The Swedish furnishing giant IKEA is about to inaugurate its new store – IKEA Mumbai this year after having a store in Hyderabad earlier this year, and is planning to open up more stores across India soon.
After Hyderabad, IKEA is about to launch in Mumbai and is expected to start three brand new stores in India by 2020. And by the year 2025, IKEA will be having more than 25 stores across the country – with cities like Chennai, Pune, Ahemdabad on the list. India’s deputy country manager, Mr. Patrik Antoni said, “To put things in perspective, Mumbai has about 22 million population and will have a single store as of now whereas Sweden, with a population of 10 million has 16 stores.” Hence, the Swedish brand is expecting a lot more sale rate in the region, especially with online service option.
IKEA Mumbai plans to develop robust supply chains, distribution centres as well as shipping infrastructure to get their own online system up and running instead of tying up with any independent e-commerce platform. However, online ordering options will be limited to Mumbai for now, and will later be expanded for the nearby areas. To comply huge expansion plans, the furniture giant will be investing a total of Rs,3000 crore in the next three years to open three packing depository in Mumbai, Bengaluru and Delhi.
Also, IKEA believes that it would not raise prices of cheap furniture options available globally, despite the custom duty hikes imposed by the central government since the company is able to bear the load of customs and tax and is not planning to impose any burden upon the customers. However, if they do so in future, it will only raise the prices of high-end furniture rather than the cheaper one. Being a global trading company, any barriers or import duties will ultimately affect the ease of customers than that of the dealers to provide imported products include tableware, kitchenware and household items made of plastic and travel bags, among others – at costs cheaper than others.