IKEA to cut product prices in India for mass outreach
24th August 2021, Mumbai:
World’s largest furniture retailer IKEA plans to cut product prices in India as it looks to reach more than 200 million customers as well as transform into a more affordable platform. Per Hornell, Market and Expansion Manager, IKEA India says, the lower the prices, the more they expect to sell in the country.
IKEA will focus on efficient sourcing, and transportation solutions. It will cut prices of around four dozen products by around 20 per cent.
IKEA also plans to open its first ‘city-store’ in Mumbai’s Worli area by the end of 2021. Mumbai, Delhi-NCR and Bengaluru are among the priority markets for the furniture giant.
The city store is likely to be a sixth of its regular big-box format stores. Hornell said that city stores are a new retail concept within IKEA globally. They will be able to sell 6,500 products from such stores as compared to 9,000 at their Navi Mumbai store. All of their products will still be available online.
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IKEA has large format stores in Navi Mumbai as well as in Hyderabad. These stores are roughly 500,000 sq ft in area and are located mostly in the outskirts of large cities. The city stores are smaller, and in the 50,000-100,000 sq ft range. It is also looking to open similar stores in Bengaluru and Delhi-NCR.
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