Written By Vishal Krishna
Years after it started researching India, Swedish retail giant Ikea launches large format store in India; CEO says community is ‘priority’.
Swedish furniture giant Ikea threw open its doors to India on Wednesday with the launch of its premier store in Hyderabad. Spread over 400,000 square feet, the Hyderabad store – flaunting the trademark blue and yellow colours – is the €30 billion global retailer’s first step towards winning a huge customer base in India.
Ikea has currently invested Rs 10,500 crore in India and has spent half that amount – one of the single biggest investments in the country since Future Group, Reliance Retail, and Aditya Birla More announced similar investments in 2006. The Hyderabad store involved an investment of Rs 1,000 crore.
Jespersen Brodin, CEO, Ikea Group, said, “Ikea has partnered with local manufacturers and has a long-term commitment to India. Our products will be inspiring, affordable, and convenient for Indian customers.”
The Hyderabad store offers 7,500 products, employs 950 workers directly and 1,500 people indirectly. The furniture company aims to open similar outlets in Mumbai, Bengaluru and Delhi in the next two years. By 2025, the plan is to debut 25 stores in India, some in a newer small format. Ikea has an ambitious target of reaching 40 cities and 200 million people, but did not specify timelines.
Peter Betzel, CEO, Ikea India, said: “We have laid a strong foundation here in India. For us, the community is a very important priority.”
Ikea, which reported revenues of $39 billion in 2017 globally, exports €350 million of product from India and has 50-plus suppliers.
The key highlights of Ikea in India:
Retail expansion in Maharashtra, Karnataka, NCR, Telangana.
Ahmedabad, Surat, Pune, Chennai, and Kolkata to have stores by 2025
Plot size of 8-11 acres for store to be set up.
1,000 workers per store
44 percent women workers in store
1,000 SKUs under Rs 200
Full-service offer – in-house and outsourced assemblers, pick-up and delivery, home planning consultants.
1,200 women artisans 380,000 cotton farmers work on cotton production for Ikea products
Skilling of 1 million women in retail and entrepreneurship through the Disha Foundation