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The retail sector in India will never be the same once IKEA enters the Indian market
The Swedish multinational plans to open its first Indian store, in Hyderabad, in 2017. IKEA is the world's largest furniture store.
The ground-breaking and foundation-laying ceremony for the store was held on a 13-acre plot in HITEC city, Hyderabad, on August 11. “This is a big milestone,” said Juvencio Maeztu, CEO of India operations, after joining the spade-work.
IKEA Hyderabad is the first of its 25 stores to come up in India by 2025. The Hyderabad store will have a built up area of 4 lakh square feet. It will also have 1000-seat restaurant, serving both Indian and Swedish cuisine.
IKEA plans to invest Rs10,500 crore in India. “The plan is to add two or three stores in a year,” said Maeztu. Each store will employ 500 direct co-workers and 1,500 others providing allied services outside. At least half of these workers will be women.
A peep into the world of IKEA
The name
Founded in 1943, IKEA is the acronym of its founder’s initials (IK) from the name Ingvar Kamprad plus the first letters of Elmtaryd (E) and Agunnaryd (A), the farm and village where he lived.
The philosophy
“Better everyday life for the many people” is the vision of IKEA. The Swedish multinational says its unique culture is based on humanistic values, portraying togetherness, meekness, simplicity, cost-consciousness, giving and taking responsibility and common sense.
The business
Initially selling only small popular goods like pens, wallets, picture frames, watches, jewellery and stockings, the store entered the furniture sector five years later, in 1948.
IKEA prides in giving value for money, selling a wide range of home furnishing items with good design and function, at affordable prices. It promotes “Democratic Design”, aiming to give not-so-rich people a chance to furnish their homes in a beautiful and functional way.
The numbers
IKEA operates 315 stores in 27 countries. In 2014, more than 71.6 crore visitors were served by 1.5 lakh staff, and the company had a sales turnover of €28.7 billion ($32.37 billion).