IKEA's multifaceted India approach includes setting up Lykli or ‘meeting places’
From furniture giant to community hub, IKEA is reimagining the retail landscape in India with its ‘Lykli’ brand, signalling a significant shift in the company's strategy and investment approach. The Swedish furniture giant is not just setting up stores in India; it's building an entire ecosystems. Moving beyond its traditional big-box stores, the company, through its Ingka centres, is investing heavily in creating ‘meeting places’ or vibrant hubs that combine retail, dining, entertainment, and community spaces. This strategy is evident in their latest announcement: a Rs 5,500 crore investment in a second ‘Lykli’ or branded ‘meeting place’ in Noida.
Lykli, more than just shopping
Lykli, a concept developed by Ingka Centres (part of the Ingka Group, which also owns IKEA Retail), reimagines the traditional shopping mall as a vibrant community hub. Lykli, is derived from the Swedish word for ‘happy’ that embodies IKEA's vision for these spaces. These ‘meeting places’ will offer a mix of experiences.
The Noida project, slated to open in a few years, follows the announcement of Lykli Gurugram, a €400 million (around Rs 3,500 crore) investment. Both locations will feature an IKEA store as an anchor offering the familiar range of affordable and well-designed furniture and home furnishings. There will be a curated selection of both international and local brands catering to various needs and tastes.
What’s more it also has a restaurant that offers diverse dining options, from quick bites to fine dining experiences. Then there are co-working spaces for professionals and entertainment options for families and spaces for events, exhibitions, and activities that celebrate local culture and community.
Spread across 47,833 sq. mt the Lykli in Noida, will be one of the largest retail projects in the Delhi NCR region. It is expected to generate over 9,000 jobs and aims at over 25 million visitors annually.
Besides Lykli, IKEA is now has a multi-format approach in India. It has large-format stores currently operational in Hyderabad, Navi Mumbai, and Bengaluru. Then there are city stores that are smaller in size but focused on specific product categories and services, like the one in Mumbai. IKEA also has an online presence in India this is to rapidly to reach customers beyond physical store locations.
A new era of retail
Lykli showcases a significant evolution in IKEA's approach to retail, moving beyond just selling furniture to creating holistic destinations that foster community interaction and cater to the evolving needs of urban residents. This strategy aligns with the growing trend of mixed-use developments that combine retail, entertainment, and community spaces. While Lykli is a new concept in India, Ingka Centres has a proven track record of developing successful meeting places globally.
IKEA has already tested this concept in other places. For example Livat located in Hammersmith, London is a meeting place that revitalized a previously declining shopping center by adding a cinema, a library, and community spaces. Wuhan Livat in China features a rooftop farm, promoting sustainable practices and engaging the local community.
With the Lykli projects and its multi-format strategy, IKEA is aiming to be a significant player in India's retail sector. By creating spaces that resonate with local communities and prioritize sustainability, the company is not just selling furniture; it's building lasting relationships with Indian consumers.
