IKEA arrives in India, finally – First IKEA store opens in Hyderabad
Today is the 9th of August – the day when the global furnishing retailer brand IKEA sets its foot in India market, for good. IKEA opens it’s the first store in the country that houses almost 20% of the global population.
The entire campaign before the launch – from creating it’s very first tv commercial to the VR campaign in Hyderabad, the team behind the brand has been able to create a buzz in the country, very successfully.
IKEA is very well known for disrupting the home furnishing & products market by providing affordable DIY products in the broadest range possible. It houses tens of thousand products under one roof, offering a great experience to the buyers who visit the stores. Hyderabad store is no exception to that as it is stated to be spread across a whopping 13 acres of land (more than 500k square feet)!
The store houses:
- Two full-blown houses with different room sets (Bedroom, Kitchen, Living room, etc.) to exhibit Indian Lifestyle.
- Trademark furniture items
- Kitchen utensils, accessories, rugs, live plants, stationary and much more.
- A 1000 seater restaurant (that certainly is going to be a hit with Indians)
- Smaland – a kid’s play area for parents to leave their kids and enjoy shopping (makes good sense)
As published by a daily, the IKEA store employs 950 co-workers with 50 percent women employee in Hyderabad directly and 1,500 indirectly in services and expects to host close to 7 million visitors each year.
Though it didn’t happen overnight for IKEA as the team has been planning it since 2013 when a Marie Lundström, it’s top executive came to India to study the market, mindset, and aesthetics.
The meticulous study, surveys, interviews about the preferences of Indians led to many revelations for IKEA, which helped in customizing the product range for the market.
Ironically, it also was revealed that Indians (a majority) are not big fans of the whole Do-It-Yourself concept – which eventually is one of the USPs of IKEA. Can it be inferred that Indians are lazy – maybe yes! It also can be attributed to the availability of cheap labor, which kills the need to do things yourself!
This is not the only challenge facing the Swedish manufacturer as it plans to open stores in more than 40 cities across India in coming years. To build a store of the size of probably the biggest malls in cities will pose issues related to the availability of land, which will push the store to the outskirts of the cities or the size of the store will shrink. Both do not seem very encouraging for the brand.
In all this, the thing that stands out for IKEA launch is the marketing strategy of the brand creating fantastic engagement across the platforms. We have witnessed some very exciting things in the past few days.
Check these out:
So, finally, Indians will get to experience world-class quality at an affordable price as IKEAS has been aggressive in its pricing by offering 1,000 of the total 7,500 SKUs priced under Rs 200 and 500 of them below Rs 100.
Happy buying to all the shoppers and good luck to IKEA for its journey in India.
Stat Fact:There are currently 403 IKEA stores in 49 countries with a sales volume of 38.3 billion euros. As many as 936 million customers visited IKEA stores in FY17, and more than 2.3 billion people visited IKEA online.
Share your thoughts, observations or any other input on the topic – in comments.