By MAULIK SHAH

For years, plywood and laminate brands have focused heavily on metros and Tier-1 cities – markets that are structured, competitive and relatively easy to penetrate. Today, the real growth story of India lies elsewhere. Tier-2 and Tier-3 towns are witnessing a construction boom driven by rapid urbanisation, improved purchasing power and rising aspirations for modern interiors.

Manufacturers looking to expand deeper into these markets quickly realise that product quality alone is not enough. Carpenters, contractors and local builders play a major role in buying decisions, and they value trust, recognition and regular engagement more than one-time promotions.

This is where loyalty programmes, especially digital ones, emerge as a transformative force for the plywood and laminate sector.

Unlike metros, Tier-2/3 markets operate on personal relationships. Carpenters and contractors often guide end-users on which plywood or laminate to prefer. Their recommendations stem not just from product familiarity, but from the value a brand provides for them. A well-structured loyalty programme helps manufacturers:

•        Build long-term trust with influencers who shape buying decisions

•        Ensure repeat sales through ongoing rewards

•        Create a unified system for tracking purchases across semi-urban and rural geographies

•        Promote genuine materials by enabling QR-based authentication

Building credibility

For brands trying to penetrate smaller cities, loyalty programmes create a bridge of credibility that is both scalable and sustainable. The plywood and laminates industry is unorganised in many Tier-2/3 pockets.

Counterfeit materials, limited product awareness, inconsistent dealer engagement, and lack of transparency directly impact growth. A digital loyalty platform helps solve these industry-wide challenges in multiple ways:

Carpenters and contractors trust brands that recognise their contribution. Loyalty programmes allow manufacturers to offer exclusive incentives, dream rewards and personalised engagement – creating a sense of belonging and reliability.

Tier-2/3 customers often rely on the guidance of service professionals. When carpenters and contractors feel valued, they consistently recommend the same brand, ensuring stable repeat sales.

Digital loyalty platforms provide a seamless way for partners to scan products, earn points, get updates, explore rewards and track redemptions – elevating the entire engagement experience.

QR-based validations empower partners and end-customers to confirm the authenticity of plywood and laminate sheets, reducing fake product circulation in smaller markets.

Wallet system

LoyaltyXpert’s platform is designed specifically to address the realities of the plywood and laminate industry, where long-term relationships matter, and where channel partners expect convenience, transparency and meaningful recognition.

Printed QR codes on plywood sheets or laminate packs allow carpenters, contractors, retailers, and even end-users, to scan and earn points instantly. This not only boosts engagement but also eliminates counterfeit risks and brings complete visibility across the channel.

Unique to LoyaltyXpert, the dual wallet feature enhances transparency in Tier-2/3 channels where multiple intermediaries are involved.

•        Primary wallet: Points directly earned and redeemed by channel partners.

•        Secondary wallet: Using a percentage of those points to transfer rewards downstream. For example, from dealer to retailer, or retailer to carpenter.

Building motivation

Partners from different markets and regions have different performance levels. A tier-based system encourages healthy competition by offering differentiated rewards, recognition levels, and benefits for those who consistently engage.

Contests, quizzes, and leaderboard challenges tap into the aspirational nature of Tier-2/3 markets. These interactive engagements help train partners on product knowledge, drive frequent app usage, and strengthen emotional connection with the brand.

Manufacturers can access real-time data on participation, product movement, regional engagement, and buying behaviour. This level of intelligence is invaluable when devising expansion strategies for smaller towns.

Local carpenters often influence other carpenters. The referral feature allows the ecosystem to grow organically. Integrations with CRMs, ERPs, or marketing systems ensure a smooth operational workflow for manufacturers expanding into new regions.

End-user impact

Plywood buyers in Tier-2/3 markets keep authenticity and durability at the top of their checklist. Loyalty programmes enable manufacturers to showcase product genuineness, offer seasonal promotions, provide value-added rewards, and build an emotional connection with customers.

This results in stronger brand loyalty and improved word-of-mouth marketing that is still the most powerful tool in these markets.

As India’s interiors and infrastructure sectors grow rapidly beyond metropolitan borders, plywood and laminate brands that embrace loyalty-led engagement will stand out. Tier-2/3 markets are not just emerging, they are becoming the backbone of demand.

Loyalty programmes give brands the ability to build trust, foster relationships, and create loyal brand advocates who influence high-intent purchases. This shift toward structured engagement, recognition and digital empowerment is where the future of the industry lies.

– The writer is co-founder and CEO of LoyaltyXpert.

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