Ashley HomeStore, a leading chain of furniture stores in the US, has made a foray into the Nepali market by joining hands with SN Joshi and Sons.
Robin Lim Jit Piow, Vice President of Sales - Asia Pacific of Ashley, was recently in Nepal to inaugurate the company's maiden store in Teku.
Tamish Giri from New Business Age sat down with Robin to know about Ashley's expansion strategy in Nepal. Excerpts:

What drew Ashley to Nepal? What makes Ashley stand out from the other furniture brands available in the market?

I believe Ashley has always been eager to expand its presence throughout the Asia Pacific region. With just about 12 years of experience in this area, it seems like the opportune moment to seek out the right licensee, such as the Joshi family, who boasts over 20 years of experience in the furniture industry. The timing could not be more perfect. Our current product lineup no longer adheres to the old, bulky, traditional American design. Instead, we are evolving to meet the preferences of a younger audience. This forward-thinking approach is part of our long-term vision, not only for Nepal but for the entire Asian region.

I will pinpoint two primary factors that set us apart from others. First, our value-for-money proposition distinguishes us. Unlike positioning ourselves at the medium-high level in the US, we focus on the low to mid-price range. We are committed to providing a wide assortment of options to give our consumers ample choices. In today's competitive landscape, we firmly believe in ensuring that our products offer not only quality and comfort but also innovative design, delivering on the promise of value for money.

Why should Nepali consumers choose Ashley products? What are its unique selling points?

Nepal, like any emerging furniture market today, presents a unique opportunity. Even though I have only just arrived, it is evident that there is a gap in the market for a furniture concept akin to Ashley's in terms of the presentation of our assortment and the level of accessorisation. When combined with our distinctive selling and marketing approaches, along with the support of the right licensee possessing the necessary infrastructure, we can demonstrate to Nepali consumers that we are truly a distinct company. This sheds light on why we have consistently held the top position as a retailer in North America for 18 consecutive years. We are leveraging this success story and extending it to Nepal. As you observe the store, from the prices to the comfort and the performance fabrics we offer, there is something tailored for every Nepali family. Words alone cannot fully convey the experience; it is best for them to see and feel it firsthand in the store. Discussions about opening second and third home stores are underway already, illustrating our commitment to expanding our presence in Nepal.

SN Joshi and Sons are your local partner in Nepal. Why did you choose to partner with them over others?

We specifically chose to partner with the Joshi family because of their extensive 20-year background in the furniture industry. Moreover, their deep-rooted connections in property development and real estate align well with our belief that furniture is intricately tied to property development. Considering the remarkable surge in Nepal's property prices over the past decade, timing couldn't be more crucial. With a population of 30 million, and Kathmandu alone boasting a purchasing power of 1.6 million, our target demographic is significant. Even if just 20% of this population opts to purchase, it is clear that one store will not suffice. 

What specific products and services will Ashley introduce to the Nepali market? Will it be different from that available in the Indian market?

Specific products are what you have seen in our store in Teku. We are yet to figure out what works here. We are looking at the data of the US as well as the last 10 years of the Southeast Asia market. We have stores in Mumbai, Hyderabad and Bangalore in India. We have a lot of this consumer retail data that tells us what works well. In general, we do not tailor specific skills or products for individual markets. Our strength lies in our commitment to volume - we are possibly the largest manufacturer because of this approach. Everything we design is not only conceptualised but also built, shipped and warehoused in North America. We prioritise affordability without compromising on quality, aiming for what we like to call “affordable luxury”. Our target market is not the medium-high or high-end consumer. Instead, we cater to a broader audience, ensuring our costs remain affordable. 

We prioritise affordability without compromising on quality, aiming for what we like to call “affordable luxury”. 

Ashley caters to both B2B and B2C clients globally. What is your target consumer base in Nepal?

From an Ashley standpoint, we primarily operate in the B2C (business-to-consumer) sphere. While we do engage in B2B (business-to-business) activities through wholesale channels, our focus is on our corporate and retail stores in the US. Additionally, we provide retail training for our licensees worldwide.

Currently, our B2C operations account for around 20% of our business, with the remaining 80% being B2B. In Nepal, our initial objective is to allow customers to experience our products firsthand - to touch, feel and see what is available. If they find something they like, we can explore additional assortments, such as bundled items like coffee tables with sofas, recliners, rugs and accessories. Our approach hinges on how we merchandise and visually display our products. 

Given your 30 years of sales experience in the Asia Pacific region, how do you see the furniture market in Nepal and the Asia Pacific region?

The Asia Pacific market predominantly favours European and contemporary styles, particularly in upholstery and case goods design. While these are traditionally termed "transitional" in the US, our evolution has been substantial. We are now resonating more with younger generations, including millennials in their 20s and 30s. 

Looking ahead, Asia is poised for significant growth. Post-COVID, consumer preferences are shifting away from overly expensive, long-lasting products. It is becoming increasingly apparent that investing in furniture meant to last 20 years may not be practical. People's tastes change, and today's reality, influenced by the rapid turnover of smartphones, reflects this sentiment. I encourage customers to explore the competition because I am confident they will not find anything quite like Ashley in Nepal, which underscores why we are here today. Our presence fills a gap in the market, offering American transitional design that is distinct and appealing.

Ashley is one of the world's largest furniture manufacturers and the No. 1 brand in the US. How is your presence in the Asia Pacific region including India?

In the Asia Pacific region, our presence is substantial, with over 90 home stores and more than 500 retail points when considering dealers and all Ashley retail outlets. Collectively, we boast around 600 retail points with 90 dedicated home stores. Despite the challenges posed by the second year of the COVID-19 pandemic, we managed to achieve double-digit growth. While 2023 presented its own set of difficulties, it was a shared experience across the industry. Looking ahead, we anticipate robust growth post-COVID. In India, some of our previous projects are nearing completion, and we are witnessing increasing acceptance in South East Asia. Despite the dominance of European products in this market, we are making significant strides, with the market share of such products declining from 80% to 70%, signalling our growing competitiveness and acceptance among consumers.