Boffi enters India, to form separate subsidiary for other Asian markets

Boffi SpA, the 80-year-old Italian brand specializing in luxury kitchens, bathrooms and wardrobe items, is likely to form a subsidiary to manage businesses in Asian markets more independently.

The Asian subsidiary is expected to be formed by end of 2013, said Roberto Gavazzi, chief executive officer of Boffi.

“The centre of activity for Boffi is shifting towards Asia. We are definitely planning to expand in key Asian markets, including China, Hong Kong, Seoul, Singapore, Sydney,” he said.

Early this month, Boffi opened its first shop in Delhi, in partnership with the Bhartiya Group, which has ventures in fashion and real estate. Boffi has opened a 4,000 sq. ft single-brand store in Mehrauli, New Delhi.

“We have plans to open more shops in India, especially in cities like Mumbai and Bangalore We may look for a different partner for the Mumbai market,” added Gavazzi.

Boffi is known for meticulous processes that ensure the durability of their products. However, it may explore the Bangalore market with Bhartiya Group as the Indian partner already has a good presence in the southern market.

“In our stores in London, Paris and Geneva, where many Indians have second homes, we have sold many products to them. Of course, the challenge is to be able to do it right, partner with the right people, to understand and serve this market well. The Boffi store in New Delhi is pretty much the same as you’d find in London or Paris, in the type of presentation and decoration,” said Gavazzi.

Boffi, which operates through partnerships with local firms in the Asian markets, is planning to open company-owned shops in China. “Finding good partner in China is a tough task. We have tried with a few, but none of them was satisfactory. There’s hige scope in China. We may now open our own shops in China,” Gavazzi added.

Over the next 3-5 years, Boffi hopes to get atleast 2-3% of its revenue from India. Currently Asian markets accounts for about 15% of Boffi’s 65 million euro revenue globally. Typically, Boffi sells 1,300 kitchen in a year. “About 15 kitchen an outlet is good enough for us. We are not in the volume game,” he added.