Ikea India focuses on tier-2 cities as it targets growth
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Ikea India is set to expand into tier-II cities in the second phase of its development after early success in key markets.
The Swedish-headquartered furniture-and-homewares giant has established its presence in Hyderabad and Mumbai and is now working on building a large-format outlet in Bengaluru before moving on to Delhi.
“We want to bring our offering through multi-channel approach,” said Ikea India CEO Peter Betzel. “We want to be present through large format stores, small stores and even on the online platform.”
The planned stores will be wholly owned by Ikea and will work to ensure half of its workforce are women. They will be smaller in size but otherwise functionally similar to its large-format stores in the territory.
Questions & Answers
Q.Which cities has Ikea India already established a presence in?
Which cities has Ikea India already established a presence in?
Ikea India has successfully established its presence in the cities of Hyderabad and Mumbai. The company is currently working on developing a large-format outlet in Bengaluru as part of its ongoing expansion plans.
Q.What is Ikea India's multi-channel strategy for growth?
What is Ikea India's multi-channel strategy for growth?
Ikea India plans to expand its offering through a multi-channel approach. This includes operating large-format stores, introducing smaller store formats, and developing an online platform to reach more customers across the region.
Q.Will the new stores in tier-II cities differ from existing large-format stores?
Will the new stores in tier-II cities differ from existing large-format stores?
The planned stores in tier-II cities will be smaller in size compared to existing large-format outlets. However, they are described as being functionally similar to the larger stores, maintaining the brand's core offering.
Q.What commitment has Ikea India made regarding its workforce for the new stores?
What commitment has Ikea India made regarding its workforce for the new stores?
Ikea India has made a commitment to ensure that half of its workforce in the new planned stores will be women. This is part of the company's broader strategy for its expansion into new territories.
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