PDD Falcon expects online sales to contribute 50% of overall revenue in 5 years

Stainless steel home and kitchenware maker PDD Falcon expects online channel sales to account for at least 50% of revenue, according to senior company official over the next five years, with consumers going the digital route for their purchases.

The company, which sells a range of steel-based items such as lunch boxes, sippers, steel canisters, tumblers, choppers and oil dispensers, currently makes about 20% of its sales online and 80% in physical stores across India.

“That ratio will become, in the immediate future, 70:30 and I suspect over the next few years or five years it will almost reach a ratio of 50:50,” said PDD Falcon director Sneha Visaria.

Explaining the reasons for these expectations, she said, “Because consumers are really turning to online shopping.” While the company’s products are already available on Amazon, FirstCry, Flipkart, BigBasket, soon they will also be available on Myntra, she said, adding that PDD Falcon has also added features on its own website to speed up online sales.

With 80% of current sales coming from offline models, she said the company currently has a network of 50 distributors in India, including Tier I and Tier II cities to cater to the mass market, each distributor serving approximately 200 stores.

PDD Falcon, which forayed into the segment in 2017, expects to end this financial year with revenue of Rs 5 crore, she said, adding that over the past four years the brand has increased by 222%.

“In the coming years, we expect sales of around Rs 12 crore,” Visaria said.

With an eye on growing demand, she said the company will add another 8,000 square feet of space for packaging at its Mumbai factory over the next six months. Its current facility spans 45,000 square feet where it houses end-to-end solutions for manufacturing over 300 products in its portfolio.

Published on

January 30, 2022

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David A. Albanese