HOME-MART

Home interiors and beyond www.betterhomeinteriors.in

About Home-Mart
Home-Mart is a one stop solution for all your requirements related to interiors, home design, furniture, etc. The most unique proposition of the mart is availability of a interior decorator for customer queries. Home-Mart one of the biggest furniture showrooms in Vasai city with an area spread across sprawling area of 3500 sq ft. Home Mart provides furniture for all needs

1) Vision
What is your big vision? To become most trusted shopping destination for all furniture requirements

What problem are you solving and for whom? Most of the furniture shops dont have the facility of free interior decorator consultation at the stores. Home-Mart will solve by providing this service. Also the location of Home-mart in Vasai is in the heart of massive residential townships like Agrawals Kaul City, Agrawal-Doshi complex, Rajhans Complex in addition small residential complex. Where do you want to be in the future? Down the line within three years to start manufacturing furniture for my store, instead of outsourcing. To launch store in Boisar, as Tata has ventured for the Nano city.

2) Market Opportunity
How big is the market opportunity you are pursuing and how fast is it growing? The location of Home-Mart is in the heart of massive residential complex in Vasai. Some of the big complexes like Kauls city, Rajhans complex, in addition to local builders constructions. Earlier the nearby area was under green zone, but recently in 2009 this was changed to residential zone, so the whole area is getting developed. How established (or nascent) is the market? With massive residential complexes, most of the nuclear families are shifting in these locations, as Mumbai is unaffordable, most of the families are shifting to Vasai. Do you have a credible claim on being one of the top two or three players in the market? In the initial phase of first two years, Home-Mart will establish itself, to become the leading furniture shop.

3) Defining the Customer

Who are your existing customers? The existing customers are the families who are staying in this area. The location is already surrounded with 20 residential complexes, which will form the existing customers base.

Who is your target customer? The target customer will be newly shifted families, who are looking to decorate their homes. Newly wed couples, who have recently brought a home and what to decorate their homes.

Who actually writes you the check, who is the decision maker? The key decision maker is the wife/mother who decides what to buy, the payments can either come from her or her husband. Sometimes children can also become decision-maker incase have to buy bed/study tables.

4) Value Proposition
What is your value proposition to the customer? The customer will get spot consultation from the interior designer in addition to furniture selection and a library of home designer manuals/books What kind of ROI can your customer expect by using your product/service? Our customers can return to the store for future consultation and also avail membership of our library. What pain are you eliminating? According to our experience, most often to buy furniture's the customer hardly consults an interior designer. The reason behind this is searching a good interior designer, payment to the interior decorator, invest time for meeting, etc. We are offering all the services, without any charges, so it relives the customer. Is your product a luxury, a nice-to-have, or a need-to-have? The products are nice-to-have, as everybody requires bed to sleep, kitchen elements, drawing room sofa sets, etc

5) Selling Process
What does the sales process look like, how long is the sales cycle? Home-Mart will feature home interiors related products like furniture, kitchen modules, etc. Most of the products will be outsourced and will be on a credit period of 60 days. At the store when the customer comes to see the products, he can either check the products else can also avail free consultation of interior decorator. Post this depending upon the requirement, he can choose the products. This usually takes a couple of visits as the customer also checks the products from competitors stores and compares. How will you reach the target customer? The marketing activities will include hoardings, leaflet distribution, PR activities, tie-ups with upcoming townships and advertising with local newspapers.

6) Selling Process
What is your sales, marketing and distribution strategy? Sales strategy : The strategy will try to explore tie-ups with new interior designers. Commission to interior designers Marketing strategy: Initial phase of six months more focus on OOH advertising. Subsequently shifting focus to print advertising. Distribution strategy: Tie-ups with third party for delivery and procurement of the products. Also identifying outsourcing partners and negotiating for credit period. What is the current sales pipeline? Since the sales will only take place post launch of the store. We have identified interior designers in the area for tie-ups. Also we have started exploring talks with new housing complexes.

7) Acquiring Customers
What is your cost to acquire a customer? Marketing investment/number of footfall per month = cost per customer

How will this acquisition cost change over time and why? Reducing costs on marketing will change the cost per customer. Also focusing more on tie-ups with interior designers will increase more footfall with less investment.

What is the lifetime value of a customer? Home furniture's are purchased by customers mostly every 6 to 8 years, we will offer to buy the old furniture at less cost based on the valuations, provided the customer buys the new furniture from Home-Mart. For Home-mart customers, they can consult for any new interiors free of cost.

8) Management Team
Who is your management team, what is their experience? Samson Gomes: B. Arch and proprietor of Samson Gomes Associates. The firm has been managing various projects in Thane and Mumbai for last three years. Previously project manager with ELM Designs, worked on interiors for Prakash Mehra, designed and executed Suede Lounge. Moses Gomes: Partner Identity Brand Consultants, which is into website designing and development for last one year. Have been working on brand management/marketing and public relation campaigns for various clients like Hinduja Hospital, Idea, Novartis, The Loot stores, etc What pieces are missing and what is the plan for filling them? The management hopes to induct a financial advisor in the management team to guide for financial matters. The management will also hire a store manager with atleast 3 to 4 years experience in managing stores.

9) Revenue Model
What is your revenue model? Third party payments after 60 days Customer payments will be on spot. For housing townships tie-ups, 50% payment within 30 days of completion of the project. For each references the interior designer will earn 5% of the total purchase value, within 7 working days and post complete payment. What is required to become profitable? Increase footfall More tie-ups with interior designers Tip-ups with housing complexes.

10) Stage of Development

What is your stage of development? Technology/product? Identified the location Identified third party outsource for furniture and products Identified interior designers Identified developers

What has been the progress to date (make reality and future clear)? Conducting survey to gauge the acceptability of such store in vasai.

What are your future milestones? To launch Home-Mart in Boisar which is developing into a mega city for middle class.

10) Product Road Map

11) Fund Raising Plans

What funds have already been raised? How much money are you raising and at what valuation? To launch this store and keep it operational for 12 months the management requires 1.35 cr. The management has been able to raise 20 laks from the initial sale of a commercial property and savings. The management plans to further raise 15 laks from bank loans and family. How will the money be spent? How long will it last and where will the company "be" on its milestones progress at that time? Major part of the investment is required for third party outsourcing. The investment will be helpful to sustain the company for 18 months. In 18 months time the company would have break-even post recovering the investments and would be registering profits. How much additional funding do you anticipate raising & when? The company not require addition funding as the company would be registering profits.

12) Competition
Who is your existing & likely competition? 1. Home art 2. Innovative furniture 3. Inspire Who is adjacent to you (in the market) that could enter your market (and compete) or could be a co-opted partner? The company will try to co-partner with Home Town, as that will help to garner goodwill of the company. What are their strengths/weaknesses? Why are you different? Home Town is located at just one location, and the customers have to travel all the way to Vikroli to purchase. With the launch of addition location the western and Thane customers can avail those facilities over here.

13) Partnerships
Who are your key distribution and technology partners (current & future)? The main partners will be interior designers, who can help the store. Other partners can be estate agents and they have the knowledge of new people getting relocated. And the third partners will be the new developers, and they can suggest the store for all home related purchases.

How dependent are you on these partners? The company will be more dependent on marketing and less on the partners as they can help to achieve targets. The company will be only 305 dependent on the partners.

14) Fit with prospective investor

How does this fit with the investors portfolio and expertise? The store area has tremendous potential for a furniture store. Since more than 10 townships have been planned in a radius of 2 kms. Also other store operators like Dmart have opened their store. Already three furniture shops have registered profits like Innovative furniture and Home Art (Both have an area of around 2000 to 3000 sq ft. Since most investors are entering tier 2 cities this forms an important avenue for investment. What synergies, competition exist with the investors existing portfolio?

Thank You
HOME-MART, Opp. IDBI Bank, New Barampur, Vasai Rd. (W). PIN 401202
Tel +91 98339 61636 Email: info@betterhomeinteriors.in