasingly taking over. A significant change is the evolution of the kitchen from a secluded corner to the heart of the home. What came out of the kitchen once mattered more than what went in. Now, kitchens are open, integrated into modern homes, which often consist of nuclear families. The kitchen has become a central hub, blurring the lines between cooking and living spaces, with dining tables often connecting the two. Despite challenges such as Covid-19, which has increased kitchen use during lockdowns, the kitchen remains a daily necessity, unlike guest rooms or living rooms that may be unused for extended periods. The influence of cooking shows such as MasterChef has expanded kitchen aspirations. As disposable incomes rise, people are looking for value and quality, willing to invest more in their culinary spaces.

In tier 2 and tier 3 cities that are seeing exponential growth in sales

There is definitely growth in the cities from which we see orders. Most of our orders come from metros and tier-1 cities. However, I believe the real potential lies in tier-2 and tier-3 cities. There is significant purchasing power there. People aspire to a lifestyle similar to tier-1 cities, but often do not have access. They have the means and the willingness to spend. I have personally spoken to people from Punjab, Rajasthan who are keen to make large purchases, often keeping us busy till early morning. There is real purchasing power in these regions. While they may not outperform tier-1 cities, they are becoming increasingly important as we expand. Today, our distribution and delivery partners enable us to reach 90-95 percent of postal codes within 72 hours, even in tier-2 and tier-3 cities. Online availability and smartphone penetration have made it easier for consumers to search and buy products with confidence. Our challenge is to convince new customers who have already made a purchase, but once they do, they start to trust our genuine products, reliable packaging and fair pricing. This translates into a high rate of returning customers, reaching 30–40 percent.

On the expansion plans of thinkKitchen in the next four or five years

The vastness of India offers immense potential. With a population of 1.5 billion, my customer base is concentrated at three percent. This segment is reported to be around 75 million people and is expected to grow to 9-13 percent by 2030. While we also cater to the hospitality sectors in neighbouring countries like the Maldives, Bhutan and occasionally Sri Lanka, our primary retail focus remains India. Our aim is to consistently deliver better brands, quality products and competitive prices to our valued customers.