The Swedish furniture company has so far opened two city centres in Mumbai, three mega format stores in Navi Mumbai, Hyderabad, and Bengaluru.
According to a senior company executive, the Swedish furniture giant IKEA aims to create local city branches in addition to its mega format stores in India with the use of an online channel.
A shift in consumer behaviour is what led to this change in strategy.
The business, which in 2013 gained government approval for its investment of Rs 10,500 crore for opening stores in India, had planned 10 furniture stores and related infrastructure in India over a ten-year period.
Later, IKEA has 15 more stores it intended to open. It has so far opened three large format stores in Navi Mumbai, Bengaluru, Hyderabad, and two city centres in Mumbai.
IKEA India CEO Susanne Pulverer responded to a question about how the pandemic has affected the company’s aspirations for growth in India by saying, “A little bit slowed down during the COVID era but we are also learning from the first markets we have opened.”
She stated that in order to move forward, we must be near where the people are. At that time, we also took a look at more compact formats that are still significant in Indian retail.
Pulverer responded “Yes, it is” when asked if that meant changing the business’s approach in India. We observe it not just in India but also throughout the world. Even with the large store outside, it is not enough (city). People want their purchases delivered since they lack the time or may not have a car to carry everything themselves.
Then, we can get to know people better and have more opportunities to interact with them. She continued, “It’s the large IKEA full experience and it’s smaller sizes, maybe even smaller, where you can come and plan and get support for designing your house.” As a result, it will be omnichannel.
IKEA is still in the investment phase of its approved FDI, according to Pulverer, and no more investments have been planned despite the furniture retailer’s long-term commitment to the Indian market.
“We think the future holds many more stores and omnichannel because that is what we perceive as the future. I’m not yet prepared to reveal the combination, the quantity, or the year. She stated that we are implementing these strategies.