IKEA’s push to reach 100 million customers in India will see the Swedish retail giant bet on online and smaller stores

• With just one large store in Hyderabad and the second one in Mumbai under construction, IKEA has already gone online in Hyderabad, Pune, and Mumbai.
• IKEA is also betting heavily on digital and e-commerce for growth in India.
• The company has just announced a new global office in Bengaluru, which will be for Global Business Operations (GBO), Digital, and Centres of Expertise (CoE).

Global retailing giant IKEA, which has always been famous for its large format stores with great affordable prices has been pivoting towards opening smaller convenience stores and going digital. Two years after its launch in India, the Swedish retail company is doing the same in the country.

With just one large store in Hyderabad and the second one in Mumbai under construction, IKEA has already gone online in Hyderabad, Pune and Mumbai. IKEA’s Hyderabad store is spread over 13 acres of land and also has a 1,000-seater restaurant. But many of the future stores might not look the same.

“The company will also open smaller format city centre stores and expand its online presence in other Indian cities in the future,” the company said.

Recently, IKEA had also launched Click & Collect Services in Hyderabad, where one could order online and then just go and pick it up. And as many others, IKEA is also betting heavily on digital and e-commerce for growth in India.

Through a multichannel approach, the company wants to reach 100 million customers in India.

IKEA has not been immune to the impact of COVID-19 in India. It has delayed its launch in Mumbai because of the pandemic, and also dropped its prices across products.

The company has just announced a new global office in Bengaluru which will be for Global Business Operations (GBO), Digital, and Centres of Expertise (CoE). “India is not only a growing retail destination for us but also one of the strongest markets when it comes to global business operations capabilities. India is central to our growth plans and the GBO will help simplify, standardise and modernise customer and business transactions, procurement operations, financial reporting and people operations. We have long-term growth plans and plan to expand over time,” said Lalitha Indrakanti, Head of Global Business Operations for Ingka Group.

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