Ikea Hyderabad store open: World’s biggest furniture giant Ikea has launched its first store in India today. From its Rs 1,000 crore investment, to the 4 lakh square foot showroom, we take a look at five mind-bogging numbers.
Ikea Hyderabad store open: World’s biggest furniture giant Ikea has inaugurated its first store in India today. After a long wait, IKEA finally opened its first store in Hyderabad on Thursday, more than five years after it received the government’s nod for 100% FDI in India in single-brand retail.
IKEA Group CEO Jesper Brodin said that the firm has a long term commitment to India, which is an important market for it, adding that opening of the first store in India marks a milestone in the company’s journey in India, which began over three decades ago through sourcing of products.
The store in Hyderabad is the first of 25 stores Ikea plans to open across India by 2025. IKEA plans to open stores in Mumbai next year in 2019, followed by Bengaluru and Gurugram. Other cities that IKEA is looking to expand to are Ahmedabad, Surat, Pune, Chennai, and Kolkata. Even as Ikea plans it’s big India foray, we take a look at 5 mind-boggling numbers connected with the launch.
Ikea’s mammoth investment
Out of the total investment of Rs 10,500 crore for India operations, Ikea has so far invested Rs 4,500 crore in its various projects in India. It has invested Rs 1,000 crore on the Hyderabad store alone. Ikea looks to expand in the country faster than it would usually do elsewhere, said the firm, adding that it would accelerate investments. Ikea is mainly counting on new customers in developing countries, even as it faces heightened competition from Jeff Bezos-run Amazon.com. Ikea’s first retail outlet is located at IKEA HITEC City in the Raidurg suburb of Rangareddy district in India’s fourth largest city of Hyderabad.
Massive plot and showroom
The massive store is spread across 13 acres and has a built-up area of 4 lakh square feet. For perspective, the High Street Phoenix Mall in Lower Parel (Mumbai) is spread across 3.3 lakh square foot, while GIP mall in Noida has an area of 9.47 lakh square ft. The giant 400,000-square-foot showroom contains about 7,500 products, of which about 1,000 will sell for less than Rs 200 per item. The store will be open from 10 am to 11 pm daily, according to the details available on the company’s website.
A sea of customers
More than 6 lakh customers are expected to throng the Ikea store today, according to a Bloomberg report. Ikea is mainly targeting India’s burgeoning middle class. India is poised to overtake the U.S. to become the world’s second-largest middle-class market by 2022, said Bloomberg. According to a report by Euromonitor International. homewares and home furnishings sales will is slated to reach $15.3 billion from $12.9 billion last year.
A 1,000-seater restaurant
The furniture behemoth will also launch a 1,000-seater restaurant, which will have both Indian and Swedish cuisines, including biryani and meatballs, at attractive prices. According to the details, the restaurant will remain open daily from 9:30 am to 10:30 pm.
How huge is Ikea
With a presence in more than 49 countries Ikea has opened 403 stores in 49 markets (as of August 2017). Ikea stores garnered a total of 936 million customers in the year 2017 alone. In India, the company, which has employed 950 people directly and another 1,500 indirectly at its store in Hyderabad, plans to hire 15,000 in the coming years as it expands operations in the country.