Hyderabad: With its first store in India set to open on Thursday, Swedish home furnishings major IKEA said it is looking to expand here at a faster pace as compared to elsewhere.
The company which is looking to set up 25 stores in India by 2025 will also enter e-commerce segment by next year, besides exploring small format stores as part of expansion plans in the country.
“We want to be accessible and from Thursday we will be accessible in Hyderabad. Now we will try our best to speed up our expansion to move quicker than normally we do in IKEA,” IKEA Group CEO Jesper Brodin said here.
After Hyderabad, IKEA’s second store would be in Mumbai next year followed by Bengaluru and Delhi-NCR. The company’s first store in India comes more than five years after it received the government’s nod for its Rs 10,500 crore investment in the country in single brand retail.
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 and has a built up area of 4 lakh sq ft.
Tackles high taxes to keep prices low
- IKEA is looking to keep prices even lower in India than it typically does elsewhere when it opens its first store in the country on Thursday, overcoming high taxes on imported goods as it woos cost-conscious shoppers unaccustomed to DIY furniture.
- It is betting on India with its growing middle class, but mindful of the relatively high pricing that hit sales when entering China and Australia.
- The firm said raising the proportion of locally sourced materials would help it overcome import duties.
(With inputs from PTI)