Ikea stores in India: Cancel long trips for Ikea as it plans to reach the neighborhood to connect with people
“We need to be close to where the people are. So that’s when we also looked at the smaller formats which are still relatively important to Indian retail,” said Susanne Pulverer, CEO from IKEA India, to PTI in an interview.
When asked if this involved fine-tuning the company’s strategy in India, Pulverer replied, “Yes, it does. Not just in India, it’s also a global phenomenon that we’re seeing. This is not enough with the department store outside (of the city). home, they want it delivered. So we can be closer to people and have different ways of meeting them.”
So it’s going to be omnichannel, she said, adding, “It’s the big, full IKEA experience and it’s smaller, maybe even smaller, formats where you can come and plan and get service to design your house.”
So far, Ikea has set up three mega format stores in Hyderabad, Navi Mumbai and Bengaluru and two city centers in Mumbai.
In 2013, Ikea received government approval for its investment of Rs 10,500 crore to open stores in India. He planned to establish 10 home furnishing and homeware stores along with related infrastructure in over 10 years in India. Subsequently, he planned to open 15 more stores.
“Slowed down a bit during the COVID period, but we are also learning from the first markets we have opened,” Pulverer said.
It comes shortly after Ingka Centres, part of the Ingka Group which includes IKEA Retail and Ingka Investments, said it would invest nearly Rs 7,500 crore in the development of two shopping destinations in the NCR, as looking to explore more cities for retail destinations.
Pulverer said IKEA is still in the investment phase of its approved FDI and further investments have not been planned, although the furniture retailer is committed to the Indian market for the long term.
“We think we’ll have a lot more stores and we’ll have omnichannel because we see that’s the future. The combination, and how many, which year I’m not ready to share yet. We’re working with those plans,” she said. said.
Asked about the online expansion, Pulverer said: “We want to go together physically and online is the best. We have done a few pilots in the three cities of Gujarat with only online. We are evaluating but we know that it’s a whole experience to find inspiration and then you have to go to an IKEA store, so it’s never so good to just put it online.
She said the online channel’s current contribution to overall sales is around 30%, having increased during the pandemic and remaining high.
“We think that will continue to be more and more important, but we think the physical experience will also remain. So I think the combination is perfect actually. People are choosing when to shop from home and when to go out and live the experience. So he will be the mix for the future that will be needed,” Pulverer said.
Ikea also offers products online through the website or app to its customers in cities such as Bangalore, Hyderabad, Mumbai, Pune, Ahmedabad, Surat and Vadodara.
(With PTI entries)