Häfele is one of the well-known brands for smart home solutions, kitchen appliances and interior solutions. Over the years, Häfele has evolved from being recognised primarily for precision door and furniture hardware into a brand enabling complete, integrated interior solutions including kitchen and home appliances, furniture and room lighting and home surfaces for varied interior applications. As design preferences and lifestyles continue to evolve, Häfele’s role has expanded from offering individual products to delivering connected systems that address functionality, efficiency, and overall user experience.
The brand has taken a step ahead in its journey with the launch of its largest and 9th design centre in the country. Located at M3M 65th Avenue, Golf Course Extension Road, the flagship design showroom in Gurugram spans more than 10,000 square feet and has been conceived as an immersive, experience-led destination for architects, interior designers, developers, and homeowners across the Delhi–NCR region.
Nilesh Dave, Executive Director, Häfele South Asia spoke about the brand’s expansion plans, its growing focus on Tier II and III cities, and holding the core of the premium segment close to its heart.
Retail and Geographic expansion
Dave explained that they want to represent Tier I, II and III cities, equally. Currently, the brand is mostly present in Tier I through its franchise network as well as showrooms. Tier II and III markets are part of the brand’s upcoming expansion phase.
Häfele India operates a franchise-led network comprising around 200 exclusive brand outlets, supported by company-owned design centres. The recently launched Gurugram facility is a flagship Design Centre and marks the brand’s ninth design showroom in India.
The brand also has kitchen showrooms. “Kitchen showrooms are another 90 to 100 showrooms for us, in the franchise concept,” Dave noted. Additionally, there are 10-11 appliances galleries, and 3-4 LECs (Licht Experience Centres).
The next phase of expansion in terms of franchise network is going to take the count up to 95 cities. Dave revealed, “We are also very closely monitoring if there is an opportunity - a housing development or economic development happening in any of the areas and that looks lucrative, or if there are people available to invest into our brand as a franchisee, then we are also looking forward to open in those areas.”
Apart from the franchise stores, the brand also runs 12 design centres in South Asian countries – which span across 6,000 - 11,000 sq ft. There are 9 centres in India, while the remaining 3 are overseas in Sri Lanka and Bangladesh.
The brand is also present in around 20,000 MBOs (multi-brand outlets) in India. The expansion or the reach is not primarily through franchising, but other formats as well to make it an omnichannel network. For the brand, the dealers of the multi-brand outlets, they help give it the scale or the reach in the market. “When we look at the exclusive brand outlets like franchisee, they showcase all the products that are there in our range, and it also provides an experience to the customer. Considering that, both go very well with each other in terms of our retail strategy,” pointed out Dave.
India is an important and fast-growing market for Häfele – it contributes around 10 per cent of Häfele’s overall global revenue and is currently the third-largest market after Germany and the U.S.
Häfele India’s revenue is around Rs 1,200 cr, and the company is aiming to grow this further. “Whenever we look at Tier II and III cities and towns, it is going to be a combination of MBOs and the franchise network,” he says.
The multi-brand outlets would trigger reach and recognition when it comes to carpenters and contractors. Franchise stores would be about the experience those can provide to its customers and a go-to-place where customers can go and actually touch and feel the product.
Innovating for a diverse India
Dave mentions that talking to the consumer is essential, “The inspiration for innovation always comes from your customer, what their challenges are and what they need in terms of the Indian context.”
If one looks at the way consumers use things – they use products very differently, especially in kitchens. Indian kitchens are wet kitchens, as compared to the dry kitchens abroad. “No doubt our core is bringing modern trends to the Indian market, but it should be usable or user-friendly for the Indian households and customers. You cannot just bring something from Germany and apply it here. You have to develop that product according to the needs of the Indian market. And this is how we have typically built our brand,” he adds.
Discussing about maintaining a competitive positioning in a crowded market whether it's for smart home appliances, kitchen solutions, interior solutions, Dave emphasises that their biggest advantage is that Häfele is a one-stop shop. “Except for furnishing, if you enter a Häfele showroom, you can buy anything and everything together - you don't have to go to multiple locations. Customers can spend an entire day at the brand’s store and they will know what they need for their house,” he tells.
Even though Häfele’s core customer comes from the premium segment, the brand also caters to a huge spectrum of consumers – from middle class to premium. The brand is committed to assist and be there for its customers since the launch of its first showroom in India in 2005, which was opened at Chittaranjan Park. “Right from then, we have been providing design services. Along with being a one-stop-shop, service is the key differentiator for us,” Dave says.
The brand takes pride in its product range – it is very instrumental in bringing new innovations into the market, whether it is in terms of design or functionality, so that it is ahead in the curve from the competition. “We are very bold in bringing modern trends which are user-friendly from the Indian customer's perspective,” he explains.
Talking futuristically about its new launches, Häfele will focus on the integration of smart home solutions. “I think that is going to be the thing which will lead in the future - how we bring together furniture and different gadgets in the house. When we talk about appliances, we have talked about lighting. In Europe, if you see, there are the electrically operated furniture systems. Hence, the trend is to showcase how all this can be connected together, plus the design. These are becoming more prevalent than just the functionality which we always looked at,” Dave outlines.
The Franchise story
Talking about helping its franchise partners to enhance operations, Dave tells that it is about skilling their staff.
Dave says, “We have a separate department altogether who trains all our franchise staff in handling customers. Periodically we also keep doing their trainings to handle the operations and the customers in the showroom and how they can suggest, help, and consult a customer to have their kitchens or their wardrobes or any other element in the house, even for that matter lighting.”
Häfele provides complete end-to-end solutions to customers, except furniture. But now the brand has started with a new initiative, which is making aluminum doors, customised for each consumer.
The brand runs its stores on a FOFO (Franchisee-Owned, Franchisee-Operated) model. The franchisees are not treated simply as franchisees – Häfele considers them as extended family. Their bond with the franchisees begins much before the store comes up - that's where the whole help and collaboration work comes in. It's a complete ecosystem to help them. “We have a full-blown department which only takes care of their needs from operations, training etc.,” Dave reiterates.
Long term vision & Growth Roadmap
“Though we have a broad spectrum of products which can cater to a lot of customers, but we are also seen as an aspirational brand. It's a cycle for a customer with us. First they would come in, they would buy the product which they require at that moment in time, and then they will also aspire to come to the next level when it is premium,” he wraps up.
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