July 19 is the day Hyderabad will step into India’s first Ikea store after the firm announced a Rs 105-billion foreign direct investment in the country. The firm has invested Rs 10 billion in its Hyderabad facility. The world’s largest furniture retailer’s six-year-long wait will end this month as it opens its first store in India. The company’s first India store — a 400,000-sq ft facility of four floors in addition to two floors of parking in Hyderabad’s IT hub — is getting final touches.
After years of research and preparation, Sweden-based IKEA will in a few days unveil its store in Hyderabad, which will include a slew of localized offerings. It will even deploy some 850 personnel to help shoppers navigate the sprawling property.
The company has in the last four years visited over 1,000 Indian homes to gain insights into how India lives: in cramped apartments, sprawling houses, and navigating chaotic traffic daily. People in Asia’s third-largest economy have diverse household needs, which IKEA looks to fulfill by deploying an army of assemblers, offering more brightly colored furnishing options, and Indianising its in-house restaurant.
Entertainment inside the signature blue-and-yellow store, It has a Restaurant and Furniture Hub in it. All Around The world, IKEA’s in-store restaurants are a huge draw among shoppers.
The retailer began selling food at its first store in Ahmult, Sweden, back in 1956 to let hungry shoppers take a break. However, food went on to become a core part of IKEA’s business, so much so that today it contributes 5% to the company’s turnover. The retailer often localizes its menus—in Turkey, it sells Turkish bagels and doner platters; in China, rice is a staple. “Food can be the first contact point for IKEA in India,” Patrik Antoni, deputy country manager of IKEA India, told in an interview.
The 1,000-seater facility at its Hyderabad store will be the firm’s biggest restaurant globally, the idea being to draw more shoppers, especially families. With 37% of India’s population being vegetarian and even the non-vegetarians often avoiding beef and pork, IKEA’s menu will reflect that. So its meatballs will have chicken and vegetables here instead.
In any case, about 50% of the menu will be “Indian:” samosas, dal makhani, idli, and biryani. The other half of the menu will remain Swedish, with IKEA’s signature salmon and shrimp dishes.
In most global markets, it is perceived as a value retailer. However, in India, where it plans to reach up to 200 million people in the next three years, purchasing power is relatively lower than in other parts of the world where IKEA has a presence. So the furniture giant will calibrate its price tags accordingly. It also plans to bring its wide range of kids’ offerings to India.
Swedish home furniture giant Ikea will be launching online sales in this country when it opens its second India retail store in Mumbai next year.
SIASAT NEWS