IKEA, the largest furniture retailer in the world that designs and sells furniture, home accessories and kitchen appliances has opened its first India store in Hyderabad, the capital city of Telangana state on August 09, 2018. Based in Sweden, the retailer company planned for this store 12 years back and finally opened six years after the first announcement. It embarks the first of 25 stores it plans to open in India by 2025.
The store spread across 400,000 square foot area will provide almost 7,500 products to the customer, and around 1,000 products among those would be sold at a price less than INR 200. The current expectation of IKEA is six million customers per year. The earlier fixed date of July 19 was postponed to August 09 to improve the quality standards for its customers and employees.
The teams of the company have visited almost 1000 Indian families with different lifestyles and incomes to understand their requirements, thereby, to design and make them available in the store of 7,500 furnishing products. IKEA also provided the restaurant services in the store, which is its largest with the seating capacity for 1000 people. Almost half of its food menu includes vegetarian items, and chicken replaces the typical beef and pork sections due to the cultural differences in India.
IKEA has already brought lands in Bengaluru, Mumbai and Gurgaon. Its next store will be opened in Mumbai in 2019, followed by Bangalore and Gurgaon. The company is also planning to open its stores in Kolkata, Chennai, Pune and Ahmedabad. It is also planning to start its e-commerce business from Mumbai from 2019 by offering online sales to cities that are suitable for delivery, assembling and fulfilment.
The furniture business in India is largely non-branded, and some of the famous companies in the furniture market of the country that can face tough competition with the advent of IKEA are Pepperfry, Urban Ladder, Godrej Interio, Future Group’s HomeTown and Durian Furnitures.