- Mumbai is the first city in the world where IKEA has gone online without a physical store.
- The Indian furniture industry is anticipated to be worth $17 billion over the next three years
- IKEA is set to compete with the likes of Amazon, Flipkart, Pepperfry and Urban Ladder.
Swiss-based multi-channel home furnishings retailer IKEA formally kicked off its online services in Mumbai, India. The online service of IKEA will cover the maximum city regions of Mumbai, Navi Mumbai and Thane.
The internet foray of the Swedish furniture giant in India comes precisely one year after it debuted in Hyderabad with its physical shop. Mumbai is the first city in the world where IKEA has gone online without a physical store.
IKEA India website has a special section for its Mumbai shoppers, providing a broad variety of products. Unlike its online counterparts, however, IKEA would not offer to start with free delivery. Customers would be charged for shipment at least Rs 199, with expenses increasing depending on the product’s weight.
With the launch of IKEA, the other e-commerce firms vying in the furniture space for the online pie has increased in India. The section has already competed with the likes of Amazon, Flipkart, Pepperfry and Urban Ladder.
The market for Indian furniture is worth around $18 billion. However, unbranded players dominate more than 90% of the room. Players such as Urban Ladder, Pepperfry and a host of offline furniture brands are competing for 10 percent for the remainder.
The only difference about Ikea’s entry into Mumbai is not going online first. At least, to begin with, the iconic gargantuan-sized stores, about half a million square feet each, will be absent. “Fifty thousand sq. ft maybe the biggest shops in the places we can find, “said Peter Betzel, Managing Director of India.
Hyderabad and Pune would be the next web stops for IKEA India. According to IKEA, beds and mattresses, toilet, decoration and dining are the most popular product categories in India. Interestingly, in terms of volume sales, Children’s IKEA tops IKEA stores. With over four million visitors to its Hyderabad store, IKEA has seen steady growth in the past year.
The Furniture race is at its peak
While Pepperfry and Urban Ladder may have a head start, in Ikea they’re up against a giant. In the last six years, the two startups have got investments worth less than $300 million. On the other hand,
Ikea has so far committed to investing € 1.5 billion ($1.68 billion). In the rapidly expanding markets, there are three Indian cities, namely Mumbai, Bengaluru and Delhi / NCR. In the future, our focus on India will only boost, “Betzel said.
The Indian furniture industry is anticipated to be worth $17 billion over the next three years, but the large stores, malls and snazzy online retailers with discounts and offers selling less than two in every ten pieces of furniture purchased in India. The trend is evolving, particularly in metropolitan regions, and the organized segment has enough headspace for development.