Swedish furniture conglomerate, IKEA is amidst plans to open small city outlets alongside mega formats in India, with sturdy online channels, to meet changing consumer behavior in recent years.
For the unversed, the company received approval from the Indian Government for investing INR 10,500 crores in 2013 which will be utilized for launching 10 furnishing and homeware stores in the country in the next 10 years. Apart from its current plans, the corporation also aims to create 15 more stores in the country after its initial goal is achieved.
Currently, the company has successfully begun operations across Bengaluru, Hyderabad, and Navi Mumbai alongside two city centers in Mumbai.
Elaborating on the ramifications of the COVID-19 pandemic on the conglomerate’s expansion opportunities, Susanne Pulverer, CEO of IKEA India, claimed that the company witnessed slightly slower growth due to the pandemic and is learning from the first markets it has opened.
However, on the way forward, Pulverer said that the company needs to be close to its customers therefore it is looking at smaller formats that are yet big for Indian retail.
Clarifying her stance on this development, the CEO stated that the global consumer demand for the more convenient alternative of delivering is a prime factor driving the establishment of an Omni channel that will fulfill consumer needs of planning and designing homes to their full potential.
With regards to online expansion, the conglomerate is planning to trail on the route of establishing both, physical and online stores to capitalize on the benefits of both the modules, wherein one can get the inspiration for the online store and subsequently work on it by visiting the IKEA center.
Notably, the online channel has reportedly contributed around 30% to overall revenue as per the latest statistics.