IKEA to Launch First Store in Hyderabad
Swedish retail giant IKEA has announced its first store launch next month in Hyderabad, six years after announcing the plan. The store will house 7,500-8,000 products, with a price range catering to a range of consumers. According to Patrik Antoni, IKEA’s deputy country manager in India IKEA will try to create brand awareness and brand liking, in order to give customers a strong reason to visit the store.
“What’s new is that we are entering a market in totality, not just as a store, we are really going all (out) in India,” Quartz quoted Patrik Antoni.
IKEA also plans to stress on its online retail platform so that segments of population who do not usually shop in a multi-acre superstore too are included in their reach.
Also, apart from the gigantic presence in Hyderabad, IKEA is also planning smaller format stores in Mumbai, so that people living in far flung areas can visit a small store near them. After their success in Korea, IKEA plans to spread its operations throughout India, around 49 cities.
“We are not just testing the water, we are going into multiple things at one time. We are doing Hyderabad, Delhi, Mumbai, Bengaluru. We are exploring Pune, Chennai, Kolkata, Surat already. So it’s a play on India’s totality. We feel that a turnover in the online strategy will be an important part too. Because if we open a store in a big city such as Mumbai that’s home to 22 million people, how will a single store be accessible for someone who lives in south Mumbai?” he explained.
Keeping the Indian consumer in mind, IKEA has plans to offer a well-developed service and assembly option and has hired around 150 people for the same and partnered with UrbanClap, the urban lifestyle service provider.
“In India, people don’t have the experience yet to do it (do-it-yourself). So the service side is very important,” he said.
IKEA appointed Peter Betzel as its new Indian business CEO in March. Earlier, IKEA has assured that in the coming five years, 30 % of its products will be local.
IKEA’s entry into the Indian retail furniture market will add to the competition for local players like Pepperfry and Urbanladder. According to a Redseer Consulting report, the current home furniture industry is at USD 25 billion, USD 250 million being online.
With 403 stores around the world, IKEA has a presence in 51 countries. IKEA India, which is part of the IKEA Group, has been in India for 30 years. Sourcing products for approximately € 315 million every year, IKEA aims to double it in the next few years to meet their global and Indian needs.
According to their website, IKEA works with 48 suppliers in India, engaging 45,000 plus direct co-workers and approximately 400,000 coworkers in their supply chain. The retail giant has set up #IKEAHejHome at Forum Mall, Hyderabad to give customers a look into their products before the store opening in Hyderabad, where a range of home furniture, like sofas, wardrobes, and rugs, are on display.