Guest AuthorMumbai is currently undergoing a major transformation phase of redevelopment projects and new construction. Hence, the future of the interiors business holds massive potential. The majority of home-buyers belong to an educated, professional and younger demographic. Hence, there is a major shift to choosing professional companies to do up their homes over traditional contractors.
There is an increasing demand for firms and home owners who keep in mind functionality, aesthetics and latest trends at an affordable pricing. At BuildWith, we try to bridge this gap by providing a professional service at an affordable pricing which does not burn a hole in the pockets of our customers.
Current Scenario
Market size & potential
- Mumbai is expected to build 2 Lakh new homes in next 5 years.
- The current market potential is huge with a rising demand for innovative interior solutions.
Spending patterns
- Following a general thumb rule, home buyers in Mumbai typically allocate 10% of the house value for interiors of the house.
- Assuming a conservative value of Rs. 10 Lacs per flat, this results in an estimated Total Addressable Market (TAM) of Rs. 20,000 Crores.
Emerging Trends
Technological integration
- There is a rise in consumers opting for automation and smart homes.
- Virtual Reality (VR) and Augmented Reality (AR) are becoming tools for a more engaging and immersive customer experience.
Minimalism with a hint of luxury
- Blend of minimalistic principles with accents of luxury interiors is becoming a defining trend.
- Clean lines, neutral color palettes, and strategic use of high-end materials create a sophisticated yet understated ambiance.
Space-efficient designs
- Given the premium on space in Mumbai, consumers want a multi-functional furniture and space-efficient designs.
Interior solutions that optimize the limited space available are widely sought.
Challenges
Local Contractors
- The general contractor beats the professional companies with their lower pricing structures.
- This becomes a challenge due professional firms have to come down on costing which leads to compromise in quality or service in few companies.
Market Competition
- There is a saturation of numerous firms in the market.
- With such an increase in competition, the companies try to undercut each other in terms of pricing which spoils the equilibrium of the market.
Oligopoly of Major Players
- There is an increasing dominance of well-funded start-ups notably Livspace, HomeLane etc. which is causing issues for smaller companies.
- The nature of this dynamic field requires swift on-field solutions to address issues making corporatization complex.
Scalability
- Scalability becomes a challenge because due to the manpower intensive nature of the business specially for smaller firms.
In conclusion
Keeping in mind the growing real estate industry of Mumbai, the interiors business is all set for a big boom. The key to success is to create an equilibrium between having a corporate structure and the dynamic nature of the business. The upcoming interior design companies will not only define the living spaces but the very essence of contemporary living in the city.
-Siddharth Gujarathi, Co-Founder, BuildWith
Aravind Sundaram
Guest Author
6 comments
Very insightful read, Siddharth.
Thank you so much!
Informative article. What about furniture giants like IKEA and Home centre. Is that good quality at the prices they are offering?
Hi. Great question. These companies are using cheaper materials like MDF(Medium Density Fiberboard) in their furniture which don’t last for longer periods of time. This is done to make it affordable to the masses. The quality might be good as per the prices being offered. But if you look at it individually, it’s not that great.
Interiors have become too commerial with this corporate set up. Everyone wants to just sell modular with minimum to zero customisation due to obvious profit margins. What’s your take on that?
Hi Namita. That’s a great question. A perfect balance between corporate structure while keeping the creative side of the field alive is the key. Otherwise, it wont work for a long period of time.