Will IKEA win over Indian hearts?

It took 12 years, but IKEA has finally opened its first store in India in Hyderabad. The Swedish furniture maker is known for its affordable and aesthetic designs worldwide. But will DIY work in India?  A country known for hiring carpenters and electricians to fix the smallest problems, residents in India like people doing things for them. To solve that problem, IKEA is offering assemblage solutions to buyers. They’ve tied up with an online furniture store, UrbanClap to help shoppers assemble their furniture. They will also hire 150 in-house assemblers to help customers.

The world’s largest furniture retailer expects its restaurant business to drive higher footfalls at its stores in India, a sharp contrast to other markets where customers flock in to buy its popular ready-to-assemble products. Globally, food accounts for 5% to 10% of Ikea’s sales and this could be significantly higher in India. Follow Spotlife Asia for the latest news and updates.

IKEA’s sprawling 4,00,000 sq ft store filled with furniture and knick-knacks which have its trademark Scandinavian design at a very competitive price is giving cold feet to the Nampally furniture market in Hyderabad, according to reports. The Nampally market produces second-hand furniture, and whether or not their clientele will shift to IKEA is unsure. But IKEA has priced many products as low as Rs 200 to attract the thrifty Indian buyer. Interestingly, IKEA will be sourcing 20% of their products from local vendors but they haven’t yet announced which products these are. Also, in the decade it took IKEA to enter the Indian market, quite a few startups today offer quirky designs and at home delivery for furniture – such as Urban Ladder, Not So Shabby and others.

The Ikea India CEO Peter Betzel also said that India has a population of nearly 500 million in the age group of 25-35 years, which is IKEA’s target audience. The company is spending $1.5 billion in India but analysts reckon it is going to be several years before the company with a presence in 49 countries starts seeing significant returns on that investment. Ikea will offer more than 1,000 products under Rs 200 ($2.91) but experts say it faces a difficult balancing act between setting prices low enough to attract cost-sensitive consumers but high enough to reel in the status-conscious rich.