In the space of home interiors and design, a quiet revolution has been made, LIVSPACE. Livspace has not only revolutionized the interior design and home renovation industry but also crafted a business model that generates revenue in innovative ways. In this in-depth exploration, we will explore about Livspace’s business model and how does it make money?
Livspace Company Overview
It is an online platform that connects homeowners with a network of talented interior designers, skilled contractors, and curated home décor and furnishing products. It was conceived with a visionary purpose – to democratize good design and make it accessible to all.
| Name of the Company | Livspace |
| Founders | Anuj Srivastava (Co-founder & CEO) & Ramakant Sharma (Co-founder & COO) |
| Founded in | 2014 |
| Headquartered in | Bengaluru, Karnataka |
| Sector served in | E-commerce |
| Co-founded by | Shagufta Anurag |
| Areas served in | India, Singapore, and Saudi Arabia |
| Valuation (2022) | $957 million |
| Funding (2022) | $184 million |
| Revenue (2022) | $75.4 million |
It quickly gained recognition in the interior design and home improvement due to its innovative approach to connecting homeowners with interior designers, contractors, and a wide range of home décor products. Livspace achieved the status of Unicorn company by raising $180 million in February 2022.
Livspace Business Model
Livspace works on a simple business model that provides a platform that pairs homeowners directly to skilled designers and vendors. In February 2022, Livspace announced its arrival into the B2B (Business-to-Business) sector with the launch of “Livspace for Business.” Livspace earns revenue through charging a commission each time on the sale of their products.
Here are some key points of Livspace business model
The Foundation of Personalized Design
At the core of Livspace’s business model lies an unwavering commitment to personalization. It all begins with a homeowner’s dream. When a client embarks on their design journey with Livspace, they are introduced to a whole world of possibilities. Expert interior designers are assigned to meticulously understand the client’s preferences, lifestyle, and vision.
Sustainability Focus
Livspace places a strong emphasis on sustainability, promoting eco-friendly design practices and the use of sustainable materials. This commitment to environmental stewardship resonates with clients who prioritize eco-conscious design.
Subscription Service
Livspace understands that each homeowner is unique, with distinctive needs and preferences. To cater to a diverse client base, the company offers subscription-based services, such as its “Essential” and “Signature” packages. Subscribers gain access to exclusive design services, product discounts, and priority project scheduling.
Virtual Reality (VR) Technology
Livspace utilizes cutting-edge VR technology to allow customers to visualize their prospective designs in a virtual environment. This immersive experience helps customers make informed decisions and reduces the risk of design misalignments.
Note: We do have a detailed write-up on the design of Cloud Kitchen Business Model. Do visit it for more information!
How does Livspace earn money?
Livspace charges a commission on every transaction, sale of their product, that helps them to generate revenue for the company. Also works on a service based model.
Here are some of the key ways through which Livspace earns revenue-
Design Consultation Fees – When homeowners embark on their journey with Livspace, they are connected with experienced interior designers. Livspace charges design consultation fees for these services, which is the first revenue stream. This fee allows homeowners to tap into the expertise of professional designers who can turn their vision into reality.
Premium and Customized Services – For homeowners seeking a more personalized and luxurious touch, Livspace offers premium services. This includes tailored design solutions and access to exclusive décor collections. These premium services come at a higher price point, contributing to Livspace revenue.
Vendor Collaborations – Livspace collaborates with a network of home décor vendors and professionals. These collaborations often involve mutual marketing efforts and partnerships. Livspace can earn additional income through these collaborations, whether it’s through referral fees or promotional arrangements.
Brand Alliances and Advertising – Livspace’s strong brand presence in the interior design industry can lead to brand alliances and advertising opportunities. Partnerships with other companies in the home décor and renovation space can generate additional revenue.
Product Sales – Livspace offers an extensive range of curated home décor products, from furniture to accessories. The platform earns a commission on each product sold through its website. This commission-based approach ensures that Livspace benefits from the sales generated on its platform.
Marketing Strategies of Livspace
Livspace’s marketing strategies are as innovative as their design solutions. Let’s dive into the artistry of Livspace’s marketing and discover how it crafts its success story
Some of its marketing strategies are
Digital Dominance – From social media platforms to search engines, Livspace has a strong digital presence. They leverage SEO techniques to ensure their website appears prominently when people search for interior design solutions.
User-Generated Content – They encourage users to share their experiences and design transformations on social media using branded hashtags. This user-generated content serves as authentic endorsements and social proof, enticing others to explore Livspace’s services.
Advertisements – Livspace has certainly onboarded many celebrities for their marketing campaign. Recently they reached out to famous personalities like Anushka Sharma and Virat Kohli for their brand endorsements. These commercials helped them to reach masses and to become more popular among the public.
Localized Marketing – Livspace understands that design preferences can vary regionally. They tailor their marketing strategies to cater to local tastes and trends. Their localized approach resonates with customers and fosters a sense of personalization.
Conclusion
Livspace’s unique business model is a well-crafted combination of design expertise, product sales, project execution, technology solutions and more to it. By offering end-to-end interior design and renovation services, Livspace caters to the diverse needs of homeowners while generating multiple revenue streams. This multifaceted approach has not only helped Livspace become a leader in the industry but has also revolutionized the way people approach home improvement projects.
