Hyderabad: Swedish home furnishings giant IKEA opened its first store in India, on Thursday kicking off its retail journey five years after it received an approval to invest in the country’s single-brand retail sector.
The food served at their restaurant will be at a subsidised rate keeping the middle-class Indian in view. After a lot of research IKEA decided to sell their products at a lesser price in India to make them affordable.
IKEA Group CEO Jesper Brodin said the opening of the first store in India marks a milestone in the company’s journey here which began over three decades ago through sourcing of products. “We have a long term commitment to India, which is an important market for us,” he added. He said the company has also identified four more cities in India where it plans to set up its stores but did not disclose details.
Some fact you need to know:
- The store is the first of 25 such outlets planned to be set up in India by 2025. In 2013, IKEA received nod from the government to invest Rs 10,500 crore in single-brand retail. Out of the total outlay of Rs 10,500 crore, the company has so far invested Rs 4,500 crore in its different projects in India.
- It has invested Rs 1,000 crore on the Hyderabad store alone, which would have a range of around 7,500 products. The store is spread over 13 acres of land and has a built up area of 4 lakh sq ft.
- After Hyderabad, Ikea’s second store would be in Mumbai next year, followed by Bengaluru and Delhi-NCR. Chennai, Kolkata, Ahmedabad, Surat and Pune are likely to come next.
- The 13-acre complex in Hitec City, located on the outskirts of Hyderabad, is built on an area of 400,000-square-foot and contains over7,500 products. It is expected to welcome over 60 lakh visitors in a year and will be bringing inexpensive Nordic-inspired furnishings and food to the country.
- Partnered with UrbanClap, they have hired over 150 staff to offer paid delivery and assembly options to make sure its model of self-assembling furniture doesn’t harm its market in India, which largely lacks a DIY culture.
- Ikea’s Hyderabad complex will have their largest restaurant – a 1,000 seater and with innumerable options on its menu. The affordability of the food served has also been planned according to the spending capacity of the middle-class.
- IKEA said is has adopted a “non-negotiable” approach to hire 50% women at all levels in India, even “including forklift drivers and assembling co-workers”.
IKEA will offer delivery and assembly service to its customers who are not familiar with the DIY (do it yourself) concept.
Commenting on the company’s recruitment plans, IKEA India HR Manager Anna-Carin Mansson said the company’s aim is to make retail an attractive career choice for young people in the country. “Our aim is to recruit 15,000 people…in the coming years,” she added.
(With inputs from agencies)