IKEA COMES TO HYDERABAD
IKEA makes its foray into the Indian market with a 400,000-square feet large ‘home entertainment centre’ in Hyderabad. The company has brought land parcels Hyderabad, Mumbai, Bengaluru and
Delhi. Going forward, the second store will open in Mumbai in 2019. Looking ahead, more cities will be added including Pune, Surat, Ahmedabad, Chennai and Kolkata.
Hinting at IKEA’S sourcing strategy Patrik Antoni, Deputy Country Manager, IKEA India says, “Globally India stands at 3 per cent of the total IKEA sourcing which constitutes €350 million worth of resource. We are sourcing from 55 countries around the world. In Europe, around 60 per cent of the sourcing comes from the same market. In China, we source 70 odd per cent of the resources. In India we will source may be 5-6 per cent locally and that number is about to grow more than 30 per cent. Overall, we have around 9,500 products but currently make only 200 of them in India and we have to increase it. For us, manufacturing of our furniture is based on global competitiveness and India as a market at the moment is not big enough to have a manufacturing factory.”