How does Ikea's Peter Betzel plan to expand and invest in India?

Peter Betzel, CEO & CSO, Ikea India
 
 Q1: Now that you have opened your first city store in India, will you be more aggressive with your expansion plans in order to be closer to your customers?
Ans:
>Ikea’s first city store in India opened in Worli, Mumbai
>Mumbai store is part of Ikea’s accessibility strategy
>Company aims to be an omnichannel retailer
>Ikea’s online in Bengaluru, Hyderabad, Pune, Mumbai and three cities in Gujarat
>First small-format Mumbai store aimed at reaching closer to customers
>Ikea’s next big store coming up in Bengaluru
>Exploring online opportunities in tier-II and tier-III cities of India
 

Q2: What is the product assortment available at the city store compared to your big box store in Hyderabad and Mumbai?
Ans:
>City stores have immediate takeaways, with around 2,000 articles
>Articles available for bedroom, kitchen, living room, children range, storage etc
>Customer gets to plan their entire home or individual rooms
 

Q4: Have you increased your sourcing from India even for your global market, considering that demand for home furnishing going up?
Ans:
>Increasing local sourcing
>Opening new categories for India, like mattresses
>Exploring sofa and other product categories from India
>Sourcing 2,000 articles locally for the Indian market
>Procurements only from sustainable sources
 
 
Q5: Now that people are confined more at home, what is the demand you have seen from your stores as well as online? Also, can you give us the split of the extent of revenue that online contributes to your overall revenue in India?
Ans:
>Online purchases and services are increasing in India
>Virtual planning and video consulting for home furnishing
>Online sales increased by 70% globally
>Contribution of online sales increased from 10-12% to around 30% in India
 

Q6: You had announced an investment of Rs 10,500 crores, out of which Rs 6,000 crores will go to Maharashtra. Can you elaborate on where this amount promised towards investment in India will go? 
Ans:
>Rs 10,500 crores allocated for key retail investment alone
> Investments in Hyderabad, Mumbai, fulfilment units in Pune, first big store in Bengaluru and mixed-use projects
>Additional investments in upcoming global business office and digital hub in India
 

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