IKEA to go online next year, to open its first India store in Hyderabad

IKEA to go online next year, to open its first India store in Hyderabad

Hyderabad, Jul 5: Swedish home furniture giant Ikea will be launching online sales in this country when it opens its second India retail store in Mumbai next year.
The company’s first India store — a 400,000-sq ft facility of four floors in addition to two floors of parking in Hyderabad’s IT hub — is getting final touches.
It is set for a formal opening on July 19, almost six years after the firm announced a Rs 105-billion foreign direct investment in the country. The firm has invested Rs 10 billion in its Hyderabad facility.
During a preview of this store, Ikea’s India Chief Executive Officer Peter Betzel told the media that India was going to be a unique experience as the firm would look beyond large-format stores.
He said the company also expected the online pie in India to be bigger than the 6-7 per cent share it has been getting through online sales in a dozen countries so far.
“To buy a sofa you have to first sit on it. Touch and feel is very important for a customer to buy. But as online buying in every product area is growing, it will be so in furniture segment too. We will enter this channel next year when we open our store in Mumbai,” Betzel said.
Besides the large-format stores, which would come up in peripheral areas of large cities, and the online foray, the company would also look to set up small experiential stores of 10,000-50,000 sq ft in cities, depending on the business experience they are going to have in India.