IKEA TO OPEN FIRST INDIA OUTLET IN JULY
But Swedish meatball, arguably its most famous item, is off the menu
FURNITURE giant IKEA is set to open its first store and restaurant in India after years of trying but arguably its most famous item is off the menu — Swedish meatballs.
IKEA, the world’s biggest furniture retailer, will next month cut the ribbon on a massive outlet in the southern city of Hyderabad, complete with a 1,000seater cafeteria.
The restaurant will be IKEA’s largest and will cater to local tastes, with religious sensitivities in India dictating that beef and pork, staples of Swedish meatballs, will not be served.
“There will be chicken meatballs and vegetarian balls,” said Patrik Antoni, IKEA’s deputy country manager for India, during an interview, here.
“Fifty per cent of the food will be Swedish inspired, salmon and shrimp dishes and so on. We’ll also have quite a few Indian dishes like dal makhani, biryani, samosas,” he added.
The Swedish multinational, which revolutionised household furnishings with its range of affordable ready-to-assemble products, is betting big on India as it seeks new revenues away from its key Western markets.
The firm plans to invest US$1.5 billion (RM6.02 billion) in Asia’s third-largest economy as it seeks to lure price-sensitive Indians away from satisfying their furniture needs at local, family-run shops.
IKEA has spent close to US$750 million procuring sites for four stores, including the Hyderabad, which will open next month on a date that is yet to be announced.
Outlets here, Bangalore and the capital New Delhi would follow, said Antoni, without putting a timescale on them. He added that IKEA would then look at Pune, Chennai, Ahmedabad, Surat and Kolkata.
“We are very bullish and excited about the Indian market. Normally, we would test a market by opening one store but in India, we are going all out and expanding,” said Antoni.
At 37,160 sq m, the Hyderabad store will be comparable in size to an average Indian shopping mall. It will have 850 employees and is expected to attract several million visitors a year.
Other than its wide range of international items, IKEA will also sell goods uniquely suited to the Indian market.
Alongside its popular Billy bookcases and Poang chairs, IKEA will also offer spice boxes and kitchen appliances to make traditional Indian staples such as idlis (rice cakes). More than 1,000 products priced under 200 rupees (RM11.79) will be on sale.
The Swedish company hopes its walk-in stores and famed restaurant will be a unique selling point as it goes up against popular Indian online furniture retailers Pepperfry and Urban Ladder.
IKEA hopes access to India’s growing middle class in the country of 1.25 billion people will open up new revenue streams.