Punjab is synonymous of prosperity, spending and experience the new products and innovations in all aspects. The state's per capita income is also more than others in the country. So, how much impact is there in consumers' behaviour in terms of wood panel and building material industry? To find out the way forward Ply Reporter organised e-Conclave 'THE TALK OF TOWN' for Punjab & Tri-City' on 11 October 2020 in association with the Everest Industries as Principal Partner and Star Mica as an Associate Partner. The topic for the discussion was the 'Changing Customers Behaviour and Needs in Punjab- A Brainstorming Session for Sales Growth for Dealers & Traders in Interior and Panel Segment.'
The conclave was attended by leading personalities from the region as panellists which included were Ar Dilbir Singh Bhui, Director, Cosmic Design Pvt Ltd, Lucknow; Ar Amrit Panwar, Architecture Anew, Chandigarh; Mr Rahul Chopra, CEO, Board and Panel, Everest Industries Ltd; Mr Vikas Marwah, Head Sales & Marketing, Everest Industries Ltd (B&P); Mr Sumit Mangal, Director, Star Laminates; Mr Jadish Arora, Arora Ply World, Chandigarh; Mr Rajiv Gupta, Proprietor, Gupta & Company, Ludhiana; Mr Pankaj Jain, Jain Sales, Panchkula; Mr Birjot Singh, Chawla Brothers, Jalandhar; and Mr Binish Ohri, Kundan Lal & Sons, Amritsar. The panel was moderated by Mr Pragat Dvivedi, Founder Editor and Mr Rajiv Parashar, Editor, The Ply Reporter.
Speaking on market scenario post covid, Ar Dilbir Singh Bhui said, "Everything is normal, and nothing has changed, but technically the public behaviour is between a normal and abnormal. The word 'new normal' used these days is nothing but a passing phase, and with time there will be nothing like that as the market condition is approaching towards normal which after correction will stay ahead. In current situation organising virtual seminar and discussion is good but the product we sell and use in interiors and exteriors will not be functional virtually."
"We used rugged material in one of the projects in Mohali, which is 80% complete. But across India, the choice has changed to smooth finish surfaces which are in trend. Fortunately, the product coming to the market is environment friendly also. In many of the government projects rugged is used with smooth surfaces and finishes also, and for that, they employ good interior designers. We should focus on business as I don't think anything is on hold due to money. The market is reviving in a better way as 80% of my projects have started, which were on hold, and the Government Projects are working on full swing. Our study says that in Panipat, Karnal etc., interior designers' work is going on as it was earlier," he added. Ar Amrit Panwar said, "The projects that picked up are mostly residential because in lockdown people stayed at home and realised that they need home interiors. The change is happening for landscape design also for farmhouses which are many in Punjab."
Mr Rahul Chopra said, "Punjab is a very prosperous state and people there like good houses and good environment. They appreciate beautiful interiors as well as exteriors. We have products like wood which don't have the problems of wood. With wood, there is a problem of rain/termite and catches fire easily. We have Cement-based products with wooden textures. It can be used in exterior without any issue of degradation with heat and weathering effect; in fact, it becomes stronger in that situation. People have started adopting it in smaller towns of Punjab like Batala, Gurdaspur also. It g
Mr Bhavesh Jha from Everest Industries Ltd gave a presentation on the range of product of Fiber Cement Board by Everest Industries. The company provides complete building material solutions and manufactures several products. The new range of Fiber Cement Board (FCB) is like ply with various thicknesses from 4 mm to 20mm. Its manufacturing process is like laminates. 4mm board is made of 4 layers. In the premium category board worldwide, only four companies are manufacturing FCB by pressing it. In India, Everest is the only company who is having this technology. This is a very good quality board that can be exposed to sunlight. In the designer segment, they have several boards like LAKE & HILL, OCEANIC, CASCADE, ELECTRA, CEMENT PLANK, and ALTERWOOD are available. "These ranges are such that it will increase not only the top-line but also the bottom-line and increase the profit margin to many folds," added Mr Jha.
Mr Sumit Mangal said, "I would like to thank Ply Reporter as they are creating awareness in the industry and continuously evolving with new ideas to remain in the business continually. In the time when everything was standstill Ply Reporter was making efforts to raising their hands in waking up all and co-operating with one another so that the business cannot stop. In a video message communication to the industry started by Mr Pragat Dvivedi ji was the game changer to get the cash flow in the channel that supported the manufacturers a lot. Today the market has full-fledged demand, and the payment is also coming in the same manner. So, there is nothing to get fear in the market."
Punjab market is also shifting to OEMs as people are not willing to use carpenters at home due to which 50% of customers have moved to OEMs, and economical products sales are more. In reality, the market is tough, and those who can give good product and timely delivery will definitely survive. But Mr Birjot Singh warned everyone that in the near future the market scenario could change. The customers' behaviour has changed, and expenditure has reduced but not the businesses. Rural Economy is much more strengthening, spending there has increased, and they want quality product and better look, so the architect's support is much needed there.
Ar Amrit Panwar said "There are definitely two types of society in Punjab, one is very high end and the other who looks for value for money, but the high-end customers also look for value for money if they have to use for large quantity. "In the market, the customers have increased, and the purchases have also increased with the increasing number of sales of flats. Ar Dilbir Singh Bhui said that two segments of customers are everywhere, but in Punjab it is visible. Today NRI's are much vigilant, but their investments are coming, when they return to India, they compare living lifestyles and want the same here as well. Now the young generation is trying to build their farmhouses in Punjab on that concept. People want facilities, and they avoid expenditure in plenty and use the best quality material and home appliances as they think it is secure and can avoid servicing.
Mr Birjot Singh stated about the two aspects of pandemic and said, "We accept that it is a crisis and everyone is daring to face it. Today people in the industry are very supportive with the awareness created by Ply Reporter. If I talk about business people, there is saying that crisis is an opportunity in disguise. At present, there is a shortage of supply, and nearly 80% of production is there in 40-50% of factories. But, the demand has gone to over 100% and at some places 90%. So, the demand is there as before, and there is a gap of 10-15% in the demand and supply scenario, that is an opportunity for traders and dealers. The most significant benefit is that the market has shifted to cash policy from the earlier credit policy.
"As far as Punjab is concerned NRIs are moving outside with new generations. This is the basic factor which is killing the local economy. The expenditure on houses is reducing day by day. In covid period also there are 10 -15% of customers who still want to use a good quality product. But, few things are there in everyone's mind as those who were buying veneer of Rs 250 have a choice to use Rs 100/ sqft or Rs 150/sqft. Veneer sales are there, but the budget has come down, so there is cut down but not the growth of the business. The market is also shifting to OEMs as people are not willing to use carpenters at home due to which 50% of customers have shifted to OEMs. The companies and architects also understand the customers. So, those were looking for the high-end products are supporting customers and asking for mid-range," Mr Birjot added.
"The market is very competitive, no doubt Punjabis are passionate, but everyone looks for value for money. The spending trend has changed, so we have to keep in mind that the market will get affected in future," he reasoned to change in current lucrative situation for traders & retailers.
Mr Jadish Arora said that post-COVID the business has shifted to cash and the demand is higher than supply. From the NRI segment the consumption has reduced but with the government initiative to "Self Reliance" – AATMANIRBHAR BHARAT we will have much more benefit. Today everyone is making the maximum efforts in their businesses and also taking care for health issues. In tri-city, in Punjab, the construction is at full swing. The work from home has also supported the demand as people are buying homes in Punjab and also decorating them.
Mr Pankaj Jain, Jain Sales, Panchkula said that only 15 days of lockdown period the customers were not visiting but the telephonic orders were much more that we were not able to supply properly. In the last two months, we are doing more business than before. In my opinion, the customers' behaviour changed for a few moments, but gradually that again has come back on track. In Panchkula area, high-end flats are being made, and they use quality products. In Panchkula, apartments and Kothis both have their trend, and the demand for material has increased to pre-covid level now
Punjab market is also shifting to OEMs as people are not willing to use carpenters at home due to which 50% of customers have moved to OEMs, and economical products sales are more. In reality, the market is tough, and those who can give good product and timely delivery will definitely survive.
Mr Vikas Marwah explained that Punjab per capita income is highest in India, and it is way above other states. Secondly, Punjabis are very competitive in terms of their mindset, adoption of new technology. The buying behaviour of Punjab always remains innovative. People want unique, and something different and are still open to other choices. The customer segment of Punjab ranges from mid to high end. They also experiment, and with Everest product, there is a vast scope to experiment. FCB is pre-dominant segment worldwide, and that culture is definitely coming to Punjab. And Mr Rahul Chopra added that this is a product that is incomparable with anything in the world today. If you take a product, you can finish it with Rs 100/sqft of a coating or even higher; it depends on what look or finish you wish to give to the space. But FCB can take any kind of finish & look, and one can use any type of substrate on it. One can paint it or can use wallpaper and with one can get as rich finish as one can like, that will be everlasting.
CONCLUSION::
Ar Amrit Panwar said that there is definitely an impact, but the quality will survive the hard time. The team effort and collaborative approach among architects, designers, project manager, vendors, distributors and dealers is a must to sustain and survive. But Ar Dibir Singh Bhui said for an architect there is always a hard time as someone who gets selected for a particular project and someone gets rejected. If an architect brings innovations and expertise to go to villages, that will be very promising and supportive of them.
Mr Rahul Chopra talked about the possibility in doing that to go to villages, "Rural customers are more deserving and want to make their houses much better and attractive, long-lasting and sustainable. Villages in Punjab are much more prosperous in the country today. The customers are not looking for higher value but value for money, that is very true whether it is Punjab, UP or Bihar. Today, worldwide also FCB is gaining prominence compared to other boards. India is just seeding the market with FCB, so the market has a lot of headroom for growth and quality. In rural India also people are making good quality homes, so rural Punjab also needs good material and architects support.