The world’s biggest furniture retailer is localizing its offering – from the food menu to its “do-it-yourself” (DIY) assembly model – to ensure success in the country.
Ikea aims to soon open a 400,000 sq ft store in Hyderabad and is setting up its first-ever in-house assembly team and offering local delicacies such as samosas to woo shoppers.
India’s furniture market is largely dominated by unorganized retail and local vendors, and consumers are used to enjoying the comfort of made-to-order or fully assembled furniture delivered to their doorsteps.
The “do-it-for-me” culture is very prevalent in India, said Sowmya Adiraju, an analyst at research firm Euromonitor, adding Ikea would have to look into delivery and assembly needs to woo Indians.
“We believe that we might have more customers eating than buying furniture, but the average ticket size of the food is very small compared to furniture. So most likely, food will be the first contact point for people coming to the Ikea store,” said Patrick Antoni, deputy country manager at Ikea India, which will have a 1,000-seater restaurant in the middle of its upcoming 400,000 square foot store in the southern city of Hyderabad. That would be Ikea’s biggest restaurant globally.