Along with its huge standard shops, Swedish furniture company IKEA plans to create modest city branches in India, complemented by an internet channel. In response to shifting consumer behavior, the company will adjust its strategy, a senior company executive was reported by the news agency PTI as saying.
IKEA has thus far opened three mega-format locations in Hyderabad, Bengaluru, Mumbai, and two city centres in Mumbai.
IKEA CEO Susanne Pulverer said that the Covid-19 outbreak had temporarily hindered the firm’s expansion plans in the nation, but she added that the company is also picking up lessons from the first market it has established.
According to her, the Indian retail market favours smaller forms since businesses need to be accessible to their customers.
She added that although IKEA is committed to the Indian market over the long term, the furniture retailer is still in the investment phase of its approved FDI and no additional investments have been lined up. Additionally, there will be an Omni channel in addition to the smaller formats where people can come, plan, and receive service for home decor.
“We believe that having multiple stores and an Omni channel in India is the way of the future. I’m not quite ready to share the combination, the number, or the year just yet. These strategies are currently being developed. We want to interact both offline and online “as reported by PTI, she stated.
Speaking of her internet sales, she stated that they currently account for 30% of her total sales, up from 20% before the Covid-19 outbreak and remaining high.
IKEA is currently providing its consumers in Bengaluru, Hyderabad, Mumbai, Pune, Ahmedabad, Surat, and Vadodara with products online through the company’s website or mobile application.
IKEA operator will make over 7,000 crores in investments in India
Two massive shopping centres will be constructed in the Delhi-NCR area with an investment of €900 million (about 7,266 crores) by Ingka Centres, a subsidiary of Sweden’s Ingka Group, which also operates Ikea retail outlets.
Additionally, the business started construction on the €400 million ($3,500 crore) Ingka Centre in Gurugram, which is scheduled to be finished by the second half of 2025. Then a similar centre will open in Noida.
According to the firm, the nine-story, 1.7 million square foot Gurugram Centre will have 320,000 square feet of commercial office space in addition to additional retail locations for national and international companies, edutainment activities, a food park, and an Ikea store. More than 9,000 home furnishings will be available at the Ikea shop, which will be 250,000 square feet in size. The store in Gurugram is expected to receive 20 million visitors annually, according to the firm.
The Noida centre’s development will take some time and with goods from more than 3,000 brands, Ingka Centres manages 45 shopping malls in 15 nations to meet the demands of 370 million people annually.
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