How Pepperfry is Uniquely Fuelling Growth for 2023

Pepperfry’s relentness innovation has helped it stay ahead of the curve. It has made significant investments in AR and VR to expand its curated digital catalog.

- VAISHNAVI GUPTA

Pepperfry has the largest omnichannel footprint in the country. The brand has over 200 Studios covering more than 100 cities with a total retail space of 2.4 to 2.6 lakh sq ft. Pepperfry’s Studios are based on two business models - Franchisee Owned Franchisee Operated (FOFO) and Company Owned Company Operated (COCO). It launched about 110 franchisee studios in the last 11 months and expects to maintain the same run rate. “Customers who visit Pepperfry Studios now account for 36 percent of our business. The growth in Studio also resulted in an increase in the share of higher-margin D2C private labels, which reached 41 percent of Gross Merchandize Value in FY22,” said Ashish Shah, Co-Founder, and Chief Operating Officer, Pepperfry. “Our goal is to become a ‘neighborhood store’ as we continue penetration in cities and towns through our franchisee business model,” he added.

D2C: A MAJOR BIZ CONTRIBUTOR 

The growth of e-commerce market and specifically the D2C has grown significantly over the pandemic. It is attributed to more customers getting online, during the pandemic, driven by necessity. It enabled the existing big D2C brands to get bigger and helped a slew of newer D2C brands to emerge.

Pepperfry also has a strong focus on its D2C strategy as it believes it is the best way to reach and connect with its consumers. The brand has its D2C private brands known as ‘House Brands’ to help fill in market gaps in style and price.