Ikea has opened its first ever store in India on Thursday. The giant blue store that can easily be recognised all over the world, stands big and proud on a 13-acre plot in HITEC city, Hyderabad amid tech giants Google and Facebook. Indians have never seen a store of this magnitude ever before. The store with its classic warehouse style design hopes to become the go-to store for all things affordable.
With over a fifth of the products priced below a mere $3 (about Rs 210), the Swedish furnishings company is all set to woo the Indian market. However it has made a few changes to suit the ever-growing Indian middle class and plans to open an estimated 25 stores in India before 2025, having already bought land in cities like Mumbai and Bengaluru.
Shopping sprees get most of us hungry and Ikea knows that. The store is home to the largest restaurant in any Ikea store in the world with a seating capacity of 1,000. Its kitchen is all set to serve Indian dishes like dal makhni and biryani alongside the trademark Swedish meatballs, which will be made of chicken, in deference to Hindu sensitivities.
It’s an Ikea tradition all over the world to assemble furniture out of the plain flat-boxed packaging. The idea has always been that the DIY (Do It Yourself) model is simply cheaper. But, in a country where cheap labor is easily accessible, this particular idea falls flat. Like a true business, it has decided to adapt accordingly and sell already assembled pieces in its store.
The world’s largest furniture retailer was able to set up shop in India because of the Centre's move to allow 100% foreign direct investment by single brand retail. Nevertheless, the Group Global CEO Jasper Brodin said it was going to be hard for Ikea, which plans to set up large, or small format stores in 49 Indian cities over the years.
Ikea's proposed Rs 10,500 crore investment in India sees the charting of an online venture before the end of 2019. UrbanClap, an online platform that connects consumers to carpenters, will help Ikea in assembling the furniture. Focusing on Indian needs, the store will sell around 7,500 products with over 1,000 products priced for less than Rs 200. The products, 20% of which will be sourced locally, will range from masala and spice boxes to tawas, idli makers and coir mattresses.
Ikea entered the Indian market after more than a decade of planning and research, and has plans to ground itself in the Indian market for the long haul. Employing over 900 people, the firm hopes to give stiff competition to local players like Pepperfry, Urban Ladder, Future Group’s Hometown and Godrej Interio.