Shikha Pahwa, the visionary Founder & CEO of House This, is revolutionising the e-commerce industry with her expertise in the home and lifestyle category. Her entrepreneurial journey began at Hindustan Unilever Limited, where she gained invaluable insights before venturing out on her own.
Driven by her vision, Shikha founded House This in 2011, a groundbreaking home décor brand that swiftly captivated the market. With a strong online presence — 30 marketplaces, 50 offline stores, and strategic corporate partnerships, House This reflects the power of smart direct-to-consumer (D2C) entrepreneurship.
Inspired by Anita Roddick’s legacy, Shikha prioritises unique selling propositions, innovative marketing, and societal impact on her consumer brand. Beyond her remarkable business achievements, Shikha passionately advocates for diversity and women in entrepreneurship, garnering recognition from esteemed forums such as ASSOCHAM, Businessworld, and Let’s Venture. Her exceptional contributions earned her the prestigious V-WA 50 Award in the ‘Leaders in Fashion and Lifestyle’ category.
Recently, Shikha took centre stage at Mahila Money Talks, sharing well-guarded industry secrets and tested strategies, talking about the birth of her venture and the seamless blend of her D2C brand in the online-offline world.
The Entrepreneurial Journey, From Gut Decisions to Passion-Driven Success…
With an instinctive flair for spotting opportunities, the driving force behind Shikha’s maiden manufacturing venture was unmet demands within the supply chain in the growing retail landscape. Having steered her manufacturing business to resounding success, Shikha’s astute business acumen identified a crucial pain point in the mid-range home category, igniting the inception of House This.
Through in-depth research, each contemporary creation of House This became a reflection of India’s diverse cultural fabric, resonating with customers. Shikha emphasises the significance of understanding both the market and customers in decision-making. In her words, “I think it’s a combination of both, personally, the market and the customer. This is how I have made decisions so far.”
Strategies and Lessons for Venture Transitions…
Offering a glimpse into the financial strategies that propelled her entrepreneurial journey, Shikha advises on bootstrapping and exploring alternative financing avenues. She also touches upon harnessing personal capital, and seeking support from loved ones.
With a three-stage financing approach — initial investment, working capital, and growth capital — Shikha guides entrepreneurs to allocate personal funds and seek external funding for rapid expansion.
During venture transitions, attention to financial details is paramount. Shikha emphasises closing one venture before embarking on the next, emphasising on financial planning and legal compliance.
As Shikha puts it, “It’s important to close all financial and legal aspects. Then you should move on, close all the receivables, audits, and legal formalities.”
Mastering Cash Flow and Recovery, Essential Financial Strategies…
Shikha’s focus on financial monitoring reveals the significance of monthly account reconciliation, vigilant number scrutiny, and a robust management information system (MIS) to track gross margins and inventory. Managing cash flow is important — particularly for product-based businesses with inventory complexities.
Having faced the challenges of cash flow recovery, Shikha acknowledges the realities of delayed payments. Her advice? Deploy dedicated resources to relentless recovery efforts, investing time in monitoring and collecting payments. “Invest the time to have someone, even a junior person, looking at recoveries all the time,” she says.
“Offline is a higher investment space, the credit period can be longer, and there is a gestation period involved.” — Shikha Pahwa
Navigating Offline and Online Channels…
Shikha offers invaluable insights into the ever-evolving landscape of offline and online channels. Reflecting on her journey, she shares, “I started when there was no digital. I have witnessed the business in its offline format and have seen the rise of the digital era.” She underscores the impact of the digital revolution, recognizing it as a boon for House This.
“As a startup entrepreneur, my wholehearted suggestion would be to start with one channel. Online can be a good bet. It provides an excellent avenue to be impeccable with your customer approach and allows for precise audience targeting.” — Shikha Pahwa
Offline channels can be resource-intensive. “Offline is a higher investment space, the credit period can be longer, and there is a gestation period involved.” However, recognizing the importance of offline presence in certain categories is crucial. Shikha concludes by emphasising the significance of brand strategy, and its customisation to resonate with the target audience and specific business category.
The Art of Consistency…
Shikha’s journey building House This highlights the art of adapting to change without compromising on brand essence. “Have a clear thought process about who you are,” she advises. Maintaining a cohesive brand identity is crucial, even while making adaptations in packaging and product placement.
Drawing on House This’s experience, Shikha shares the challenges faced when introducing eco-friendly packaging in offline stores. Despite resistance, the team remained true to their brand ethos by transforming the packaging into a reusable format.
Consistency amidst adaptation is further key in delivering on the brand promise. Shikha advises understanding customer needs and communicating visually and tactically in alignment with brand identity.
“I didn’t face any challenges when shifting from offline to online. In fact, offline was not a product-market fit for us.” — Shikha Pahwa
Mastering Customer Acquisition…
Shikha’s insights into the customer acquisition approach include both short-term tactics and long-term brand building across diverse channels.
Offline, House This capitalises on personalised experiences by deploying promoters and salespeople to interact directly with customers. Shikha asserts, “We focus on building relationships through promoters or salespeople on the floor,” ensuring a human touch in their approach. In addition, events serve as a cost-effective avenue to acquire customers and gather valuable feedback for product refinement.
Shikha highlights the power of digital marketing and performance-driven strategies for online channels. Through online ads, plugins, and performance marketing, House This drives sales and customer acquisition. She emphasises the need for brand building through influencer partnerships and PR initiatives to foster loyalty and long-term success.
Shikha also cautions against relying solely on marketplaces, stressing the need to invest in brand recognition and equity. “Allocate resources towards brand building each year,” ensuring sustained visibility and control.
Building Brand Momentum Through Collaborations…
Brand collaborations that align with your brand’s values enable seamless transition from offline to online channels. Speaking about the importance of strategic partnerships, Shikha says, “Brand collaborations have played a crucial role in our business. They allow us to leverage the strengths and unique offerings of other brands, amplifying our reach and expanding our customer base.”
Addressing the shift from offline to online, Shikha candidly shares, “I didn’t face any challenges when shifting from offline to online. In fact, offline was not a product-market fit for us.”
“We have an overarching pricing strategy that remains consistent across platforms. We offer a standard discount of 10% on select products, ensuring that our pricing remains aligned and transparent for customers regardless of the platform they choose.” — Shikha Pahwa
The Price Balancing Act…
Brands often find it difficult to retain their competitive edge when there are frequent marketplace discounts. Shikha says, “It can be quite challenging to maintain our brand integrity and differentiate ourselves in a marketplace where discounts are constantly being promoted.”
To address this, House This implements a comprehensive umbrella promotion strategy. Shikha elaborates, “We have an overarching pricing strategy that remains consistent across platforms. We offer a standard discount of 10% on select products, ensuring that our pricing remains aligned and transparent for customers regardless of the platform they choose.” However, she acknowledges the occasional need to participate in platform-specific sales or events to stay competitive in the market.
Sourcing Evolution And Driving Profitability in Retail…
Initially, Shikha faced challenges finding vendors willing to produce smaller quantities. However, over time, she witnessed positive changes in the supplier network. She notes, “Now, there is a better understanding of the industry, and vendors are more open to collaborative discussions.” This change has improved the quality and cost of products, leading to increased gross margins for House This.
Sourcing plays a critical role in the bottom line, as Shikha says, “Being able to source effectively can have a substantial impact on a company’s gross margins.” While there have been advancements, she believes there is always room for improvement.
Expanding Horizons, House This’ Vision and Future Plans
“I’ve always aimed to create a brand that represents India and resonates with the world. We have so many incredible products here that often go unnoticed. So, my first focus is on realising this vision and taking all the beautiful stories, culture, and communities of India to a global stage.”
House This will be doubling down on its EPC (Everyday Products for the Contemporary) business, catering to the needs and aspirations of the Indian audience. Shikha shares, “We want to consolidate and strengthen our position in the domestic market.”
While international expansion is also a part of the roadmap. She says, “We do have plans to establish a presence globally, but it’s a journey that requires time and strategic decision-making.”
Shikha is optimistic about an increase in demand. She adds, “There is an incredible amount of interest and demand, particularly in the non-home segment.”
With a strategic focus on the EPC business and upcoming international initiatives, House This is positioned to make a significant impact in the global marketplace.
If you are a woman entrepreneur who wants to take your business to new heights and is in need of working capital and entrepreneurship resources, come speak to us on Mahila Money. For more such #JiyoApneDumPe live conversations, download the Mahila Money App on Play Store or visit us on www.mahila.money
If you are a woman entrepreneur who wants to take your business to new heights and is in need of working capital and entrepreneurship resources, come speak to us on Mahila Money. For more such #JiyoApneDumPe live conversations, download the Mahila Money App on Play Store or visit us on www.mahila.money
