Ikea, the world’s largest furniture retailer to be inaugurated and made open to piblic in Hyderabad, India on August 09. in order to appeal to to customers, it is cutting prices, offering assembly and selling samosas and gulab jamuns in the store’s cafeteria, which offers seating for 1,000 guests, more than any other Ikea in the world, to accommodate the more leisurely dining style of Indian families.
Six years after it was first planned, the 400,000-square-foot store in Hyderabad is the first step toward fulfilling the Swedish furniture’s ambitions in the country, with more outlets scheduled to debut in Mumbai, Bangalore and Delhi area within the next two years. By 2025, the company hopes to have 25 stores in India, some of them in a new, small format.
Part showroom and part warehouse, they are sprawling outlets that are far from city centers with mazes of giant bins and floor-to-ceiling shelves. Ikea’s brand signals affordable, mass-produced and functional, and its design aesthetic is lightweight and lean, in contrast to the heavier, bulkier furniture traditionally favored in Indian households.
Ikea, with its reputation for good value, also appeals to the bargain-hunting nature of the Indian shopper.
“In India, a lot is driven by the price of the goods and not so much about the quality,” said Anil Talreja, a partner at Deloitte’s India arm who works with retailers.
All of this has forced Ikea to rethink its product lineup and store operations for India. Although the Hyderabad store has the classic Ikea layout, but its display has added an Indian flavour to it.
The store features hundreds of products, from dolls to spice jars, priced at less than 100 rupees, or $1.45. In some cases, Ikea is selling a product in India for less than it charges elsewhere. In other instances, the company is tailoring it for local tastes.
Featured Image: New York Times