Soon will enter Middle East market through brand licensing
Headquartered in Jaipur, part of India's golden triangle, Bella Casa is a renowned home furnishings brand, servicing all 15,000+ pin codes in the country. Saurav Gupta, CEO, Bella Casa, speaks to Paulami Chatterjee about the brand's key differentiators, its 360-degree brand building approach and future plans.
When was Bella Casa established? Who are the founders/promoters?
Though we were in the business since 1957, Bella Casa was formed in 1996. The founders/promoters are Harish Gupta (chairman), Pawan Gupta (managing Director), Saurav Gupta (CEO) and Gaurav Gupta (COO) of the company.
What was the impact of Covid in terms of sales, staff cutdown etc?
Sales: During the peak of the pandemic, we produced bed sheets, pillow covers, PPE kits and face masks to supply them in Rajasthan, Gujarat, Punjab, Jharkhand, West Bengal. In all, we made close to 5,00,000 units during this time. Despite an initial setback in the first quarter, we ended the third quarter with 39 per cent more revenue than the same quarter last year.
Staff cutdown etc: We had to initially shut shop since the government mandated that, but fortunately, we had no staff cutdowns. Our entire 2500-people strong workforce came back to work by July itself.
If you are looking for vendors, what are the top 3 qualities you are looking at beyond the givens of quality, lead time, compliance, etc?
For us, it conforms to the strict quality standards and scalability to meet our rising demands and shorter lead times.
What was the inspiration that led to the founding of the brand?
In the 1990s, like most fashion products, India's bedding category was underserved and dominated mostly by low-quality products manufactured using generation-old technology and out-dated designs. Such products did not offer any value to the consumer, neither by way of a better sleep solution or a decor item. Our company had a vision for creating exciting products for Indian consumers which spoke a contemporary design language and were made of superior cotton quality and a scientific modern manufacturing process. Armed with a detailed knowledge of cotton, yarns, dyes and chemicals, we set out to bridge the gap and realised our vision of coming up with a brand which can delight the Indian consumers.
Fortunately for us malls had just made an entry at the turn of the century, and it was increasingly becoming possible to sell the kind of contemporary product line that we had in mind. Today, Bella Casa is one of the well-known brands in home furnishings category in India. With a strong focus on innovative designs, following best manufacturing practices and enhancing distribution to every nook and corner of the country, our goal is to become a market leader in India.
Which are the categories the brand is into? Which category sells the most?
We are into bedsheets, dohars and quilts. Bedsheets sell the most followed by dohars and quilts.
How does your supply chain network work? What regions of the world is part of your supply chain?
Bella Casa products are currently available in 200+ districts of India across 2000+ stores in general trade and 1000+ stores. As we advance, we aim to be present in all 718 districts. As online shopping has become immense, we have also marked our presence in major e-commerce platforms in the country. Through our website, we service all 15,000+ pin codes in India. We will soon enter the Middle East market through brand licensing arrangements with technology partners in that part of the world.
How is the supply chain expected to change with increasing digitisation, AI, VR etc? And how is this going to impact the business of sourcing?
During COVID-19, supply chains were halted, and many brands suffered. With simpler, leaner supply chains being dished out, COVID-19 appears to trigger brands not yet digitally-focused to begin exploring, if not eventually adopt these solutions. Enabling a smooth and smart supply chain will be the first job of any disruptive technology.
Digital transformation strategies that leverage the power of AI, automation, analytics, and in some cases, even blockchain could be the way forward for a customer-ready stance in the industry today. A healthy supply chain needs a process that can define an optimal inventory level, and technology can be utilised to track products coming in.
What are the price points for each product category?
Bedding: Rs 999-Rs 1499, Dohars: Rs 1299-Rs 1999, Quilts: Rs 2499-Rs 2999
Who are your target audience?
Our target audience (TG) are educated married females in the age group of 23-45 years.
Where are your manufacturing facilities based at?
We have three major manufacturing factories situated in Jaipur.
What is the annual production capacity?
The company has a massive annual production capacity of 12 million units.
What is your retail presence like?
Bella Casa has a network of 80 authorised dealers/wholesalers and reaches out to around 3000 retailers across the country.
What is the USP of your products?
Our innovative design, superior quality of cotton and a scientific modern manufacturing process set us apart from other brands. Our historical and detailed knowledge of cotton, yarns, dyes and chemicals, has helped us achieve considerable scale of popularity and growth.
What kind of machinery does your manufacturing facility boast of?
We at Bella Casa are trying to move away from traditional manufacturing to the lean system with focus on eliminating unnecessary waste, including but not limited to time loss, excessive raw material inputs and preventable defects. It will further enable us to reduce lead and cycle times. It will help to reduce inventory levels at every stage of production, improve workforce productivity, and optimise equipment and space use.
Over the last thirty years, the lean approach - developed by Japanese automakers - has permeated the manufacturing sector in developed countries, but is much less commonly used in the developing world.
How much is spent on machine up-gradation and maintenance annually?
All regular protocols of upgradation and maintenance are followed for efficient working and output. A regular CAPEX of Rs 4 crore/year has been spent on machine upgradation and maintenance annually for the last four years.
How do you sell your products online?
We sell through our company website Bellacasa and through major e-commerce portals such as Flipkart, Amazon, and all other e-commerce platforms.
Which are your major markets?
We have a presence pan-India with better penetration in north and west.
Sustainability and circularity are the buzzwords today. How do you incorporate them into your product lines?
We believe in offering the best quality products to our customers, and we firmly advocate sustainability. We use Azo-free dyes, recycle water, energy-efficient machinery, use organic cotton and source raw material from FSC Certified sustainable forests.
What are your long-term sustainability goals?
We aim to implement Environmental Profit & Loss (P&L) and start on Cradle to Cradle designing and thus support the circular economy. (PC)
What is the breakup of your product categories (sales) for the export market?
We export 100 per cent home furnishings.
What is your market positioning?
We sell mid-premium, affordable, good quality and innovatively designed products.
What are the steps towards brand building?
We have taken a 360-degree approach emphasising on all four significant functions for effective brand building: design-manufacturing-distribution and effective promotion as follows:
Promotion:
After a very successful partnership with film star Jacqueline Fernandes, we will be engaging with another leading Hindi film actor as the new face of Bella Casa. The campaign will be innovative, path-breaking and promoted on all forms of media.
Distribution:
We have multiplied the distribution of the organisation by expanding our digital footprint. At the same time, we continue to expand the brand's presence, district to district now covering almost one-third of India. Modern trade remains a significant segment with our reach in now 2000 outlets.
Manufacturing & Operations:
We continue to invest in new technology to support cost-effective, high-quality manufacturing. Our campus in Jaipur now occupies 5,00,000 sq ft area and can produce 1 million units/month. Operational excellence remains a crucial cornerstone of our strategy, emphasising on building a fast fashion capability and a shorter market lead time.
Design:
This aspect is the soul of Bella Casa. We have created a design studio capable of churning out innovative and original print artworks that appeal to the millennials and middle-aged group.
As part of our innovation first approach, Bella Casa had also licensed international brands such as Disney, Marvel, and Hallmark Design Collection in India for their superior range of bed linen in the recent past.
What has been your growth story in the last three years (excluding 2020)?
We had expanded our capacity to 6,00,000 units a month at the beginning of 2019. Around November 2019 we had achieved good utilisation, and we were raising further 8,00,000 pieces a month, with 2500 people churning out 20,000 units a day.
