Updated: Apr 25
Swedish furniture giant IKEA has opened its first store in India in the southern city of Hyderabad. With a growing middle class, India could be a big opportunity for the company, but it is also a market with many quirks. Ikea's giant blue store sits on a 13 acre campus. The store will be 400,000 square foot of built up area on 13 acres by the side of a busy road, in HITEC city. In India, IKEA currently has 48 suppliers with about 45,000 direct employees and about 400,000 people in the extended supply chain. The investment in store is more than Rs 800 crore, including land, construction and capital goods, among others.
IKEA has been sourcing material for its global operations from the country for around 30 years, but it was prevented from opening its iconic blue-and-yellow retail stores because of Indian restrictions on foreign investment. Inaugurated by the CEO on August 9th 2018, the Swedish company planned to recruit about 800 people for the store of which 50 per cent are women, including 120 for the 1,000 seater restaurant along with the outlet. The store has a range of 7,500 products. Whether you just moved into a new home or looking to revamp your current one, IKEA inspires you with affordable home furniture solution and creates a home that is perfect for you.
After 12 long years of planning and market research IKEA has entered the Indian market. The IKEA teams had visited around 1,000 homes in India across different income levels to understand the complex fabric of the Indian society. IKEA is offering items that have been tailored to match the Indian way of life. IKEA is selling their lightweight furniture and household items at a cheaper rate - some even cheaper than what they are selling in some overseas markets. Out of the 7,500 products, 1,000 are priced at Rs 200 or less. Not only that, 20% of their products will be locally sourced as well and will be in tandem with Indian choices. IKEA expects six million customers in a year. IKEA sees potential to set up large or small format stores in at least 49 Indian cities with a population of more than a million each over the years. IKEA has been sourcing material for its global operations from the country for around 30 years, but it was prevented from opening its iconic blue-and-yellow retail stores because of Indian restrictions on foreign investment.
Address: Survey no. 83/1, Plot No.25, 26, Part 29 Panmaqtha, Rangareddy Raidurg, Serilingampally, Hyderabad, Telangana 500032
After the Hyderabad store, the second store will open in Mumbai in 2022, followed by Bengaluru and Delhi NCR. The company has also opened a distribution point in Pune. Initially, the company had earmarked Rs 10,500 crore to open about 25 stores in the country by 2025. Shopping at IKEA is a bit different and exciting compared to your shopping at an everyday retail.