Consumer is the winner in an organised market

The marble market in the country is primarily unorganised and fragmented even though the industry is growing in tandem with GDP of the country. Adjusting for inflation, it is growing at 7 to 10 per cent growth rate. But marble buying is synonymous with negotiation, haggling and often enough buyers  are left wondering if they have got the best price for the product purchased. 

There are very few pan-India players in this segment. This makes the task of buying marble more tricky. When the market lacks standard rates for marble, the customer has no benchmark against which he can compare. There are no benchmarks for quality or price. Unscrupulous dealers may sell inferior quality marble and claim that it is Italian Michelangelo. There is no way to verify the price or quality that such dealers may claim.  

Moreover, the Indian consumer today is a millennial customer used to a global, standardised buying experience. He is increasingly accustomed to convenient transactions, hassle-free buying and a business that provides end-to-end solutions, including after sales service. "Unfortunately, the buying experience in an unorganised market is nowhere close to any of the aspired-for experiences”, says Gaurav Agrawal, Director- Stonex India Pvt. Ltd., one of the three largest imported luxury marble brands in India. In an interaction, he talks about the key pain points of this market and how price variations can be checked. Excerpts:

What are the key pain points of this market?

Quality assurance of the product and rational pricing are the two pain points - both related to each other. These pain points occur due to low awareness of the product, as retail customers are unaware of the varieties and qualities of marble. As for grievance redressal, since the market is largely unorganised, it is nearly impossible for a customer to get redressal.

In order to offer solution to these problems we have introduced 'True Price Mechanism' which is a result of assessment of each marble lot on certain parameters which determine the quality of marble. These parameters are thickness, size and squareness of the slab etc. Apart from scientific mechanism of arriving at a price, transparency, too, is very important. 

What is the true value price tag initiative? 

True value price tag initiative is based on quality benchmarking with corresponding price tags for marble. Pricing is based on parameters like colour variation and ingrained vein pattern in marble slab along with thickness, size and uniformity of shape. 

What is your business model?

We import 400 different types of products in marble, onyx, travertine, granite and quartz stones in bulk from Italy, Greece, Spain, Turkey, Portugal, Iran and Brazil. Our retail centers are in Delhi, Kishangarh(Rajasthan) and Ahmedabad. Our marketing teams are located in Punjab (Chandigarh) and Uttar Pradesh (Meerut, Moradabad and Kanpur) Gujarat (Ahmedabad & Surat) and Maharashtra (Mumbai), West Bengal (Kolkata), Andhra Pradesh (Hyderabad), Karnataka (Bengaluru) and Tamil Nadu(Coimbatore). 

Why should customers buy from an expert vendor?

Buying from an expert vendor ensures fair pricing and quality along with confidence in the purchase and peace of mind. In addition, an experienced vendor can also advise builders, both retail and institutional, about usage and upkeep. For example, Stonex India has a team of 25 engineers (in Delhi) who support logistic coordination, installations during construction and how to ensure the marble and stone stays in premium condition longer. Consumers have a positive experience, end to end. 

With government’s focus on affordable housing, will the imported stone and marble market suffer over the next 

few years?

On the contrary, focus on affordable housing will give an impetus to Indian economy which in turn will bring more people into the bracket of the target group. HNIs and institutions constitute our core customer base and that will continue to expand in a growing India.

What will be the impact of GST on marble and stone prices?

Customers will be the winners and companies will also experience ease of doing business. We have been preparing ourselves for GST implementation for the past one year and we are excited since GST reduces the variation in tax structures across the country and makes India one homogeneous market. In fact, this is one of the reasons why we are planning to open sales point in 10 more cities across the country. 

Future growth plan and target?

Stonex India made Rs 250 crore in revenue last year. We plan to close next year with Rs 500 crore revenue and to close 2019 with 

Rs 700 crore revenue and to expand to 10 points of sale across the country. 

— As told to Geetu Vaid