“A house is built with walls and beams; a home is built with love and dreams”
-Ralph Waldo Emerson
It’s this profound thought by Ralph Waldo Emerson that makes us believe that many entrepreneurs are going to build in Home as a way to, both, solve problems, as well as fulfil the aspirations of Indian consumers. Home is now becoming an important area of investment, as we’ve seen this new generation of Indians develop a unique relationship with their living spaces and how they use them.
What has changed?
We’ve seen three major consumer values come more sharply into focus with young consumers. The first of these is access, with these digital natives having instant access to information, trends, and influences from anywhere in the world thanks to social media and messaging. The second value is independence, so core to Millennials and Gen-Z. This attribute is further enhanced by the rise in the incidence of nuclear families that live and work separately from the rest of their families. The third key driver is the tendency to upgrade, regularly choosing better, more premium products and services for themselves.
Each of these values create new needs and niches for new brands to fulfil, and in the context of the home, we see several interesting areas emerge. For instance, independence influences decisions related to working from home, like noise-cancelling products, or ergonomic furniture. By the same coin, it also drives services like outsourced cleaning, chores, and the like. Similarly, the “upgrade” aspect can apply to areas ranging from better health to connected homes – and new behaviour in the form of shorter replacement cycles.
Double-clicking on each of these values opens a very interesting array of possibilities for new brands.
Access
Our research has thrown up a few nuances to home shopping. For instance, renovators most often focus on the kitchen, followed by the living room and the bathroom. Additionally, these renovation cycles are becoming shorter and shorter. We’re also seeing more casual buyers, who shop for home décor, or linens, or small gadgets just as they would shop for clothes or personal care.
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From our portfolio: |
Independence
The home office used to be a niche luxury before Covid made it a requisite of most homes. Hybrid work has created multi-functional spaces in every home that double – or triple! – up as office, study, and lounge. Comfort is key, as adults work, kids study or pursue their hobbies, families video call, or simply hang with friends.
We’ve seen independence influence parenting as well, with DIWKs (Double Income with Kids) prioritising time together over chores like cooking and cleaning. Unlike previous generations, they are quite happy to skip ownership, and rent what they need, for as long as they require them.
Sustainability is another expression of this independence as new-age consumers reject plastic, pursue cleaner air and purer water, and demand energy efficiency in all aspects.
| From our portfolio: Design Café is an award-winning home interior design brand that optimises space and solves customer needs. |
Upgrade
This is one of the most interesting trends we’ve been seeing. Across SECs, consumers are reaching out for a better life for themselves. This can take the form of premiumisation, or indulgence, or tech enablement. We’re seeing this upgrade play out as consumers move from utility-led brands to design-led brands, and brands start leveraging design or “smart” features as differentiators.
Consumers are looking for personalization, indulgence, white glove services and most importantly, brands that enhance living on three simple principles: convenience, comfort, and conscious living.
For examples, we’re seeing folks shop for high-end tech with brands like Dyson, or the home-grown Beyond Appliances.
| From our portfolio: The Sleep Company is the inventor of SmartGrid technology, and aims to change the way people sleep, sit, and experience comfort. |
What is Fireside looking for?
We believe that iconic brands can be built around these values, and here are some ideas we’d be very excited about:
- A platform furniture brand with a premium and distinctive design language
- A home appliances brand blending functionality, tech, and aesthetics
- Tech innovations for the bathroom with an aspirational design language
- An innovation-led brand that solves for pollution and allergens in fenestration and soft furnishings
- Aesthetically appealing, yet non-toxic cookware at mass-premium price points
Home will only grow as a consumption area, and this is a great time to build a unique and meaningful brand. If you’re building in this space, or know a founder who is, let us know and we would love to discuss our thesis with you.
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