Ikea assembles an Indian vision
Parina Lamba, 4, knew what she wanted in the new Ikea store here, the first by the Swedish retail giant in India. She hopped onto a daybed on the showroom floor, lay down and would not get off.
“She didn’t sit on any other bed,” said Parina’s father, Sarav Lamba, one of about 7,000 people to get early access to Ikea’s store a few days before Thursday’s grand opening.
Lamba was sold. The Hemnes bed was like none other he had seen in Hyderabad, featuring a pullout tray that allowed it to become a double bed — perfect for when Parina’s grandmother came to visit, he said. At 39,970 rupees, or $582 (U.S.), with two mattresses, the price was fair, he added. And as an engineer, he was looking forward to putting it together with his daughter’s help. “I love DIY,” he said.
Ikea, the world’s largest furniture retailer, is betting that millions of middle- and upper-class Indians are similar to the Lambas. Six years after it was first planned, the 400,000-square-foot store in Hyderabad is the first step toward fulfilling Ikea’s ambitions in the country, with more outlets scheduled to debut in Mumbai, Bangalore and the Delhi area in the next two years. By 2025, the company hopes to have 25 stores in India.
Ikea’s opening in India — and its subsequent success or failure — is likely to become a case study for other international retailers.
India’s retail landscape is complex. With a growing middle class, its1.3 billion people buy about $30 billion a year of furniture, lighting and household items like bed linens and cookware, according to Technopak, an Indian consulting firm.
But despite the efforts of a few local chains, 95 per cent of those goods are sold through small shops that offer custom-built products, usually specializing in one category.
“The consumer in India is kind of pampered,” said Ankur Bisen, who heads Technopak’s retail and consumer products division.
Although the Hyderabad store has the classic Ikea layout, what’s on display is somewhat different.
Ikea employees visited about 1,000 homes to understand how people lived and what they needed. Indian families spend a lot of time together, so the company added more folding chairs and stools.
Indian women are also shorter than Europeans and Americans, so the company decided to showcase some cabinets and countertops at lower heights. And with children often sleeping in the same room as their parents until they are in elementary school, its model bedroom squeezes in a child’s bed amid all the other furniture.
The cafeteria has biryani, samosas and vegetarian Swedish meatballs on the menu and 1,000 available seats, more than any other Ikea in the world, to accommodate the dining style of Indian families.
“We want to be as relevant as possible,” said Nick Elliott, an Australian who heads interior design for Ikea’s Hyderabad store.