Robin ChhabraGLOOB DECOR

WALLPAPER BRANDS, BUSINESS MODEL

AND THEIR PROS & CONS

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.

Wallpaper Existing Brands

• Gloob Décor – (Upcoming Market Leader)

• Marshalls

• Elementoo

• D’decor

• Others

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…

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 Sqftspace/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

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

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..

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.

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.

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

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.

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

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

Thank you