‘Serve your customer well’

In a conversation with DT Next, the ace entrepreneur talks about his journey to the top, the highs and lows of his job, embracing the ever changing market and more.

Pharmaceuticals, textiles, furniture – that has been the trajectory of Swaminathan’s career as an entrepreneur. His outlook on business has been varied and audacious. He started out as a medical representative for a Fortune 500 pharma company, worked with Tata for 20 years, before moving to Indonesia, where he ventured into the textile industry, and in 15 years’ time, became the MD of a textile company. He was at the top of his game and did not want to move at all, but his wife wanted to return to Chennai, her hometown. He sent her, with plenty of furniture in tow, this being a hallmark of Indonesia’s. However, a friend bought the whole consignment off her. This was how it occurred to them that there was a void that they could fill.

“I started sending furniture from Indonesia and my wife set up a business from home,” says Swaminathan, who then handed over the textile business to his nephew and shifted to furniture. The transition wasn’t a walk in the park, for he didn’t know how the local market worked. He first started sourcing furniture before setting up his own brand, Woodpecker, in 2004. “We didn’t establish ourselves until 2009, opening our second showroom in 2010,” he says. Swaminathan’s USP has been to offer a variety of choices for the average consumer at genuine prices and to provide professional after-sales service. 

Woodpecker has survived the competition, namely e-commerce portals like Urban Ladder and Pepperfry. “I believe that furniture, being a tangible product, people like to check it out, sit on it. It’s what depicts your lifestyle and sensibilities. Besides, transporting furniture is a logistical nightmare. So, it doesn’t make sense to sell it online, but we are trying to keep up with the times,” says Swaminathan, whose brand too recently ventured into e-commerce. 

His success notwithstanding, the furniture business has its own share of struggles. “Almost 90 per cent of the business is unorganised – there is a large section that sells without proper bills and forgoes the 14.5 per cent VAT. All the noise we’re making, it’s only 10 per cent – we are a small percentage, but growing. Also, there aren’t too many qualified people out there: that’s a huge concern. Real estate is the biggest challenge.”

What Swaminathan also finds is that there has been a shift in the psyche of the customer. Earlier, people were emotionally attached to furniture: They were involved in everything, from buying the wood to seeing it take shape before their very eyes. “This has changed. Now all people look for is something that serves their need. Costs have come down drastically and there is resale value. People are not very particular about wood either these days — and that is a good thing because we can’t go on exploiting the environment. There has to be an alternative – like particle boards and others made from waste. We need green furniture.” So in a changing world, what does he want to tell aspiring entrepreneurs? “Don’t work for monetary benefit alone. In any industry, serving your customer has to be top priority, and the rest will follow. Also, it’s important to step out of your comfort zone and innovate constantly,” he says.