Known for its large offline furniture retail outlets, the Sweden-based IKEA hasn’t been the same in India. IKEA, which has the only offline-store in Hyderabad, has been relying much on the business it earns from the online operations in India. Previously launching its online sales in Mumbai, the company has now opened its website for shoppers in Pune.
Currently, users living in Pune can shop from around 7000 products from IKEA’s website. Per Hornell, market and expansion manager at IKEA Pune, said that Maharashtra is a very important market for the company and it sees a lot of potential in Pune.
“Our online shop has over 7000 products of which over 800 products are below INR 200. With our fulfilment centre in Pune’s Chakan, we are well prepared to serve our customers with a shorter delivery time,” Hornell was quoted as saying by Livemint. Besides Pune, the company is also planning to launch fulfilment centres in Delhi and Bengaluru as well.
The launch of Pune’s online store came after the statement of IKEA’s India CEO, Peter Betzel, on the company’s expansion plans in Tier 2 cities. However, he had previously refused to share any details about the cities, the company was planning to enter.
Betzel also said that the company wants to bring IKEA’s offerings through a multichannel approach. Though previously he had said that the company wants to mark its presence through large format stores, small stores and even on the online platform, the Pune launch indicates that the company is now looking to approach India’s market differently.
Besides, large-format stores in Hyderabad and online operations in Mumbai and Pune, the company is also planning to become a household name with a network of small stores in Indian cities.
In India, IKEA launched its first store in Hyderabad in August 2018. So far, the company has invested around $108.6 Mn to set up its 400K sq ft store in Hyderabad. The company has also purchased around 10 acres of land in Gurugram and plans to build another 400K sq ft store with parking space for approximately 1,000 cars. In May 2019, IKEA franchisee has invested in home design startup Livspace as well.