The COVID-19 is taking toll on investment plans of several companies and even Swedish furniture major, IKEA, is not spared from the pandemic. The COVID-19 pandemic has not only slowed down IKEA’s expansion plans in India but also has forced the company to tweak the business plans to suit the new norms arising out of pandemic spread. With the changing consumer behaviour due to the health crisis, online business will play a very important role for IKEA, which plans to expand in India with an omni-channel approach.
However, India continues to be one of its “very important markets”, according to company’s India CEO Peter Betzel. Meanwhile, IKEA will open its Mumbai store in next half year or so. According to Beztel “Bengaluru, Mumbai, Delhi are among the prioritised cities for Ingka Group for fast expansion.” Ingka handles the global retail operation for IKEA, which has a target to reach 100 million people in India by 2022 through an omni-channel approach.
IKEA, which received government approval in 2013 for its Rs 10,500-crore proposal to open retail stores under 100 per cent FDI, has signed MoUs with Karnataka, Telangana, Maharashtra, Uttar Pradesh and Haryana to open retail stores. The company is planning to open 25 stores by 2025 in nine cities.
During lockdown, IKEA had introduced ”Click and Collect” contactless and safe shopping in Hyderabad. Now more people are shopping online for all the things they need for their homes. Besides, IKEA has introduced online consultations/planning services for kitchen, office furniture, wardrobe etc.
IKEA India, part of Ingka Group opened its first retail store in Hyderabad in August 2018, followed by online stores in Mumbai, Hyderabad and Pune in 2019 as part of its multichannel approach.