India"s third largest wooden flooring brand the 'Bharat Vikas Group' (BVG) is going rural.If not in the literary sense, BVG flooring is eyeing the vast untapped market of tier two cities where market leader Pergo is yet to make a mark. BVG plans to set shops in thirty tier two cities where the concept of wooden flooring is still at its infancy. (Click Here For More Pictures)
Currently BVG flooring has 150 dealers. By the next year end another 200 dealers shall be added to the kitty. By doubling the dealer base, BVG Flooring hopes to corner 40% market share among branded players in over next two years. However the key to its expansion lies in the choice of cities.
Vishal Goyal, Managing Director, BVG Flooring quips “ The real action is in the tier two cities . Its ignored by lifestyle brands yet. And we are getting phenomenal response from Cities like Jaipur,Lucknow,Merrut,Chandigarh,Bhavnagar,Ludhiana,Kanpur etc. Tier two cities have surplus income locked up and waiting to be splurged on lifestyle products."
Vishal Goyal has identified 30 tier two cities where the potential for lifestyle product, particularly home decor is high. These cities include Kanpur, Lucknow, Merut, Jaipur, Pune, Patna, Ludhiana, Chandigarh, Mysore, Amritsar, Surat etc. In two years, the company shall have close to 100 stores in the tier two cities alone.
The biggest challenge for the wooden flooring brand has however been to create a product mix suitable for both metro and tier two cities. Assuming the tier two cities would need introductory prices,Vishal Goyal,MD BVG Flooring says, “The small town market is huge and completely untapped but extremely skewed towards ceramic and marble flooring. To change perceptions a wooden flooring brand like ours has to offer price points closer to ceramic and invest heavily on brand building."
BVG has created a product portfolio keeping in mind a diverse wooden flooring consumer base in India,a majority of whom are still not introduced to the style and functionality of wooden flooring. So while engineered pure wooden flooring is being aggressively positioned for the matured metro markets and architect.BVG has launched introductory product at sub Rs 50 per sq feet for the tier two cities. This product line will compete head on with the premium range of ceramic tiles. Says Vishal Goyal,Managing Director of BVG,“The range of laminated flooring is aimed at first time users of wooden flooring who are not too conscious about pure wood flooring.We have priced this range of laminated flooring so aggressively so as to be able to win over customers from conventional ceramic flooring.I am making attempt to increase volumes by offering the mass market a low price range option."
BVG has partenered up with brands in Germany,Sweden and China for techno-marketing deals.While the high end pure wood flooring are from Germany and Sweden the more affordable low cost product line is coming from China.Says Goyal, “With volumes still pretty low in India,larger overseas brand is not yet looking at full scale equity participation."