Pepperfry is proud of its unique AR capability that sets us apart, aiming for convenient furniture buying for customers anywhere: Deepak Sharma, Chief Product Officer, Pepperfry

India has emerged as a thriving startup hub, witnessing the rise of numerous unicorns that have gained global recognition. The country’s technology sector has played a pivotal role in driving this startup success. With substantial progress in digital infrastructure, mobile connectivity, and internet penetration, India has created an environment conducive to disruptive innovations across various sectors such as e-commerce, fintech, healthtech, EdTech and many more. In an exclusive interview with Express Computer, Deepak Sharma, Chief Product Officer (CPO) of Pepperfry, shed light on how technology has propelled Pepperfry’s transformational journey as an emerging startup, revolutionizing the furniture and home decor industry.

How has product strategy played a critical role in maintaining Pepperfry’s success? Furthermore, what are the key elements you prioritize when developing new products or features for your customers?

Our customers are now omnichannel, and it’s crucial for businesses to keep up with them. Whether they are walking through a mall, commuting to work, or browsing our app or website on their mobile or laptop, it’s the same user consuming our offerings.

The premise has always been to be where the consumer is, and this philosophy has guided us. Furniture is our core category, and traditionally, it has been a catalog-driven experience. Customers would go through pages with a carpenter, discussing and choosing furniture, which would then be built for them. The quality of this experience depended on the contractor’s expertise. Now, as Pepperfry leads the organized sector in the furniture space, we have emulated this offline behaviour and translated it online. Our website serves as a catalog for users to browse.

However, furniture is a tactile purchase, and the desire to touch and feel the product is strong. This is why we have a wide reach, with around 200 stores across India. In terms of the supply chain, furniture is more of a logistical business. It’s not enough to show customers a beautiful piece of furniture; we must also ensure it can be shipped across long distances. To address this, we have made significant investments in our supply chain. We deliver to over 18,000 PIN codes and 90+ cities using our own fleet of trucks.

These investments and strategies have been carefully executed. In essence, our approach is to understand consumer behaviour and draw parallels across various channels. We aim to cater to all retail and omnichannel considerations, delivering a great experience through our own fleet of trucks. This is the foundation of our mission.

How do you manage the product assortment, and ensure that it caters to your diverse customer preferences. Are there any data driven approaches or tools that you use to inform your decisions?

One key aspect to consider in the furniture category is that purchasing furniture is not an impulsive decision. It is a deliberate purchase, and there is also the paradox of choice involved. While we offer the largest furniture catalog in the country, we are mindful of what we add and remove from it. We understand that there are multiple considerations when someone buys a piece of furniture. Initially, we could have followed the route taken by Ikea, with a single brand and a more homogeneous catalog. However, we recognized that India is diverse, with different preferences and choices. We chose to be a marketplace, providing a wide range of offerings to cater to various user cohorts. Our goal is to give customers as much choice as possible. Currently, we have about 20,000 furniture SKUs on the platform.

We understand that purchasing furniture is a personal and deliberate process. People want to be mindful of what they buy and how they go about it because each piece of furniture represents them and their home. Our approach has always been to offer customers abundant choices, supported by extensive analytics that identify demand trends and preferences. 

Ultimately, we prioritize the customer and provide them with the freedom to choose while ensuring economic sustainability for us. That’s our broad commitment when it comes to managing our catalog.

How do solutions like voice analytics and AI enabled chatbots that you use improve the customer experience in your contact centers?

In today’s digital age, we are often referred to as the generation of screenagers.” This term highlights our perpetual connectivity and the constant use of our phones. Everyone seeks instant answers and gratification. Our chatbots have played a crucial role in providing 24/7 availability for answering questions. When it comes to furniture, a deliberate and collaborative purchase, people have numerous queries before making a decision. Families typically come together to decide, and with the increasing number of nuclear families in India, each home has its own unique requirements.

Considering these nuances, the availability of AI-enabled chatbots is invaluable. We have partnered with a fantastic company called Haptic to create a seamless experience. Our chatbots are available around the clock, offering nearly instant response times. During peak seasons, we don’t need to scale up human resources significantly. While chatbots cannot handle every situation, we respect the user’s preference for human interaction and ensure it is not hidden behind layers of IVR prompts. However, for users with more generic questions, the chatbots provide consistent service. As users engage with us, we can offer a more personalized experience.

Digital is here to stay, and now we have a metaverse too. Do you think virtual selling could replace physical selling in the years to come?

I don’t think so. In fact, we have taken the opposite approach, focusing on creating a robust omnichannel experience through our investments. We firmly believe that it is and will continue to be a hybrid approach. While there is a segment of users who prefer buying from the comfort of their homes, there is an increasing number of people who value the tactile experience. They want to touch, feel, and try out products before making a purchase. For example, the texture of a bedsheet can only be truly appreciated when you run your hand over it and feel its softness. Some individuals may consider thread count and other factors, but nothing compares to the actual hands-on experience. This is why retail will always be relevant. The tactile experience offers unique benefits, including instant gratification. As I mentioned earlier, people’s attention spans have shortened, and having a wide range of choices is a positive thing as it promotes meritocracy.

However, with the advent of the metaverse, exciting possibilities arise, particularly in virtual selling for fashion and home furnishings. One will not replace the other entirely. Instead, the line between the physical and digital realms is becoming increasingly blurred. Integration between the two will likely increase, leveraging technologies such as augmented reality and virtual reality.

Cybersecurity is among the most pressing issues today. How are you dealing with it and safeguarding your and your customers’ data?

I believe that any system is only as strong as its weakest link. While implementing numerous technical checks and measures is important, it all begins with the people involved. Employee training is a crucial aspect, as it helps them understand the significance of cybersecurity and why it is essential to handle customer data with the utmost care and maintain their trust. Since we are constantly connected, our risk profile is exposed, making employee training a top priority.

 In addition to training, we have implemented various security measures, such as top-notch SSL certification, firewalls, intrusion detection systems, encryption, and one of the most secure payment gateways. We also utilise multi-factor authentication for internal systems, conduct regular audits, and perform penetration testing. While these measures are non-negotiable and necessary, training our employees remains at the core of our cybersecurity strategy. 

Pepperfry’s approach to product innovation is to stay ahead of the competition in a rapidly evolving market. So could you share any recent examples of innovative products or features that have been introduced by Pepperfry?

Our fundamental goal is to foster innovation and explore how we can incorporate it. It all begins with our people. While around 80 percent of our efforts are outcome-based, we also recognize the importance of output-based actions. These may not yield immediate benefits, but they lay the groundwork for future advancements. ChatGPT, which has gained immense popularity, is an area we are currently experimenting with and excited about. We hope to unveil something soon. Additionally, there are unique features specific to Pepperfry that we take great pride in. One such feature is our AR (augmented reality) capability, which sets us apart from other players in the market. Our vision is to make furniture buying incredibly convenient for our customers, regardless of their location. 

As a leader in this product space, what advice would you give to aspiring product managers or individuals looking to pursue a career in product development? Additionally, what is your view of the future retail industry?

Fundamentally, I believe the best advice I’ve learned is to be fanatical about the consumer experience. It’s a critical factor for success, forming a loop where satisfied consumers drive business and benefit merchant partners, ultimately coming back to the consumers.

Aspiring product managers should take note: if you’re not engaging with consumers or analyzing qualitative and quantitative data, you’re doing a disservice to yourself and the product you manage. Another valuable lesson is to stick with a problem and avoid seeking instant answers. Solving complex issues often requires time and persistence. Grant yourself that time and also allocate a portion of your efforts to forward-looking, output-driven work.

Lastly, a crucial factor to consider is the evolving mindset of people, particularly Gen Z, as they enter the workforce. Their rejection of hierarchical decision-making is truly refreshing and signifies mutual trust, understanding, and empathy in their approach to work.

The retail industry will undoubtedly continue to be influenced by ongoing digital transformation, with blurred lines between physical and digital realms, including the integration of AR, VR, and possibly the metaverse in the future. Omni-channel strategies, personalization, and data-driven decision-making will undoubtedly play pivotal roles in shaping the industry moving forward.