Swedish home furnishings retail giant IKEA has launched its online store in Mumbai as part of its multichannel approach to reach 100 million customers in the next five years. It will open a small format store in Mumbai and a big format store in Navi Mumbai, an official statement said.
“India’s retail landscape is changing at a scale and pace not seen before driven by increasing urbanization (sic) and changing customer behaviours. Today marks an important occasion in our history as we roll out our multi-channel, digital first approach with Mumbai being amongst the first few markets worldwide where we are bringing alive this transformation,” said Peter Betzel, chief executive officer, IKEA India.
The online store will offer 1,000 products priced below Rs 200 and the prices will remain the same all across India, both in retail stores and online, the statement added.
“Using our learnings from Life@Home and our unparalleled product proposition, we are looking to inspire the many people of Mumbai to re-imagine their homes with affordable, simple, imaginative home furnishing solutions that are practical but at the same time also beautiful, multi-functional and sustainable. We are here to learn from the city as much as we are here to offer our solutions. Thus helping the many maximize the potential of their homes enabling a brighter everyday life at home,” Betzel said.
IKEA is renowned for its do-it-yourself (DIY) assembly model. It opened its first store in India last year, a massive 400,000 sq. ft facility in Hyderabad.
The company has more than 55 suppliers with 45,000 direct employees and 400,000 people in the extended supply chain across India. The IKEA group operates 423 stores across 51 countries.
IKEA recently invested in the Indian home decor segment. In May, Bengaluru-based home decor startup Livspace said it had raised an undisclosed amount from Ingka Investments, the investment arm of the Ingka Group, which owns and operates IKEA. The deal is expected to help the furnishings giant expand its offline presence in the country.
Currently, only 5-10% of the Indian interior design market is online while another 10-20% lies with the semi-organised players. The remaining 70% is in the unorganised market, according to a report by research firm RedSeer Consulting.