Textile players turn to premium ‘home’ offerings for better margins

The trend of premiumisation is gaining traction in the home textile segment.

Recently, Raymond re-entered the home segment and now it wants to go premium with its bed-sheets and towels under Raymond Home.

Welspun India is set to bring in the UK-based luxury home fashion textile brand Christy despite having a mid-priced brand, Spaces Home & Beyond, in its portfolio.

Bombay Dyeing, another textile plaer, no longer wants to be seen as a ‘discount’ brand and is shedding its lower price points and refurbishing stores with an upscale look and feel.

Textile companies are making a comeback in the home category with premium products to build better margins in a segment that is still fragmented and unroganised.

The market, which is estimated at ₹18,000 crore with penetration of organised retail at a mere 8 per cent, is making more textile brands upgrade their offerings since consumers are willing to pay a premium.

“There is a clear opportunity to make profits in the luxury and premium side in the home segment. We have evaluated and re-entered the home category and plan to have exclusive Raymond Home Shops along with a digital focus for the brand,” said Sanjay Behl, CEO, Lifestyle, Raymond.

The company had entered the home furnishing space under the brand Be: Home, but discontinued the format. Now, it hopes that re-launching its bed sheets, towels, quilts and blankets with ‘luxurious’ fabrics is going to make a difference to the business.

“We have studied the segment and premiumisation will lead to profitability and our first exclusive franchise store has been launched in Kolkata. Raymond Home will be pitted against brands like Portico and D’décor,” added Behl.

Welspun India is planning to launch towels (₹2,500) and bed sheets (upwards of ₹12,000) in the domestic market under the UK-based Christy brand, which it acquired.

“There is a remarkable change in consumer demand. There is a niche 5-10 per cent of the population willing to pay for technology-led products. We are ready to bring our luxury brand Christy,” said Dipali Goenka, Managing Director, Welspun Global Brands.

Meanwhile, Bombay Dyeing is reducing the number of discount sales held in a year and removing its lower priced offerings.

“There has been an overkill with our sales, but now we are rectifying it since Bombay Dyeing is changing its imagery as an aspirational brand with price points which have been extended to ₹9,000 for our bed sheets,” said Ashok Kaul, CEO, Retail Division, Bombay Dyeing.

Growth of modern trade outlets is also fuelling the premium end of the home market. New entrants like Portico already claim to have captured a majority share in modern trade and have roped in designers such as Neeta Lulla to give boost to its premium offerings.