Swedish furniture giant IKEA has invested heavily in India, but with its newest store in Mumbai, the company is taking a more unique approach to attracting customers: a touch of “local” flavor.
The company’s Mumbai store sells cookware and spice jars in addition to the usual inventory of products to attract customers Financial Times Report.
In addition, the store’s restaurant, which seats 1,000, has a mix of Swedish and Indian foods on the menu, from meatballs to chicken curry to biriyani.
But the company isn’t done yet. The aim is to open two more branches in Mumbai in 2021 and also to expand to Bengaluru and New Delhi.
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“Our priority is always to establish IKEA with an IKEA store and then develop more stores and online deliveries,” said Juvencio Maeztu, Deputy General Manager of Ingka Group. “The more we develop these large clusters in India, the more we can expand.”
The Indian retail market is valued at $ 850 billion, the report said. While most Indians buy furniture from artisans or local markets, the pandemic has opened the door to well-funded brands like IKEA.
The company is also betting that physical stores will remain important even as online sales market share has increased amid the pandemic and the lockdown that followed.
IKEA is also looking to improve its domestic supply chain to source more products locally.