Can Ikea make it big in India?

Furniture giant Ikea is all set to make its foray into the Indian market, some 12 years after it first tried to enter the South Asian nation. The company’s first facility in the southern city of Hyderabad was initially scheduled for opening on July 19, but the much-awaited launch has now been moved to August 9 due to quality issues.

“Ikea Retail India decided to move the date as it needs some more time to live up to its expected quality commitments towards customers and coworkers,” said Ikea in a statement. “Our main priority is to create an inspiring and safe experience for both customers and coworkers.”

Despite potential customers expressing their disappointment at the delay, Hyderabad is abuzz with excitement for the launch. The debut facility in Hyderabad will comprise a massive 37,000 square meter outlet, complete with a 1,000-seater cafeteria.

The restaurant will be Ikea’s largest and will cater to local tastes, with religious sensitivities in India dictating that beef and pork, staples of Swedish meatballs, will not be served. Instead, the menu will feature local delicacies like samosas and biryani.

Ambitious plans

Ikea has ambitious plans for the Indian market, with the company preparing to invest some $1.5 billion (€1.2 billion) in Asia’s third-largest economy, which has witnessed rapid expansion over the past couple of decades. The Swedish multinational has already spent close to $750 million procuring sites for four stores, including the Hyderabad one.

The outlet in Hyderabad will have 850 employees and is expected to attract several million visitors a year.

Source: dw.com