Ikea opened in India after 12 years

Ikea opened a 400,000 sq ft store in southern India yesterday, the culmination of a 12-year struggle to set up shop in a market which it sees as one of the most promising growth opportunities. Ikea is investing $1.5 billion to develop a retail business in India, where it will woo cost-conscious consumers with its sofas, beds and bookshelves, along with India-targeted products such as brightly coloured textiles, a selection of pressure cookers, and spice jars. Its first Indian store is in Hyderabad’s Hitec City, where tech groups such as Amazon, Google, Oracle and Microsoft have premises employing hundreds of thousands, and where many blocks of flats are under construction to house the urban migrants… The company, with its global supply chain, must comply with local sourcing requirements which mandate that within five years, 30 per cent of all goods sold in its Indian stores be made in the country… Ikea applied to set up shop in India in 2006, but gave up three years later. It reapplied in 2012 after New Delhi agreed to allow full foreign ownership of “single-brand retail” business. Ikea aims to expand into other cities, with work under way on stores on the peripheries of Mumbai, Delhi and Bangalore.

 

Amy Kazmin

 

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