IKEA, the popular Swedish furniture brand, is planning to expand its network by opening stores in Delhi and Noida. The company also announced that they will come up with the Ingka Centre, which will be situated in Gurugram. The center will be a mixed-retail destination that is supported by the Ikea group and is expected to come in 3-4 years time.
Besides, they are also planning to have an omnichannel presence by opening small and big stores and also building a great online presence, which can turn into a prominent sales touchpoint for the company.
Peter Betzel, CEO, IKEA India, who also acts as the Company’s Chief Sustainability Officer said “We have bought land in Gurugram and Noida and are looking for suitable locations in Delhi. We should be able to announce the timelines (for Delhi and Noida projects) soon.”
The Ingka Group’s home furnishing brand IKEA opened its first physical store in 2020 in Navi Mumbai and is also expanding its omnichannel presence through the launch of the IKEA App, which is available in Bangalore and in several cities of Gujarat.
Betzel also stated in this context,“We are looking forward to opening our first city store in Worli, Mumbai within this year. India remains one of the important growth markets for the Ingka group. We have the ambition to meet more than 200 million people by 2025.”
Sharing the thoughts on how the pandemic has altered customer behaviour, Betzel explained that more and more customers are shifting online.
Betzel also on the expansion plan stated, “We have been strengthening our online presence in new markets and also, introduced many online services such as ‘Click & Collect, home furnishing consultancy, remote planning amongst others”.
“Consumers are also looking at more affordable solutions. Consumers are thinking twice about every spend. During this time, Ikea has been able to lower prices for many of its products for the benefit of the customers. Demand for home furnishing has been getting better and will improve even further as the pandemic situation improves. Especially during this festive season, we have seen a lot of customers spending money on what they need for themselves and their families,” Betzel further added.
The brand has witnessed a 20-25% of its overall sales coming from India, but the company is planning to grow by 30% in the future as customers are drastically making a shift to online purchases.