[ecis2016.org] Ikea’s first store in India is already a hit because of affordable price tags and varied product range
Inaugurated in August 2018, Ikea’s first store in India is already a hit amongst Hyderabadis for obvious reasons. Though the success story is yet to be written for the brand, affordable pricing, locally sourced items and range of products have enticed the customers. Around 40,000 overzealous customers turned up on day one, causing heavy traffic on approach roads was just the showcase. With 24 more stores in the pipeline across the country and over 40 small and large-format shops in tier II cities, IKEA is all set to upsize its game in the world’s biggest consumer market.
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Here are interesting facts about IKEA’s first outing in India-
IKEA has over 7,500 varieties of products on display with over 1,000 products priced less than Rs 200. In fact, in order to understand the needs of Indian families, IKEA team visited 1,000 households of the varied income range.
As per India’s Foreign Direct Investment (FDI)norms, around 20 per cent of the products sold in IKEA is locally sourced while over 1,000 products are made in India.
IKEA has 1,000 seater restaurant in Hyderabad store, biggest in the world. The food is sourced from vendors, mainly women-led social enterprises. Half of the menu is vegetarian and includes Indian delicacies.
IKEA is soon going to launch its e-commerce operations from Mumbai and will serve to cities where it can deliver and assemble the products. Bengaluru, Gurgaon, Ahmedabad, Surat, Pune, Chennai and Kolkata are other cities in the pipeline. The brand has also signed a Memorandum of Understanding with Uttar Pradesh government to set up an outlet in Noida.
Hyderabad IKEA store employs 950 co-workers directly and 1,500 indirectly. The brand targets to employ 2,300 people per store. However, according to company officials, the upcoming Noida store will employ 8,000 direct and indirect workers.
The company currently has 403 stores in 49 countries and has been sourcing its products from India for its global stores for more than 30 years.
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