<ul><li>In an interview with Business Insider, <keyword id="2412089" type="COMPANY" weightage="20" keywordseo="Preet-Dhupar">Preet Dhupar</keyword>, <keyword id="6429663" type="ORGANIZATION" weightage="20" keywordseo="ikea-india">IKEA India</keyword>’s Chief Financial Officer shares the Swedish furniture retail giant’s big plans for India. </li><li><keyword id="6371031" type="UNKNOWN" weightage="20" keywordseo="IKEA">IKEA</keyword> India is finally opening the doors for its second store in India – <keyword id="5117782" type="UNKNOWN" weightage="20" keywordseo="IKEA-navi-mumbai">IKEA Navi Mumbai</keyword>. </li><li> IKEA sees India as a long-term investment with the stores in Mumbai and Navi Mumbai, Bengaluru opening next and a land acquisition done in Gurugram for their first store in the North. </li></ul>Ikea may be used to gala events where thousands of people throng every store opening anywhere in the world. But the latest one in Navi Mumbai is likely to be a relatively sombre affair thanks to the COVID-19 pandemic. However, while it has toned down the fanfare associated with the Swedish furniture retailer, there is little change in the company’s goals. In line with its global strategy, the company is sticking to its planned store openings in India, and hasn’t changed its strategy, the Chief Financial Officer, Preet Dhupar, responsible for the market told Business Insider. “India is a growth market for us, this is where a big part of the world’s population lives with a majority of young people starting their journeys. We want to be a part of their journey. Few years down the line, IKEA India hopes to be one of the biggest markets for the global team,” she said. <div type="Youtube" id="LgOXv2qEkc4" title="IKEA India Is Finally Opening The Doors For Its Second Store In India – IKEA Navi Mumbai" thumbUrl="https://i.ytimg.com/vi/LgOXv2qEkc4/mqdefault.jpg"></div> It is expected that there will be a considerable change in people’s behaviour⁠— in that, they are likely to avoid crowded places like shopping areas and malls. That has led many retailers like Reliance Retail, DMart, and Shoppers Stop to pivot to a new strategy where more sales come from online platforms. While Ikea too has relied on online sales during the pandemic, it hasn’t scaled down on its offline aspirations. “Of course, the targets have been revised as they have for all global outlets of IKEA. But that doesn’t change our investment plans in India,” she said. IKEA will pump in ₹10,500 crore into its India unit⁠— ₹7,000 crore has already been spent in fulfillment centres and store, land acquisitions in the country. According to Dhupar, the next store will be opened in Bengaluru, followed by Gurugram, its first one in North India, which reportedly has been delayed because of the company’s <a href="https://www.thehindubusinessline.com/companies/ikeas-gurgaon-project-to-get-delayed-as-it-rejigs-plan/article33154806.ece#:~:text=Swedish%20furniture%20giant%20IKEA's%20plans,2017%20to%20build%20the%20store.">revised plans for the city</a>. As the 5.3 lakh sq ft store in Navi Mumbai, opens its doors to the public today (Dec 18), IKEA India will hope to make up for a lost year. However, it is likely to be a much smaller crowd than what Ikea is used to. IKEA’s opening in Hyderabad which saw over 15,000 people line up on the first day itself, won’t be a scene replicated in Mumbai. “We will be nowhere near that, in fact it will be 1/5th the number,” said Dhupar. “Thanks to the size of our stores, we can make way for people to have a safe shopping experience. We are able to maintain social distancing with people having enough space to shop around,” said Dhupar. In the last year, IKEA India has seen over 25 million people shop online and 5-6 million people walk into its Hyderabad store. With the easing off of the pandemic restrictions, Dhupar is keeping her fingers crossed to see the same number in the coming year, if not more. “IKEA India is just scratching the surface when it comes to making a mark in the global numbers. You have to understand, we had just the one store in India until a few days ago. But hopefully, with the new store, we will be able to double the numbers,” she said. SEE ALSO: <a href="https://www.businessinsider.in/tech/enterprise/news/wistron-apple-iphone-manufacturer-could-face-these-penalties-if-found-guilty/articleshow/79790319.cms">If investigators find Wistron management guilty, here's what is at stake for the company</a>

INTERVIEW: Ikea CFO says she still has ₹3,500 crore to be spent in India⁠— the pandemic has changed targets but not the investment plan

<ul><li>The Swedish brand and <keyword id="10378432" type="UNKNOWN" weightage="20" keywordseo="global-furnishings-retailer">global furnishings retailer</keyword>, <keyword id="6371031" type="UNKNOWN" weightage="20" keywordseo="IKEA">IKEA</keyword> is all set to open the doors to its Navi Mumbai store on December 18.</li><li>The store will be on the Thane-Belapur Road, approximately 600 meters from the Turbhe Station. </li><li>Peter Betzel, the CEO of IKEA India said “With our long-term commitment to Maharashtra we will create 6000+ jobs by 2030 of which 50% will be women” </li></ul>The Swedish brand and global furnishings retailer, IKEA is all set to open the doors of its Navi Mumbai store on December 18. This will be its second physical store in India after it entered the country over two years ago with the first store in Hyderabad. The new store will be located on the Thane-Belapur Road, approximately 600 meters from the Turbhe Station. The company said the customers will now be able to test, try and purchase some of IKEA’s iconic products such as BILLY Bookcase, MALM Bed, EKTORP Sofa, among others in the new store. Peter Betzel, the CEO of IKEA India, said, “We are very excited, as Mumbai is one of our priority markets in India. We have been present online in Mumbai since early 2019, and soon the many people of Mumbai will be able to shop at our fantastic IKEA store.” It added that after the Navi Mumbai store, two smaller format stores would open in Mumbai during 2021. The ambition is to enter prioritized markets in India with an omnichannel approach with beautiful, affordable, good quality and sustainable home furnishings products. A boost for local jobs The company in the Navi Mumbai store will be employing close to 1200 coworkers out of which 50% are women. It said the 40% of its staff are from the Navi Mumbai area, and 70% of its support staff – mainly housekeeping and security are from in and around Turbhe and Ghansoli. The IKEA CEO said they have a target to create over 6000 jobs by 2030 in Maharashtra of which 50% will be women. A store in Noida soon The furniture giant IKEA will soon<a href="https://indianexpress.com/article/india/ikeas-largest-india-store-to-open-in-noida-soon-7075961/" data-type="tilCustomLink"> begin work at its Noida outlet</a>, which is touted to be its biggest store in India. The company had signed an MoU with the Uttar Pradesh government in December 2018 for ₹5,000-crore investment in Noida and other cities in the state. It has committed to completing the project by 2025. State Industries Minister Satish Mahana said 47,833 square metre land had been allotted to the company, but work did not take off due to pending payments. “All issues have been cleared, and the company has committed to finishing the project by 2025. I have issued directions to ensure the company gets quick possession of the land,” Mahana said on Thursday. The company also has online stores in Mumbai, Hyderabad and Pune. IKEA has reached over 35 million online visitors so far and has the ambition to reach 100 million Indian customers by 2022, the company said. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/a-coordinated-global-network-of-hackers-tried-to-break-into-the-covid-19-cold-chain-which-transports-vaccines-at-94-degrees-fahrenheit/articleshow/79549902.cms" data-type="tilCustomLink">A coordinated, global network of hackers tried to break into the COVID-19 'cold chain,' which transports vaccines at -94 degrees Fahrenheit</a> <a href="https://www.businessinsider.in/tech/news/sbis-mobile-banking-app-is-down-for-the-third-time-in-last-30-days/articleshow/79548953.cms" data-type="tilCustomLink">SBI’s mobile banking app is down for the third time in 30 days — digital services take a hit for the 25th time this year</a>

IKEA expands its footprint in India — to launch its second store in Navi Mumbai on December 18

<ul><li>‘The lower the prices we achieve, the more we will sell,’ <keyword id="6429663" type="General" weightage="20" keywordseo="ikea-india" source="Orion">Ikea India</keyword>’s Per Hornell said.</li><li>The company is planning to open stores in Delhi NCR and Bengaluru over the next few years.</li><li><keyword id="6371031" type="General" weightage="20" keywordseo="ikea" source="Orion">Ikea</keyword> wants to attract 200 million customers in India over the next few years.</li></ul>Sweden-based furniture retailer Ikea, which opened its first store in Hyderabad in 2019, plans to go big in India with reduced prices and new stores in metro cities. Per Hornell, market and expansion manager of Ikea India, said that the company is looking at revising its pricing for some of its products even further to attract more customers. “We must find ways to always make sure that the price becomes as low as possible. The lower the prices we achieve, the more we will sell. We are working intensively with making sure that the furniture part becomes even more affordable,” he<a href="https://economictimes.indiatimes.com/industry/services/retail/ikea-to-slash-prices-to-boost-sales/articleshow/85575629.cms?utm_source=ETTopNews&amp;utm_medium=HPTN&amp;utm_campaign=AL1&amp;utm_content=23"> added</a> in an interview with The Economic Times. For starters, Ikea will see a 20% price reduction for nearly four dozen products. Mumbai, Delhi-National Capital Region (NCR) and Bengaluru are among its top priorities and the company will open Ikea stores of different formats in each city in the next few years, Hornell added. Ikea, on Tuesday (August 24), announced the location of a new store in Kamala Mills in Mumbai. This store will be the third physical store that IKEA has opened in India. The store will be a much smaller store (around 80,000 square feet) compared to Ikea’s large format store (400,000 to 500,000 square feet) in Navi Mumbai opened in 2020. Globally, Ikea plans to open 50 new smaller format stores in top cities. Ikea’s physical stores in India <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Location </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Launch </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hyderabad </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2019 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mumbai </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2020 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mumbai city store </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2021 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Delhi, Bengaluru </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yet to be announced </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Ikea, in a press note on Tuesday, mentioned that it wants to attract 200 million customers in India over the next few years. The company plans to take an omnichannel approach to accomplish this goal, under which it will sell to customers through both online and offline medium. The company already has e-commerce presence in Mumbai, Pune, Hyderabad, Ahmedabad, Surat, Vadodara and Bengaluru. SEE ALSO <a href="https://www.businessinsider.in/business/startups/news/swiggy-sharechat-byjus-lead-the-funding-race-as-indian-startups-raised-6-5-billion-between-april-and-june/articleshow/85583697.cms">Swiggy, ShareChat, Byju’s lead the funding race as Indian startups raised $6.5 billion between April and June </a><a href="https://www.businessinsider.in/business/auto/news/royal-enfield-maker-eicher-motors-re-appoints-siddhartha-lal-as-md-amid-a-salary-hike-tussle/articleshow/85582376.cms">Royal Enfield maker Eicher Motors re-appoints Siddhartha Lal as MD amid a salary hike tussle</a>

Ikea products would now be cheaper in India

<ul><li>Swedish furniture retailer Ikea has opened its online for the residents of Mumbai, India's financial capital.</li><li>The company's launch in India's financial capital comes a year after its debut in Hyderabad.</li><li>That would pit the company directly in competition with the likes of Amazon, Flipkart, and Urban Ladder.</li></ul>Swedish furniture retailer Ikea has opened its online for the residents of Mumbai, India's financial capital. The launch in India's financial capital has come a year after the debut in Hyderabad. Mumbai will be the first city in the world where the multinational furniture retailer is going online without a physical store. With the entry of Ikea into one of the country's biggest consumer markets, competition is heating in the furniture space between a host of retailers both online and offline including the likes of Urban Ladder, Pepperfry, Home Town and Home Centre. However, organised retail is only a small portion of the total furniture demand, for which these players will battling each other. Going online first is not the only thing different about Ikea’s entry into Mumbai. Even after its online debut, the iconic stores of gargantuan size, roughly half a million square feet each, will be absent at least to start with. “The smaller stores can be 50,000 sq. ft - 150,000 sq. ft., large depending on what locations we are able to find," India Managing Director <a href="https://www.businessinsider.in/business/ikea-mumbai-store-launch-to-take-on-pepperfry-urban-ladder-and-flipkart/articleshow/70563420.cms" data-type="tilCustomLink" target="_blank">Peter Betzel told Business Insider</a> in an interview earlier this month. While Betzel didn’t elaborate on the rationale, the smaller stores may make sense in a crowded place like Mumbai where real estate is available at an exorbitant premium and travel can be cumbersome even for interested customers. The New York experience Even in New York, Ikea has a ‘planning studio’ in the upscale Manhattan area and not the standard blue-box store. It seems to have a similar plan for Mumbai too. “In addition to ecommerce and the Navi store, IKEA will also open smaller city center stores. This will make us more accessible and bring us closer to where customers are,” Betzel said. Ikea calls these smaller stores ‘touch points’ for the customer to get an experience before making the purchase. “Currently the decision is to open two city center stores in different parts of Mumbai. There could be more online and offline touchpoints in the future based on the learnings from the market,” Ikea’s top boss in India explained. The race is hotting up While both Pepperfry and Urban Ladder may have a headstart, they are going up against a giant in Ikea. The two startups put together have received investments worth less than $300 million in the last six years. On the other hand, “Ikea has committed to invest 1.5 billion euros ($1.68 billion) so far. Three Indian cities are in the fast speed expansion markets namely Mumbai, Bengaluru and Delhi/NCR. Our focus on India will only increase in the future,” according to Betzel. Even Flipkart, India’s largest online retailer, now owned by Walmart, is looking to set up experience centres. It unveiled an <a href="https://www.businessinsider.in/flipkart-offline-furniture-store-puts-its-in-competition-with-pepperfry-ikea-urbanladder/articleshow/70427696.cms">1,800 square feet outlet in Bengaluru</a> on July 29. With the likes of Walmart and Ikea throwing in their hat, running against smaller but more agile and homegrown players like Pepperfry and Urban Ladder, furniture retail in India is certainly set for exciting times. That would pit the company directly in competition with the likes of Amazon, Flipkart, and Urban Ladder, who have spent years and billions in building a customer base in India. But Betzel is more sanguine than many others would be. “With more players, the whole category will grow even more. There is place for everyone,” he said. The furniture market in India is expected to be worth $17 billion in the next three years but the big shops, malls and snazzy online retailers with discounts and offers sell <a href="https://redseer.com/reports/disruption-in-indian-furniture-retailing/">less than two in every ten pieces of furniture</a> bought in India. The trend is changing, especially in urban areas, and there is enough headroom for growth for the organised segment. 
 
 
 
 
 
 
 
 
 
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 SEE ALSO: <a href="https://www.businessinsider.in/business/ikea-mumbai-store-launch-to-take-on-pepperfry-urban-ladder-and-flipkart/articleshow/70563420.cms" data-type="tilCustomLink" target="_blank">Ikea will make its Mumbai debut ‘very shortly’, says India chief as the first store in Hyderabad turns a year old</a> <a href="https://www.businessinsider.in/i-visited-ikeas-new-manhattan-location-and-it-was-like-nothing-else-ive-seen-from-the-retailer/articleshow/68821133.cms">I visited Ikea's new Manhattan location - and it was like nothing else I've seen from the retailer</a>

Ikea in Mumbai: The Swedish retailer is wooing online shoppers in India's financial capital

Ikea has spent five years in India, and its flagship store in Hyderabad is turning a year old. Now, it’s time for its debut in the country’s financial capital, Mumbai, according to Peter Betzel, the Swedish furniture retailer’s Managing Director in India. An announcement is expected within the next few days, according to another source. “While the Navi Mumbai store is getting ready, our focus now is to launch e-commerce in Mumbai very shortly, to be able to meet the many Mumbaikars sooner,” Betzel told Business Insider in an exclusive interview. This is the first time the global retailer is entering a market without a physical store. That would pit the company directly in competition with the likes of Amazon, <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>, and <keyword id="6368309" type="UNKNOWN" weightage="20" keywordseo="urban-ladder">Urban Ladder</keyword>, who have spent years and billions in building a customer base in India. But Betzel is more sanguine than many others would be. “With more players, the whole category will grow even more. There is place for everyone,” he said. The furniture market in India is expected to be worth $17 billion in the next three years but the big shops, malls and snazzy online retailers with discounts and offers sell <a href="https://redseer.com/reports/disruption-in-indian-furniture-retailing/">less than two in every ten pieces of furniture</a> bought in India. The trend is changing, especially in urban areas, and there is enough headroom for growth for the organised segment. 
 
 
 
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 Touch points Going online first is not the only thing different about Ikea’s entry into Mumbai. The iconic stores of gargantuan size, roughly half a million square feet each, will be absent at least to start with. “The smaller stores can be 50,000 sq. ft - 150,000 sq. ft., large depending on what locations we are able to find,” he said. While Betzel didn’t elaborate on the rationale, the smaller stores may make sense in a crowded place like Mumbai where real estate is available at an exorbitant premium and travel can be cumbersome even for interested customers. Even in New York, Ikea has a ‘planning studio’ in the upscale Manhattan area and not the standard blue-box store. It seems to have a similar plan for Mumbai too. “In addition to ecommerce and the Navi store, IKEA will also open smaller city center stores. This will make us more accessible and bring us closer to where customers are,” Betzel said. Ikea calls these smaller stores ‘touch points’ for the customer to get an experience before making the purchase. “Currently the decision is to open two city center stores in different parts of Mumbai. There could be more online and offline touchpoints in the future based on the learnings from the market,” Ikea’s top boss in India explained. Been there, done that Similar formats have been tried by other online furniture retailers in India like Pepperfry and Urban Ladder. Pepperfry had launched its first offline studio in 2014. Since then, they have expanded to 65 studios across 28 cities. In fact, in every city that Pepperfry has launched a studio, the sales had doubled, <a href="https://www.businessinsider.in/pepperfry-studio-location-to-increase-50-as-sales-double/articleshow/69859900.cms">according to the management</a>. “While we don’t sell directly through our offline studios, they contribute significantly to our sales. Close to 40% of our overall turnover comes from the online bookings made at these studios,” Mihir Kulkarni, Vice President and Head of Omnichannel expansion, <a href="https://www.businessinsider.in/flipkart-offline-furniture-store-puts-its-in-competition-with-pepperfry-ikea-urbanladder/articleshow/70427696.cms">Pepperfry told Business Insider in an earlier interview</a>. The race is hotting up While both Pepperfry and Urban Ladder may have a headstart, they are going up against a giant in Ikea. The two startups put together have received investments worth less than $300 million in the last six years. On the other hand, “Ikea has committed to invest 1.5 billion euros ($1.68 billion) so far. Three Indian cities are in the fast speed expansion markets namely Mumbai, Bengaluru and Delhi/NCR. Our focus on India will only increase in the future,” according to Betzel. Even Flipkart, India’s largest online retailer, now owned by Walmart, is looking to set up experience centres. It unveiled an <a href="https://www.businessinsider.in/flipkart-offline-furniture-store-puts-its-in-competition-with-pepperfry-ikea-urbanladder/articleshow/70427696.cms">1,800 square feet outlet in Bengaluru</a> on July 29. With the likes of Walmart and Ikea throwing in their hat, running against smaller but more agile and homegrown players like Pepperfry and Urban Ladder, furniture retail in India is certainly set for exciting times. SEE ALSO: <a href="https://www.businessinsider.in/i-visited-ikeas-new-manhattan-location-and-it-was-like-nothing-else-ive-seen-from-the-retailer/articleshow/68821133.cms">I visited Ikea's new Manhattan location - and it was like nothing else I've seen from the retailer</a>

Ikea will make its Mumbai debut ‘very shortly’, says India chief as the first store in Hyderabad turns a year old

The world’s largest furniture retailer has been present in India since the past 42 years with an office in the country since 30 years but it is finally opening a retail store in the country by 2018. The company had employed 135 people till last year and the number has been consistently growing. <keyword id="6371031" type="COMPANY" weightage="20" keywordseo="Ikea">IKEA</keyword> has been mainly sourcing textiles which make up for about 70% of the imports, but also sourcing materials like plastics and metals. “We are looking at different materials such as Mango wood, Rubber wood, Neem wood, and Bamboo in the coming months as it is an optimal material for furniture in India,” Henrik <keyword id="4461399" type="UNKNOWN" weightage="20" keywordseo="gunnerling">Gunnerling</keyword>, Purchase Development Manager, IKEA Range &amp; Supply told Business Insider. According to India’s retailing policy, foreign companies have to meet the 30% local sourcing norm, preferably from <keyword id="44779" type="COMPANY" weightage="20" keywordseo="SMEs">SMEs</keyword>. The Swedish company’s first two stores in India would be in metro cities of Hyderabad and <keyword id="57321" type="PERSON" weightage="20" keywordseo="Navi-Mumbai">Navi Mumbai</keyword>, and both are expected to open in 2018. <div type="embedgroup"> <div type="Article" hostid="261" msid="58292743" title="Exclusive: K. Ganesh Made BigBasket and Portea Medical Blockbusters in India, and This is his Unique Life-story" rank="1.0" kind="RELATED" publishDate="Apr 21, 2017, 12:00 PM" mstype="2" mssubtype="0"></div></div>




 Make In India to Sell In India Gunnerling said that the retailer gives volume commitments to its partners to drive growth in terms of investments and technology.China is the largest sourcing hub for the furniture giant but Gunnerling said that it is possible for that to change over time, as they enter the Indian market next year. Ikea also said that it would double its sourcing from India by 2020 to €600 million, up from its existing base of €318 million, while complying with the 30% local purchase norms as it makes its commercial debut in the Indian economy. The company said it plans to hire 500-700 direct employees for each store. <keyword id="2635043" type="UNKNOWN" weightage="20" keywordseo="Sandeep-Sanan">Sandeep Sanan</keyword>, the new business development manager for <keyword id="2635068" type="UNKNOWN" weightage="20" keywordseo="Ikea-South-Asia">Ikea South Asia</keyword>, said the company is looking to add suppliers to its existing categories, such as textiles and rugs, and plastics and metal. The company also plans to set up its first distribution centre in Pune. 

 

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Sanan said that while the company has been sourcing from India since 4 decades, the entire process has not been easy, “We have a very good Textile supplier base in India; companies that have global standards and they have been exporting out of India. In furniture industry, it has not been the same case. There are very few companies that have set-ups that include modern technology and machinery. The challenging part has been to find the right supplier that meet our standards or even have the right mindset to attain those standards that are people-friendly and environment-friendly.” Sanan also thinks that the local Indian regulations regarding furniture production are outdated and need to be updated, “We are working with the government to reduce chemical emissions created during furniture production as there are no regulations regarding the permissible chemicals being used.” Mr. Sanan says that the company is looking for a long-term collaboration with the suppliers, “Our average time working with suppliers on a global level today is 12 years. We work at skill development, technology transfers and provide any support to make sure that supplier stay with us for the long-term.” 

 

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 “We are looking to cut costs to make products affordable and accessible to many people. We make sure that we can make economically viable products and if that means sourcing more from countries like India, we will do it. Not just for the country market itself but for the entire range across all our 393 and counting stores,” Gunnerling said.

Exclusive: Ikea in India opens shop in 2018 and might source more from India than China for its global operations, if things work out

<img class="gwt-Image" src="/photo/52365100.cms" style="width: 800px; height: 600px;" /> <keyword id="6371031" type="COMPANY" weightage="100" keywordseo="Ikea">IKEA</keyword> will build a 400,000 square feet in Mumbai and has received a land parcel for the same, the Swedish <keyword id="6354386" type="UNKNOWN" weightage="100" keywordseo="Furniture">furniture</keyword> retailer said on Friday. 
 The 23-acre site in <keyword id="57321" type="PERSON" weightage="100" keywordseo="Navi-Mumbai">Navi Mumbai</keyword> is the second land parcel for IKEA in the country with the first being in Hyderabad. 
 "Maharashtra is one of the most important markets for IKEA. Along with setting up retail stores, we will expand our supplier landscape and grow local sourcing as much as possible," <keyword id="1412034" type="UNKNOWN" weightage="100" keywordseo="Juvencio-Maeztu">Juvencio Maeztu</keyword>, chief executive officer at IKEA India told Economic Times. 
 
According to Maeztu, each IKEA store will employ 500-700 workers directly and another 1,500 indirectly, engaged in providing services. "We are committed to having 50% women in our organisation at all levels and giving equal opportunities to all," he said. 
 
IKEA, which received government approval for its Rs 10,500 crore proposal to open fully owned retail stores in the country in 2013, plans to open 25 stores by 2025 in nine Indian cities including Bengaluru, Mumbai and Delhi-NCR. It recently signed a memorandum of understanding with Haryana government and said it will invest an estimated Rs 2,000 crore to open stores in the state. 
 
The company expects its Navi Mumbai store to attract more than 5 million visitors each year once it's operational. 
 
IKEA has been sourcing from India for the last 30 years and it plans to double its sourcing volumes by 2020. Through it 50 suppliers, IKEA today employs 45,000 people directly and about 400,000 in the extended supply chain. It has recently organized three "Make More in India" campaigns, including one in Mumbai to look for new suppliers.

IKEA gets 23,000 acre land in Navi Mumbai, to open 400,00 sqt feet store

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IKEA is a consumer brand that anyone can relate to; it's homely, practical and futuristic which makes it very exciting for India because these are the values that compel us before purchasing anyway. 
 
So, when we heard that IKEA is opening its first store in the country next year, not only were we excited, but extremely curious as well. <keyword id="824043" type="COMPANY" weightage="20" keywordseo="Business-Insider">Business Insider</keyword> met with <keyword id="3922141" type="UNKNOWN" weightage="20" keywordseo="mikael-palmqvist">Mikael Palmqvist</keyword>, APAC Head, IKEA Retail to discuss what’s in store, (literally) at the upcoming IKEA store in Hyderabad. 
 
This is how he began - “We are very excited to open our maiden store in the country after textile- sourcing for about 30 years from here. The size of the store, the functionality of the products would be same, and around 5% of the products will be Indianized for meeting customer’s needs like the ‘tava’, idli maker and the pressure cooker.” 
 
Regulations 
 <keyword id="3922143" type="UNKNOWN" weightage="20" keywordseo="palmqvist">Palmqvist</keyword> emphasizes that IKEA is not a retail company, but a life-at-home company that sells solutions. For him, India is a very important market because not only is every home, room, and activity important, but the sheer size and diversity makes India like a continent for the company. 
 
Palmqvist also says that it took them around 4.5 years to get here but that wasn’t because of the regulations. 
 
He says - ‘’Our stakeholders here have always been supportive; in terms of FDI, e-commerce, and sourcing. Ease of doing business has increased dramatically.’’ 
 
‘Start and adapt’ is IKEA’s motto of the company everywhere, and in India as well. 
 
“We want to understand how the customer accepts IKEA and then go from there. If the customer wants to pay digitally or by cash, we will provide them with options’’ he adds on being asked to comment on the recent demonetization move and its impact on businesses. 
 
Diversity 
 The company also believes in emphasizing on diversity when they hire people and globally they ensure that 50% of the workforce is women. Currently, the company has collaboration with <keyword id="3922144" type="UNKNOWN" weightage="20" keywordseo="national-institution-of-fashion-technology">National Institution of Fashion Technology</keyword> which contributes design aesthetics to their collections. 
 
In terms of future pricing for their products, they claim to be accessible to all, and not just the middle class. They want to be competitive in pricing under ‘’Home furnishing for all’’. 
 
Online store 
 
E-commerce companies like HomeLane, Urbanladder, Pepperfry, Fabfurnish etc. might pose a threat to the Swedish giant, but Palmqvist’response - ‘’We are happy to build up the furnishing market with these players“ – shows the IKEA team is unfazed by the competition. 
 
Their website IKEA.in will be updated with inventory after the store has opened in full swing. 
 
<a href="http://www.businessinsider.in/Bollywood-actor-Kunal-Kapoor-talks-about-Ketto-his-crowdfunding-startup-which-has-raised-Rs-40-Cr-for-social-causes/articleshow/55753955.cms">ALSO READ: EXCLUSIVE - Bollywood actor Kunal Kapoor talks about Ketto, his crowdfunding startup which has raised Rs 40 Cr for social causes</a> 
 
<a href="http://www.businessinsider.in/This-LinkedIn-survey-reveals-that-India-has-the-highest-level-of-sales-and-marketing-collaborations/articleshow/55749887.cms">Feeling inspired by the Indian homes</a> that the IKEA team visited, the company plans to make further investments in the country but over a few years, after more stores have opened. After Hyderabad, the company wants to open in <keyword id="57321" type="PERSON" weightage="20" keywordseo="Navi-Mumbai">Navi Mumbai</keyword> and so on. 
 
Biggest cafes 
 When we asked <keyword id="322364" type="PERSON" weightage="20" keywordseo="Mikael">Mikael</keyword> to tell us how would an Indian feel after entering the first IKEA store, he said, “WOW! I want them to be surprised by how much we know about what they need. It’s smart and affordable.” The company is also planning to open the biggest restaurants in India with 1000 seats, where customers will get to taste typical Swedish delights. 
 
The company seems to<a href="http://www.businessinsider.in/EXCLUSIVE-BigBaskets-co-founder-talks-about-hyperlocal-businesses-and-profitability/articleshow/55752379.cms"> be watching how you live, eat and work to create things</a> that you didn’t even know you needed. We can’t seem to wait to enter the much-hyped store!

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