Peter Betzel, Chief Executive Officer of Ikea India declared in a press release that, the Swedish home furnishings retailer Ikea is set to begin its e-commerce operations in India by March 2019. In fact, Ikea will create a multichannel experience for its customers in India. It will launch its ecommerce venture in Mumbai in March and introduce other touch points to bring the brand closer to consumers.
Betzel further added that, Ikea India already had an online platform which was already in the process of linking various platforms to maximise business. Ikea’s entry in the digital marketplace could be a threat to Amazon, Flipkart and other leading e-tailers.
As per various media sources, Ikea is aiming to achieve profits by developing the business online along with having physical meeting points.
Ikea had launched its first store in India in Hyderabad on August 9. The Mumbai store is also set to open later this year. In fact, the Swedish retailer is likely to invest Rs 1,000 crore for its 500,000 sq. ft outlet in Bengaluru, which is anticipated to open in the summer of 2020. It will have a parking space for 2,000 cars and will also have a 1,000-seater restaurant. In addition, it will have a supervised play area for children. The store will employ 800 to 1,000 employees directly, while another 1,500 will be employed indirectly.
Peter Betzel stated that “Bengaluru is truly cosmopolitan with many people moving in to find new opportunities. With the Ikea store, we will contribute to a better everyday life for all Bengalureans with well-designed, functional home-furnishing solutions.”
As per media sources, Ikea is apparently looking to increase its investments in India, witnessing the rapid growth of the retail sector.
On the launch of its first store in Hyderabad, Ikea officials had earlier stated that they plan to open 25 stores in India. However, now the numbers have increased, and they have planned to open more than 40 stores across different formats.
The stores will be multiple small format stores of 1,000-5,000 square meters each in Tier 1 cities like Mumbai for having more touch points.
In fact, the Swedish retailer sees potential to set up large or small format stores in at least 49 Indian cities that have a population of more than a million each. After setting up shop in Mumbai, Ikea is aiming to open more stores in Bengaluru, Delhi, Ahmedabad, Pune, Chennai, and more.
In wake of the investment plans, they will also be approaching the Indian government to receive approval to invest in more Foreign Direct Investment (FDI).