Big flooring brands’ fight for market share continues
The industry unanimously agrees that the unorganised flooring market occupies nearly 50 per cent of market share in India. And, in the past four to five years, the big brands have not been able to increase their share against the unorganised market.
Also, the flooring market has always been price-sensitive. “This is because the offerings are similar with no novelty,” reasons Mukesh Savlani, CEO, Welspun Flooring. “And the process of getting a new floor is also filled with confusion with many intermediate agents like contractors, dealers, labourers, etc. Because of a lot of unorganised players, the flooring market is not completely brand-conscious and brand switching is high.”
That said, a noticeable transition is taking place from the unorganised to the organised sector. “This transition is owing to multiple factors such as the complete ban on coal gasifiers in Morbi and shift on gas, GST and increasing demand for value-added products,” confirms Kamlesh Patel, Chairman and Managing Director, Asian Granito India. “These government policies will impel unorganised players to shift towards the organised market. This will reduce pricing pressure going ahead on organised players, resulting in healthy competition and a level playing field.”
Government flagship programmes, including smart cities and Housing for All, and large townships being developed by private builders are indicators that the building materials industry will continue to prosper. As Salvani observes, this, coupled with growing disposable income, consumer expenditure on better quality and aesthetically appealing products, and the booming rate of urbanisation and infrastructure development, has created significant momentum in demand for flooring in India.