IKEA looks at multi-channel growth in the coming years
By Retail4Growth Team | August 12, 2019
Last year, on August 9, IKEA opened doors of its first store in India to the many people of Hyderabad.
IKEA, the world’s leading multi-channel home furnishings retailer completes a year of successful operations in India today.
Last year, on August 9, IKEA opened doors of its first store in India to the many people of Hyderabad. The day was a landmark moment for IKEA witnessing more than 40,000 visitors on the first day of the store opening.
Speaking on its first-year milestone, Peter Betzel, CEO, IKEA India said, “It is very special that we have completed a year of retail operations successfully in India. Thank you to all our co-workers, customers and partners who have helped us build a strong foundation. India is a long-term commitment for IKEA, and we will focus on fast expansion with a multichannel approach. In the coming years, our goal is to meet 100 million customers with our beautiful and affordable home furnishings’ offer to make everyday life at home better and brighter. Our next destination is Mumbai where we will soon start our e-commerce journey enabling us to meet many more customers, followed by Hyderabad and Pune going online.”
For IKEA India it has been a year of learnings and connecting with new customers every day, as well as welcoming the many people of Hyderabad to the store. It has been a journey of discovering IKEA for the customers and how IKEA helps them realize their dream of a beautiful home that combines quality, functionality, sustainability and form at affordable prices.
Aurelie Raimon, Store Manager at IKEA Hyderabad added, “It has been an exciting time for us, full of work, inspiration and learnings. Indian customers have humbled us with their love. We have welcomed 4 million+ visitors so far and still counting. We are coming closer to understanding what our customers like, their preferences, challenges and frustrations of everyday life at home. We want to continue being a part their life enabling them to make room for more quality time with their loved ones.”
The Hyderabad store is managed by 820 co-workers, 41 per cent of whom are women. 18 different languages are spoken at the store. IKEA is highly focused on sustainability. Some of the sustainability measures that were taken during the last year at the store includes installation of 1973 solar panels on the store’s rooftop. Closing the loop on food waste from the store is a big focus, a bio-digester has been installed at the store to that end. 80 per cent of this waste is recycled or incinerated for energy recovery under the ‘waste to livelihood’ project in nearby community. From these community farms IKEA is sourcing fresh produce for the restaurant. The store recycles the water used in the store, IKEA also ensures that all textiles are made from 100 per cent better cotton, all lights are 100 per cent LED and 77 per cent wood in IKEA products come from more sustainable sources.
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Spread across 4,00,000 sq ft area and located at Hyderabad’s tech hub HITEC City, IKEA’s first store in India is the brand’s formal commencement to open retail stores in 40+ cities across the country. The retailer’s entry into India’s retail shore is expected to challenge value shopping in home segment.
Store will directly employ 500-700 people, half of them women, and create 1,500 jobs indirectly