Swedish Furniture Giant IKEA To Open Stores In 30 Indian Cities In Next Seven Years
As the Covid-19 pandemic and nation wide lockdown had delayed the construction and opening of new stores, Furniture giant IKEA has accelerated its expansion plans in India.
“If you have a lockdown you can’t continue to construct. But now we are back at full speed,” said Peter Betzel, Ikea’s chief executive officer for India.
He added that they are hopeful of meeting the target of rolling out shops in 30 Indian cities within the next seven years, reports The Economic Times.
According to him, India’s lockdown helped bolster IKEA’s online business, which now accounts for 40 per cent of total sales compared to about 10-15 per cent a year ago.
After opening its first store in India in 2018 in Hyderabad followed by the one in Mumbai in 2020, IKEA plans to open its first shopping centre in India at Noida of Uttar Pradesh.
Noida Authority handed over a land parcel measuring nearly 50,000 sq metres in Noida's Sector 51. The company was allotted the plot after paying Rs 850 crore.
Meeting the local sourcing requirements and growing competition in the domestic furniture segment of India are the challenges that face IKEA.
Mukesh Ambani’s acquisition of online furniture seller Urban Ladder in November, 2020 through his Reliance Retail Ventures Ltd is bound to increase the competition in USD 40 billion furnishing market in India.
“I don’t see them shaping up as competition immediately simply because IKEA does have a very strong head-start from a branding perspective and range. In due course of time, yes, not only Reliance but there will be a couple more because this is a fast growing segment in India,” said President of Technopak Advisors Saloni Nangia.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.