Ikea to merge its stores in India with online trade

Ikea which is opening its first store in India by 2017, plans to integrate its stores with online trading for its customers

India: Swedish company Ikea, which is on course to open its first store in India by 2017 has also planned to complement its furniture outlets with online trading for the benefit of its customers. The company, which is initially opening its stores in Hyderabad, Mumbai, Bangalore and Delhi NCR. Has also planned to increase its presence in other major cities such as Chennai, Pune, Surat and Ahmedabad.

IKEA has plans to open 25 stores by 2025 in different Indian cities with an aim to offer a wide range of home furnishing products. has started construction of its Hyderabad store and has also bought land in Mumbai as part of its India expansion plan even as it scouts for more sites in Delhi-NCR, and Bangalore. The company has also received the government approval in 2013 for its USD1.6 billion plan to open its retail stores under 100% FDI

According to TechSci Research, the e-commerce industry is in style. The features of shopping online give the freedom to shop easily and also to avail the extra discount. IKEA targets the tier 1 cities as it wants to tap the best markets. The online aggregator business is a very fruitful one as the buyer has the element of easy shopping, wide range of products, home delivery, discounted price, return of purchases etc., with the growth of the e-commerce in the country, the company shows good potential in the future. Since the competitors in the industry are less, so it will be an easy go for IKEA.

According to a recent report published by TechSci Research, “India E-commerce Market Forecast & Opportunities, 2020”, the country’s e-commerce market is projected to grow at a CAGR of more than 36% during 2015-2020. E-services segment, which comprises online travel, online payments, online classifieds, etc., is expected to continue its domination through 2020. However, the e-tail segment that includes electronics, apparels & accessories, health and personal care, etc., is expected to witness significantly higher market growth compared to e-services segment over the next five years. During 2015-20, the western region is expected to remain the largest e-commerce market in the country. Major players operating in India’s e-tail market include Flipkart, Snapdeal and Amazon.