As IKEA sets up its stores in India, the products of the world’s largest furniture retail store are awaited.
Modernist design in furniture being available in affordable rates is not yet a reality in India on a large scale. With plans to open twenty-five stores across the country, IKEA looks at expanding its presence in India from sourcing for its global markets to supplying to the country. IKEA’s first store in the country is projected to open by the end of this year or early next year in the southern Indian city of Hyderabad. Two other stores will also be set-up, one in Mumbai in western India and the other in Bengaluru in southern India.
IKEA, the multinational furniture retail chain, present in over 48 countries aims to provide products at an affordable rate with designs that are meant to suit a variety of tastes. In India, the first store, whose setup is underway, is located in Hyderabad, and is set to spread across 400,000 square feet. IKEA has estimated that the store is set to attract 5-6 million customers a year. With over seven thousand furniture and home furnishing products, this store will also house a large restaurant that will serve Indian and Swedish cuisine, as well as a play space for children.
Looking at India as a crucial and important market, IKEA looks to open twenty-five such centres in the country by 2025. As of now, after Hyderabad, the company announced its second store in Mumbai. It recently announced its acquisition of land in Bengaluru, where it is set to build its third store in India. After store operations are launched in India, the company is looking at adopting a multi-channel approach by launching products online. Patrik Antoni, deputy country manager for IKEA India was noted as saying, “I don’t think any other country in IKEA’s history has so much commitment from global IKEA that we have in India.”
Long history with India
IKEA has had its presence in India for almost thirty years now, as the country has been contributing to the company in its sourcing operations. An estimated of forty eight suppliers for IKEA are present in India, that employs directly around 45,000 people and 400,000 people in the extended supply chain.
As each IKEA store employs close to four to seven hundred employees directly and up-to two thousand indirectly, thus opening up of the stores will only strengthen its presence in the country.
— Naina sharma (@NainaSharma) June 8, 2017