IKEA, the Swedish home furnishing retailer, intends to open three stores in Mumbai. This would consist of a flagship store in Navi Mumbai along with two smaller outlets. The company plans to recruit around 1,000 people, mainly for the Navi Mumbai store, which is planned to open within a year.
Ms. Jaxa Gohil, Store Manager, IKEA India, said India is massively significant for IKEA globally, adding that it is witnessing the company’s biggest expansion plans among new markets. IKEA is investing €1.5 billion (Rs 117.96 billion) in India.
IKEA has identified Mumbai, Delhi and Bengaluru as cities that have potential and opportunities.
It also intends to expand through e-commerce channels for Bengaluru and Delhi soon and has started a pilot for e-commerce in Pune.
In August, IKEA started its e-commerce channel for Mumbai and has garnered 2 million visits so far, said Ms. Gohil. E-commerce for Hyderabad was also started, where it opened its only physical store in India in 2018.
IKEA is definite about 50% of employees being women, as well as adapting the offering for India with a focus on affordability and sustainability.
As a global iconic brand, IKEA has chosen the right cities to launch into India, but could focus more on tier two cities too.