Chandelier Maker Tisva Forays Into Eastern Region With Flagship Store In Kolkata

Tisva, the maker of designer chandeliers and ceiling lights, is looking to explore the eastern region after creating a niche in the rest of India. The brand unveiled its maiden flagship store in Kolkata as wealthy shoppers indulge in luxury goods, defying inflation and potential economic slowdown.

Spread across 1,740 square feet, the new Tisva studio in South Kolkata's upscale market will house all things lighting—from basic to high-end, opulent to minimalistic—as well as luxury and architectural solutions. The brand also aims to tap the potential upcountry market, comprising the periphery of Kolkata and the entire eastern market, for designer lighting.

"Lighting has become an integral part of home decor and is no more just restricted to bulbs and battens," Vikas Gandhi, president and business head (lighting) at Tisva told BQ Prime. In the last five years, consumer spending on designer lights in one visit has grown by seven times, he said.

Today, if people are spending a minimum of Rs 1 crore on the interior design of their dream homes, around 5–6% of the budget is spent on lighting, according to Gandhi. "Earlier, the budget for lighting used to be less than Rs 1 lakh ... and that's the average number. In the case of ultra-luxury homes, people are spending Rs 10 lakh on just one chandelier."

Kolkata was a natural choice for expansion, as the company had an eye on the untapped eastern market. "The city is a gateway to the entire eastern part of the country, and being one of the metros, we see immense growth potential here, given that we do see consumers are paying on upscaling."

The price for a Tisva chandelier ranges from Rs 25,000 to Rs 15 lakh. "We see maximum sales in the Rs 75,000–Rs 1 lakh range," he said.

The brand was also waiting for the right time to launch its store, said Gandhi. The timing could not be better since India is just starting its annual festive season—the period when the economy typically witnesses a surge in shopping. This year’s Diwali, the festival of lights that is falling on Nov. 10 and is the equivalent of Christmas in the West, will be India’s second season of celebration without restrictions since the outbreak of the Covid pandemic.

Gandhi expects sales of its decorative lights to peak in October and December.

The new store will also give the company a first-mover advantage in the designer home decorative and architectural space to stay ahead of the competition, he said. "There are no organised players in the city yet, so we expect to gain a foothold much faster than we have in other cities."

The latest store addition is part of Tisva’s ongoing expansion plans.

There are currently 15 exclusive Tisva Studios across the country in Ahmedabad, Bengaluru, Chandigarh, Delhi-NCR, Dehradun, Hyderabad, Indore, Jalandhar, Ludhiana, Mumbai, Pune, and Vadodara. Over the next three years, the company plans to double the store count, Gandhi said.

Tisva, part of the diversified Usha International Ltd. with annual sales over Rs 3,000 crore, has been going slowly with its expansion plan. "We're not in a hurry as we have chosen a different expansion route by ensuring that our existing stores are profitable before opening a new one," said Gandhi.

Other than its exclusive stores, the company has opened a hundred shop-in-shop outlets and roped in 400 direct dealers over the last nine years.

"Because we are a premium brand, we have to be very careful in terms of segmenting our market and enter into the right cities," said Gandhi.

"With our current strategy, we have seen same-store sales growth at a CAGR of 50% in the last six years, which is very healthy, and we want to maintain this," he said.

Gandhi said the company will focus on cities beyond metros in the next phase of expansion.

"Jaipur, Lucknow, Amritsar, Surat, and Nagpur are some of the cities on our radar. But we are not in a hurry to just opening new stores, but (want to) ensure a profitable expansion." Buoyed by robust demand, it plans to double on the existing cities by adding one more store each in Bengaluru and Hyderabad.

While the tier-1 markets remain critical for high-end retail, the perception of luxury goods is changing in the tier-2 and tier-3 markets. And that's not only because wealth is increasing but also due to a shift in social values. Fashion and cosmetics brands were among the first to capitalise on this trend.

In many instances, a tier-1 flagship store creates more demand from tier-2 or 3 consumers, according to Gandhi. "Our West Delhi store sees a lot of business coming from places like Rohtak and Sonipat. Similarly, a lot of consumers from Mysuru visit our store in Bengaluru," he said. "We were getting loads of enquiries from places like Saharanpur and Dehradun in our Chandigarh store, which acted as a feeder for all these consumers. Just as it reached a certain level, we decided to open a store in Dehradun itself."

"Easily, every three years we can double our business, which gives a CAGR of 33%, provided a proper ecosystem is in place," Gandhi said on the potential of markets beyond the metro cities.

Even as the growth of its parent has not been "enlightening" and has taken a hit, the Tisva brand has fared much better. "In utility bulbs, for instance, the pricing is coming down every year, so to match the revenue figures, we need to sell a greater number of units. And that's a challenge," he said.

The country's lighting market is estimated at Rs 30,000 crore, and the market is expected to grow annually by 8.45% during 2023–2028, according to market research firm Statista.

LED lighting accounts for the bulk of sales, but Statista expects that the Rs 13,000-crore chandeliers and ceiling lights segment will outpace categories such as bulbs, fittings, and lamps by 2028.

The business of lighting involves a complex decision-making process, said Gandhi. "From talking about lights to deciding on the final product, the gestation period starts right away, from six months to a minimum of 18 months."

"It's not a box-in-box-out kind of trade, but more of consulting," said Gandhi. "It is more about working with the end client and architects and interior designers to help them create ambience, which they really want."

It is also harder to succeed as an independent brand. Ideally, the interior designers could lure new shoppers—and perhaps a deep-pocketed buyer too.

Launched in 2014, Tisva works with 5,000 architects and interior designers. Celebrity interior designer Gauri Khan is the face of Tisva, and she has also curated an exclusive range of designer lights. The signature collection includes four unique chandeliers—the Ringlet, Fotios, Elinore, and Calante.

"It's a very important part of our strategy to work with architects and interior designers. Till date, we have provided full lighting solutions to 15,000 homes with the help of these associations."