American brand Ashley, considered to be among the biggest furniture brands globally, is planning to open 100 stores in India over the next few years. The company, which made a debut in India last month in Bengaluru, has inked licensing agreement with Pune-based Deepak Fertiliser for its Ishanya property. Under the licensing agreement, Ishanya mall is permitted to procure and sell the products of Ashley specifically in Pune region. Amid this partnership, the mall is targeting to bag the revenue target of $1 million in the fiscal 2018-19. Mahesh M, CEO, Ishanya spoke to Sunil Pol during the launch of Ashley Furniture HomeStore in the mall.
Tell us about your licensing agreement with Ashley Furniture HomeStore?
Under the licensing agreement with Ashley Furniture Home Store we are permitted to procure, showcase and sell the products. Primary they as a licenser have given furniture brand exclusively in Pune region. The tenure of the agreement is fairly long.
What inspired you to bring Ashley Furniture HomeStore in Pune?
In the city like Pune consumers requirements are moving towards aspirational lifestyle, so we wanted to bring Ashley in the city with all the efforts. We have worked with Ashley for the past 12 months. We are the exclusive licensee for the Ashley Furniture HomeStore for the Pune region. Hence, we are working on making its beautiful products available to the consumer at affordable price range. The products are completely international.
How will this partnership benefit Ishanya?
We are building India’s largest destination for home lifestyle products so Ashley will be anchoring it. The brand is going to bring in certain strength and flavor which Pune has not seen yet. The company has 70 years of history with 30 years in retail. Our idea is to position the brand around American Lifestyle being brought here in Pune. Next fiscal year should be pretty good in the sense that we are looking at second fiscal year should bring us the revenue of $ 1 mn.
According to you which are the factors driving sale of lifestyle products?
Focus on home fashion has been steadily catching up over the last few years with rapidly increasing disposable incomes, aspirational buyers who look forward to improve their lifestyles and greater international exposure. These factors are drawing the attention of large and established international brands which are keen to capture the potential of these Tier I markets. The scenario in home and interiors retail spans from standardization to mass customization to personalization, wherein customers look forward to design and product exclusivity and retailers that are able to innovate and offer customized experiences are reaping the benefits.
What is the product range that the Ashley store will be showcasing?
The store at Ishanya will showcase living rooms, dining rooms, bedrooms, home accents, mattresses and much more as different living styles that Ashley is known for. The store’s style lineup will include thoughtfully designed living styles such as Urbanology, Vintage Casual, Traditional, Contemporary and New Traditions.
What is the price range of these products?
The qualification of the pricing is based on good, better and best which is varying from minimum Rs 75,000 to up to Rs 3 lakh. We offer an assortment of multiple living styles which while being truly American is attuned to Indian sensibilities.
What will be consumer group that you will be targeting?
We are targeting millennial to upper middle class consumer group with rising disposable income.
What is the area of the store? What is the investment that you have made for it?
It’s a 12,000 sq ft area of the store. We have invested Rs 3 crore for the store under which we have also bought the stocks from Ashley to sell.