The Swedish multinational company Ikea is all set to provide the Indian customer base with furniture, DIY kits, kitchen appliances and home accessories.
Ikea is launching its first store in Hyderabad and plans to expand to 25 stores in India by the year 2025 across hub cities like Gurugram, Chennai, Bengaluru, Mumbai, etc. The Hyderabad branch is spread across an area of 13 acres and has a built up area of 4 lakh sq. ft.
Ikea has been researching the Indian market for more than a decade now and got the permission to set up store in the country in 2013. With their home visits as a part of research, Ikea has realised the potential of the Indian market, where most sales are expected to come through the living room and kitchen categories.
The newly launched Ikea store will cater 7,500 products out of which at least a 1,000 fall under the category of less than ₹ 200 each. The company expects to cater to a crowd of as many as six million visitors per year at this store. Apart from two-seater sofas costing less than ₹6,000 Ikea also has a food court, the largest across its 400-strong global chain, to attract Hyderabadi customers. A
1,000-seat restaurant will serve a mix of Nordic and local dishes, including biryani for ₹99 a plate.
A lot of people are seeing the setting up and expansion of Ikea in India as being guided by a spirit of competition with e-commerce giants like Amazon.
Concerned about the lack of DIY culture in India, Ikea has partnered with the local start-up UrbanClap to provide home delivery and assembly service to customers who are unfamiliar with the concept and might have a tough time. Ikea plans to hire over 15,000 employees in the coming years in addition to those that will be hired in association with UrbanClap for the mentioned services.