IKEA, whose first store in India in Hyderabad saw near stampede like situation during the first few days of its inauguration in August last year, might not have been able to maintain the momentum during the later months. As a result, now the Swedish furniture maker expects five million footfalls in its outlet at Hyderabad during the first year of its opening against the estimated seven million.
IKEA has also realised that India is a very price sensitive market. Most of the visitors who visited the outlet had come just to have a look at the store and restricted their purchases to lowest priced packs like spoons, etc. Its disappointing beginning notwithstanding, IKEA will be launching a textile collection which will be made in India and will also be inspired by local trend. The textile collection will be named “Anglatarar.”
According to IKEA, its second store will be opened during the current calendar year in Mumbai, though the conpany has not yet announced the date of opening for the store. However, Bangaloreans may not be able to see IKEA store in the Garden City before 2021.
The first India store of IKEA was opened in August last year with an investment of Rs 1,000 crore, five years after it received the government approval in 2013 to invest Rs 10,500 crore to open 25 stores in India by 2025. In the first phase IKEA has plans to open stores in, apart from Hyderabad, Navi Mumbai, Bangalore and Delhi. In the next phase, IKEA would cover Ahmedabad, Surat, Pune, Chennai and Kolkata.