IKEA, a Swedish furniture retailer, wants to modify its approach in response to shifting consumer behaviour by opening local city shops in addition to its mammoth size stores in India, supported by an online channel.
The company, which had secured government approval for its investment of Rs 10,500 crore for launching stores in India in 2013, had planned to establish 10 furniture and home-ware stores as well as supporting infrastructure in India over the course of ten years. The company then intended to add 15 more locations. It has so far opened three large format stores in Navi Mumbai, Bengaluru, Hyderabad, and two city centres in Mumbai.
The Swedish furniture retailer IKEA plans to change its strategy in response to changing consumer behaviour by constructing small-scale stores in cities in addition to its enormous showrooms in India, which will be supported by an online channel.
The company, which had obtained government approval for its investment of Rs 10,500 crore for opening stores in India in 2013, had intended to build ten furniture and home-ware stores in India over the course of ten years, together with accompanying infrastructure. The company then has plans to open 15 additional facilities. Three large format stores have already been launched by the company in Navi Mumbai, Bengaluru, Hyderabad, and two Mumbai city centres.
When asked if that necessitated changing the business’s India strategy, Pulverer responded, “Yes, it does.” 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 forms, maybe even smaller, where you can come and plan and get service for creating your house.” So, she added, it will be omni channel.
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.
According to her, the online channel currently contributes about 30% of total sales, up from 20% before the pandemic and remaining high. However, we also think that physical experience will endure and continue to grow in importance. I truly believe the combo is perfect. People decide when to go out and shop in person versus when to shop from home. Therefore, Pulverer stated, the blend of the future will be required.
Ikea also provides products to its consumers in cities like Bengaluru, Hyderabad, Mumbai, Pune, Ahmedabad, Surat, and Vadodara via the company’s website or mobile application.