Swedish home furnishing retailer IKEA on Thursday said the company is investing around `1,000 crore for opening its second store in Navi Mumbai. “The new store is expected to be operational by early 2019,” said Juvencio Maeztu, chief executive officer, IKEA India. The company’s first store in the country will be opened at Hyderabad and is expected to be operational by 2018. The furniture retailer will have 25 stores operational in the country by 2025. “We are scouting for land in Delhi, NCR, Bangalore, Karnataka among others.
Getting land is difficult but we are hopeful of meeting our target of 25 stores by 2025,” Maeztu said adding the company has been sourcing material from the country for the last 30 years for its global stores and at present it stands at around 315 million euro which is expected to double to around 630 million Euro by 2020. The company’s focus is to cater to the middle class and keep the price points affordable and economical.
“Apart from wood we are also looking to source material locally from India, which are easily available in the country like jute and bamboo to make the products affordable and focusing on creating room settings wherein customers can walk in and decide what their room should look like and get the exact fittings done. The size of the room fittings that will be available in the stores will be different for each city like in Mumbai it will be smaller in size compared to Delhi and Bangalore where people have larger rooms,” Maeztu said.
Experts believe that with the focus on affordable housing and many youngsters purchasing their first homes, demand for affordable furniture is likely to go up. Rajat Wahi, ex-head of retail and consumer, KPMG, said, “There are not many affordable options available in the branded furniture space and mostly the furniture available in our country are bulky and heavy.
IKEA is expected to fill up the gap and with government’s focus on affordable housing it will augur well for the retailer.” The IKEA store, located near the Turbhe station, Navi Mumbai, is spread across 430,000 sq ft area. The store is the result of the MoU signed earlier by IKEA and government of Maharashtra as a major step towards establishing retail stores in the state.