By 2018, The Modular Kitchen Market in India is expected to reaching an estimated US$2.17 billion, growing at a CAGR of almost 43 percent.
Modular kitchens started gaining popularity in 1998. Prior to that, average Indian customers were solely dependent on local carpenters and regional furniture manufacturers for their kitchen designs. The business has evolved beyond the traditional model from selling modular kitchens through small unorganized dealers and retailers to utilizing modern retail channels that also sell related products and services to end-users.
Despite the highly unorganized nature of the market in India, continuous developments in the Real Estate and Hospitality sectors and increasing annual disposable income drive the growth of the market. The Modular Kitchen market in India is expected to be a major contributor to the country’s FDI inflows in the coming years.
India’s Shifting Demographics Fuel Modular Kitchen Market
With the rise in the number of nuclear families and a change in the demographic structure of the country, vendors realized the need for efficient distribution channels for the Modular Kitchen business. Initially, vendors distributed their products through specific dealers and franchises. Many of these vendors later established exclusive boutiques and showrooms, where customers could touch and feel the products and not just see them in the catalogs.
Modular Kitchen Vendors Capitalizing on Market Growth Potential
With digitalization playing a major role in the economy and the advent of e-commerce in the market in India, vendors realized the need for setting up an e-commerce channel for modular kitchens. Recently, vendors such as Veneta Cucine CC India, Sleek International, and Oren Kitchen Appliances have collaborated with major e-commerce websites in India such as Flipkart.com and Sulekha.com for the effective distribution of their products.
Moreover, these vendors offer designs for customized modular kitchens on their websites, where customers can suggest their designs and specifications and are provided with solutions as per their requirements.
Vendors in the Modular Kitchen market in India focus on establishing long-term relationships with customers. In an effort to enhance the customer relationship ties, vendors such as Godrej and Boyce and IFB Industries have also started offering a number of benefit programs and organizing interactive activities for their customers. Attractive offers on sales and after-sales services are also eminent in the market.
