Swedish furniture giant Ikea is entering Indian market with its first store in Hyderabad. The world’s largest furniture retailer, IKEA is popular for it’s wide range of ready-to-assemble furniture and modern interior design patterns.
IKEA’s first store in Hyderabad will be a massive 4 lakh square feet in size stocking over 7,500 furniture and home furnishing products, and featuring a huge restaurant, which can hold 1,000 people.
Interesting facts about IKEA in India
The fact that IKEA uses 1 percent of the world’s commercial wood supply may hurt all the eco-conscious customers. While this sounds like quite a toll on the world’s wood supply for items that don’t usually last very long, IKEA has a sustainability plan for all this wood. To promote its eco-friendly initiatives, the new store in Hyderabad will have its rooftop covered by solar panels to provide 3,000 KW for its energy needs.
IKEA expects that about 50 percent of its workforce will be women, and it will directly hire at least 500 employees for its store in Hyderabad.
After Hyderabad, the next IKEA store in India will come up in Mumbai. The company is also considering a production facility in India in order to cut down on logistics costs.
Will IKEA survive in Indian furniture market?
The Indian furniture market today suffers from a lack of uniform and dependable brands. The entry of IKEA in Indian furniture solutions can either be a make or break situation. Let’s see how:
- Firstly, IKEA furniture is designed to be self-assembled. Do-It-Yourself furniture is a relatively new concept for Indian consumers. IKEA will need to invest a considerable amount of time & money on customer engagement programs to make them accustomed to this newer approach.
- To survive in the long run the IKEA product prices should be kept at par or lower than the competitors. While choosing a pricing strategy it’s very important to consider that the product is affordable for an average Indian consumer.
- It’s a known fact that IKEA furniture is made out of pressed wood or fiberboard, which makes them not so strong and durable as solid wood. In India where buying furniture is considered to be a long-term investment, it will be challenging for IKEA to win the hearts of Indian consumers.
Though we are unsure about the target audience of IKEA in India, let’s hope and pray that the international brand benefits the masses.