THE EFFECTS OF COVID-19 AND THE TRADE-OFFS

FACED BY RETAIL BUSINESSES

CIA-1.1

VISHNU RAO VENKATESAN

2120560

TABLE OF CONTENTS

● INTRODUCTION 2

● ABOUT THE COMPANIES 2

● RESPONSE TO THE COVID-19 PANDEMIC-(KURL-ON) 3

● RESPONSE TO THE COVID-19 PANDEMIC-(PEPPERRFRY) 4

● CONCLUSION 5

● BIBLIOGRAPHY AND REFERENCES 5

1
INTRODUCTION

The effect of the Covid-19 pandemic has been adverse on most of society. Naturally, some

sectors have been affected more than others. The retail businesses are higher up on that scale.

Both small-scale shops and massive supermarket chains have faced problems retaining

customers and making sales. With most businesses shutting down due to the lockdown, it has

been imperative that these businesses come up with new strategies and policies to stay in the

market. The following write-up conveys the trade-offs and opportunity costs presented as the

result of these changes in policies in two companies, namely Kurl-on Enterprise Limited and

Pepperfry, a subsidiary of Trendsutra Platform Services Private Limited. Both companies saw

changes in marketing, customer relations, and digitalization. On studying the changes made by

these companies, conclusions can be drawn as to how they were able to conduct profitable sales

in a very competitive market in these hard and difficult times.

ABOUT THE COMPANIES

Kurl-on is the predecessor of a company once known as Karnataka Consumer Products Limited

which was pioneered by Mr.Ramesh Pai. It is involved in the production of cushions, mats and is

the leading producer of mattresses in India. At present, it has partnered with nearly 70,000

dealerships scattered across India and owns 9 strategically placed manufacturing units.

Pepperfry was the result of the vision of 2 friends in the year 2011. It started as an online

platform and slowly began constructing studios. Their main source of income is from the sale of

furniture which ranges from plastic chairs to bunk beds. Currently, it has 40 exclusive Pepperfry

2
experience studios and has recorded sales in more than 500 cities. Pepperfry has developed an

engaging app with several features including augmented reality.

RESPONSE TO THE COVID-19 PANDEMIC- (KURL-ON)

Kurl-on was one of the businesses that did not completely shut down during the lockdown. The

rise in covid cases in India saw the rise in demand for hospital beds and quarantine facilities and

in turn, more demand for mattresses. Kurl-on was allowed to operate its manufacturing units

provided there was sufficient workplace sanitation and social distancing.

As people adapted to the new normal of working from home, the company focused its production

on furniture that was posture friendly such as the Kurl-on Rest Angle Pillow and office furniture.

By assigning more labor towards the above products, the company traded off on producing

goods such as soft toys, sleeping bags, and greeting cards.

The company also saw a change in management with Mrs.Jyothi Pradhan taking over as the CEO

of the company. One of her first initiatives as CEO was to develop a digital platform enabling

contactless ordering and virtual inspection of mattresses. This was received well by the

community who were for most of the day restricted to their living spaces. Naturally, this saw a

decrease in advertising through billboards and brochures. The company also came up with a new

tag line, #ApnaGharApnaStyle instilling a feeling of ownership in their customers.

Kurl-on took advantage of the Atmanirbhar movement stirred up by the Prime Minister claiming

that they had more than 70,000 partner organizations and that the company focuses on providing

jobs and opportunities for local communities, creating a trade-off between recruiting skilled

laborers and responsibility towards their neighborhood.

3
Overall, Kurl-on found the cracks in what seemed to be an unending barrier caused by the

pandemic. It was able to expand its vision and the products it provided during what seemed to be

a stagnant period for most companies. To quote Mrs.Pradhan, “The future for Kurl-on is very

exciting as technology is enabling consumers to experience our products and offerings in new

ways. I am honored to have the confidence of the team as Kurl-on continues to trailblaze a path

not only in the mattresses industry but in home and furniture segments as well.”

PEPPERFRY

Unlike Kurl-on, Pepperfry had to remain shut during the first few months of the lockdown as

furniture wasn’t listed under essentials. This was challenging both for the company and its

employees. However, as the market opened up the company noticed a rise in demand for office

infrastructure suited for homes as most workers were continuing to work from home. Producing

more office infrastructure saw the production of products such as decor and lighting going down.

On noticing that billboard advertisements were not worth it, it was quickly traded off with

investing more time and money into enhancing their social media presence on platforms such as

Twitter, Instagram, and LinkedIn.

When the warehouses of Pepperfry were not functional due to the pandemic, the company chose

to uplift their customer relations and consumer engagement through quizzes and trivia.

Pepperfry’s investment in robust big-box logistics and supply chain model in pre covid times

proved quite efficient and effective in reinitiating deliveries post lifting the lockdown

restrictions.

Another initiative taken up by the company was to take down messaging and notification

features relating to discounts and sales, instead they put up notices involving maintenance of

4
furniture and innovative ways to use their products. Although this didn’t promote sales for the

company it did a good job in customer relations.

It was a result of all these efforts and strategies that saw Pepperfry surpassing its pre-covid sales

volumes by 50-60%.

CONCLUSION

On analysis of these changes in marketing strategies in policies by both companies, most of these

changes could be related to a few basic economic concepts, such as trade-offs and opportunity

cost. The businesses were also intelligent in identifying the market forces that would favor them

during the period of the lockdown. By using these concepts and expanding on these ideas they

were able to stay in business and surprisingly also made more sales than pre-covid times. These

companies have shown the power and value held by these economic principles and how effective

they can be if used perfectly.

BIBLIOGRAPHY AND REFERENCES

● Financialexpress.com

● https://www.businessinsider.in/advertising/brands/article/marketing-in-times-of-covid-

pepperfry/articleshow/76159096.cms

● https://www.businessinsider.in/advertising/brands/article/how-pepperfry-surpassed-its-

pre-covid-sales-volumes-by-50-60-in-october/articleshow/79387268.cms

● Kurlon: Buy Mattress & Pillows online

● Aninews.com

● businessstandard.com