Chumbak plans to double its turnover by the end of FY22 by doubling down on marketing

• Established in 2010, Chumbak started its journey as an India-inspired souvenir and accessories brand.
• Over the last decade, the brand has transformed into a leading multi-category retailer with a dominating online presence along and 70+ exclusive brand stores. It features homes and lifestyle categories such as home décor items, accessories and apparels.
• We talk to Vasant Nangia, CEO, Chumbak about the brand's journey so far and goals for FY22.

Chumbak was born when Co-founders Vivek Prabhakar and Shubhra Chadda casually looked at their fridge full of magnets from different countries. They were quick to identify that India needed a brand that gave a glimpse of the whole country in the shape of small souvenirs and travel products -- reflecting on its rich heritage and tastes. By integrating desi art into a forgein concept of souvenirs, Chumbak’s main purpose was to instil national pride and celebrate India’s diverse culture and vibrant colours. Officially launched in 2010, the brand has grown exponentially since its inception. It is a family to 150+ employees and has 70 retail stores. It sells home décor items, accessories and apparels.

Chumbak on-boarded Sara Ali Khan as its first brand ambassador earlier this year to convey how it is now becoming a home and lifestyle brand and dominating offline and online presence.

After launching a digital campaign with a Bollywood star, the brand is now aiming to increase its turnover by 100%.

“We plan to double our turnover by the end of this year, our overall marketing spends are definitely increasing significantly. We are also reaching out to our loyal customer base and building up our digital presence including social media, and we plan to resume our in-store marketing once footfalls are back to pre-pandemic levels. We believe there is a strong overlap between the celebrity’s followership and our potential audience,” said Vasant Nangia CEO, Chumbak.

For a brand that has grown purely on word-of-mouth, Chumbak will continue to reach out to its loyal customers base.

Nangia said, “For 2021, we’re optimistic about pre-pandemic offline footfalls and hence building our offline business while continuing scaling online on our own as well as third-party platforms. We aim to invest in customer-centricity to allow for optimal journey mappings, repeat and loyalty interventions.”

Since the COVID-19-induced lockdown last year, a majority of employees have been working from home. The furniture category moved from being a want to becoming a need. As a result, Chumbak also witnessed an increase in demand for its furniture and home decor.

On which category brings in the lion’s share and COVID’s impact on the brand, Nangia said, “Our business is a clean 50:50 between our home and lifestyle ranges. However, given COVID-19 and its impact on our audience, we’ve seen a strong uptick in our home categories. As people spend more and more time in their house, they are developing new hobbies, be it gardening or cooking. Our pots and planters, silverware and crockery range is their preferred choice of purchase.”

In 2019, Chumbak opened its 50th store and after COVID-19, it has been focusing on building an omnichannel presence. It is now planning to scale its online reach and partner with more third-party platforms.

Nangia said, “In 2019, we opened a store a week landing at a total of 50 new stores so our offline growth trajectory was looking very strong. With the lockdown and store closures, we devoted more time and attention to scaling our online and back-end tech capabilities. We launched omnichannel in October last year which has allowed us to better manage our inventories and last-mile deliveries.”

“We have witnessed rapid growth in e-com-enabled digital sales. In terms of revenue from each, it is close to 50:50 between the two channels. As walk-ins in offline continue to inch towards pre-pandemic levels, we’re hoping for a robust growth in next FY metrics,” added Nangia.

During the lockdown, Chumbak also launched a new brand identity to stay in tandem with the global design language and trends.

Telling us the idea behind this shift, Nangia said, “This change was a part of the shift in the positioning of the brand. We want to be represented as a globally inspired home and lifestyle brand which represents the growth not just the brand but also our customers have had in the last decade. We have received an overwhelming response from our ardent brand lovers and community.”

This fiscal, Chumbak will increase its marketing spends, continue to focus on digital marketing and increase its in-store marketing.