The Swedish furniture retailer IKEA is all set to launch its operations in India with the opening of its first retail store in Hyderabad, tomorrow. The 400,000 square feet (37,160 square metre) store in Hyderabad will offer 1,000 products including cutlery, stuffed toys, hangers and container boxes priced under Rs 200, cheaper than in most countries.
A quick check on IKEA’s newly launched India website showed popular products looked cheaper than in the United States. For instance, in India, the white variation of the company’s best-selling Billy bookcase is cheaper by a fifth than in the United States and the dark-grey Ektorp sofa is priced 30 percent lower.
In order to keep its prices low, it is making moves to source at least 30 percent of its raw materials locally within five years of operations in the country as per Indian regulation. IKEA already sources about a fifth of its global supplies from India.
IKEA has set up a 150 member task force to help customers assemble furniture and is also partnering with UrbanClap, an app that connects people with a variety of service providers, including carpenters. UrbanClap charges customers about Rs 250 rupees for a 30-minute carpentry job.
IKEA expects Hyderabad store to draw 5-6 million customers a year. The store will features a 1,000-seater restaurant serving Swedish and Indian cuisine. About 50% of its workforce will be women. It will directly hire 500 employees and provide indirect employment to 1,500 individuals.