Ikea will launch e-commerce operations in India, beginning with Mumbai, followed by Hyderabad and Pune. Ikea expects the percentage of online sales in India to be significantly higher than anywhere else in the world. Ikea will use its own platform for online sales and not tie up with an independent e-commerce platform. To get the online system on its feet, Ikea will build robust supply chains, distribution centers and seamless process to ship products and take them back in case of exchange or replacements. The Swedish home furnishing retailer is looking at various channels, including smaller formats and customer meeting points. In the coming years, the goal is to meet 100 million customers with its home furnishing offer.
Ikea’s Hyderabad outlet includes an in-house 1000-seater restaurant. The restaurant has served one million each of frozen yoghurt, veggi balls and chicken balls during the past one year. The outlet has over 3.50 lakh Ikea family membership registrations. The Hyderabad store is the first of 25 such outlets planned to be set up in India by 2025. While India is still a small part in Ikea’s scheme of things, the country is seen as having the ability to make a meaningful contribution to revenue as sales in mature markets of Europe are showing signs of stagnation.