Life Style Furniture has been a dominant player in India’s office chair and furniture market, serving both B2B and B2C customers. The company, which also owns the emerging Xylus brand, operates across India and holds a significant market share in its sector.
While Life Style Furniture has enjoyed a robust customer base and steady revenue streams, its sales growth had plateaued, and operational inefficiencies began to threaten its scalability.
Stratefix Consulting was brought on board to overhaul Life Style Furniture’s operations, redefine its growth strategy, and streamline processes across its B2B and B2C segments.
The Challenge: Stagnant Sales Growth and Operational Inefficiencies
Despite its strong market position, Life Style Furniture faced several internal and external challenges that inhibited further growth:
- Stagnant Sales in B2B: The company’s sales from B2B partnerships had reached a plateau. There was a lack of territory planning, and the sales team was overly focused on Recurring Business Development (RBD) rather than acquiring new clients through New Business Development (NBD).
- Dependence on the Founder: The business heavily relied on the founder for decision-making, firefighting, and operational oversight, which left little room for strategic growth initiatives.
- Minimal Use of Technology: Operations, including order placements and inventory management, relied heavily on traditional methods such as phone calls and WhatsApp communication. This often led to miscommunication, missed deliveries, and a lack of real-time stock visibility.
- Lack of Marketing and Branding Initiatives: The company had minimal online presence, no SEO strategy, and no branding or customer engagement initiatives. This hindered their B2C growth, leaving a significant gap in the market.
- Inefficient Sales Structure: Life Style Furniture lacked a dedicated sales review system and had an under-resourced sales team of just three people for B2B sales, making it difficult to scale.
Market Overview: India’s Furniture Industry
The Indian furniture market is projected to grow from $17.77 billion in 2023 to $37.72 billion by 2028, at a CAGR of 13.3% (Mordor Intelligence, 2023). A significant driver of this growth is the rise in demand for ergonomic office furniture, fueled by the work-from-home culture and growing corporate sector.
The office furniture segment, which includes products like office chairs, desks, and modular workstations, contributes to 15% of India’s total furniture market. However, the market is competitive, with players like Godrej Interio, Featherlite, and Durian leading the charge. To thrive in this environment, businesses must adopt technology-driven processes, a strong sales infrastructure, and robust marketing strategies.
The Stratefix Solution: A Holistic Sales and Business Growth Strategy
Stratefix Consulting designed and implemented a multi-phase growth strategy to address Life Style Furniture’s operational and strategic challenges.
Step 1: Comprehensive Market Research and Competitive Analysis
Stratefix began with an in-depth market analysis and competitor benchmarking, covering over 10 competitors in the furniture sector. The research identified gaps in Life Style Furniture’s offerings, pricing strategy, and geographical coverage.
Additionally, Stratefix conducted extensive customer feedback analysis, involving dealers and institutional clients. This provided critical insights into customer pain points, unmet needs, and areas for improvement in service delivery.
Step 2: Strategic Business Planning and Execution
A strategic business plan was developed for both the B2B and B2C segments, focusing on:
- Targeting New Territories: Stratefix identified untapped markets and initiated expansion into 17 cities where they were already present but had limited reach, including Surat, Ahmedabad, Indore, Mumbai, Nasik, and South Gujarat.
- Institutional Sales for Xylus and Life Style: A new Dealer + Architect Network was established to drive sales growth, particularly in the institutional and large-scale project segments.
The plan also included an expansion into the retail showroom model, with a new Ahmedabad showroom scheduled to open by the end of financial year 2024.
Step 3: Building a Winning Sales Infrastructure
To overcome its sales challenges, Stratefix helped Life Style Furniture restructure and expand its sales team, including the recruitment of 4 new sales professionals.
Key actions included:
- Developing an Organizational Chart: Identifying key roles within the sales department and creating job descriptions (JDs) for vacant positions.
- Sales Training and Onboarding: The new sales team was trained on product knowledge, pitch delivery, and customer engagement. Stratefix even accompanied the team on field visits to address performance gaps in real time.
- Implementing a Reporting System: An MIS system was introduced to track sales performance, improve accountability, and provide detailed insights for top management.
To incentivize performance, Stratefix developed a customized incentive model with realistic targets and attractive rewards under its Rewards and Recognition (RNR) program.
Step 4: Technology Integration and Process Automation
To eliminate inefficiencies caused by traditional communication methods, Stratefix introduced centralized IT systems, including:
- Customized ERP Integration: This enabled real-time stock visibility and automated order tracking.
- Recommended POS Systems: Standardized billing and reporting across all retail outlets suggested by Stratefix.
- CRM Implementation: For better lead management and customer relationship tracking.
These systems streamlined operations and significantly improved the customer experience, reducing missed deliveries and enhancing service reliability.
Step 5: Marketing and Branding Initiatives for Life Style Furniture
Recognizing the importance of branding in a competitive market, Stratefix launched a comprehensive marketing and branding strategy:
- Online Branding and SEO: A dedicated SEO strategy was implemented to increase Life Style Furniture’s online visibility and improve lead generation.
- Dealer and Distributor Engagement: Stratefix organized a dealer meet, which strengthened relationships and improved communication with key stakeholders.
- Customer Engagement Campaigns: Both online and offline initiatives were rolled out to drive customer loyalty and repeat purchases.
Step 6: Reporting, Audits, and Continuous Improvement
Stratefix ensured that processes were not only implemented but also sustained through regular reporting and audits:
- Sales Funnel Creation: The team designed and implemented a robust sales funnel, incorporating lead generation, nurturing, and conversion strategies.
- Audit Mechanism: Regular audits were conducted to ensure adherence to the new systems and identify opportunities for improvement.
- Performance Metrics: Detailed performance reports provided actionable insights to the management, fostering a culture of continuous improvement.
Results: Accelerating Life Style Furniture’s Growth
Stratefix’s interventions yielded remarkable results within a short span of six months:
- 30% Sales Growth: Both B2B and B2C segments saw a combined sales growth of 30%.
- Geographical Expansion: Life Style Furniture expanded its exposure within existing 17 cities building trust and long-term partnership with new dealers alongside existing ones. Established a robust dealer network with over 150 dealers.
- Improved Operational Efficiency: The introduction of ERP and CRM systems streamlined operations, reducing missed deliveries and improving customer satisfaction.
- Stronger Sales Team: The newly structured and incentivized sales team drove significant revenue growth and improved customer engagement.
- Enhanced Market Presence: A targeted SEO and branding strategy increased online visibility, strengthening Life Style Furniture’s market position.
By 2025, Life Style Furniture is on track to double its retail footprint and further penetrate India’s booming furniture market.
A Partnership for Sustainable Growth with Stratefix Consulting
Life Style Furniture’s collaboration with Stratefix Consulting marked a turning point in its business journey. By addressing the core challenges and implementing a robust growth strategy, Stratefix enabled the company to achieve scalable and sustainable growth in both B2B and B2C segments.
“Stratefix has been instrumental in helping us transition from a stagnant business model to a dynamic and growth-oriented enterprise. Their hands-on approach and deep industry insights have positioned us as a future leader in India’s furniture market.” – says Mr. Mukesh Bangar, Director & Founder, Lifestyle Furniture (Xylus Chairs)
As India’s furniture industry continues to grow, Life Style Furniture is well-positioned to capitalize on emerging opportunities, ensuring its place as a leading brand in the sector.
