Ikea's internet sales in India have more than doubled in the last two years
10 December 2021, Mumbai:
Ikea, a supplier of home goods, textiles, and furniture, has seen its online sales in India more than quadruple in the last two years. Online sales have also risen from roughly 12% of overall sales prior to the pandemic to over 25% of total sales now.
According to TNN, the Swedish company attributes its online sales growth in part to the Covid-19 epidemic, as buyers confined at home focus their energies on beautifying their rooms.
"We've witnessed a 70 percent increase in online sales and online interest all over the world," Peter Betzel, CEO, and CSO of Ikea India told the Times of India. "It accounts for over a third of total turnover... "This is a pattern that will continue."
Ikea has not shifted its focus away from brick-and-mortar retail in the nation, despite rising online sales. In Worli, Mumbai, the brand just built an 'Ikea City Store.' Ikea's City Stores are smaller retail facilities that the company aims to open in a variety of areas to help it reach a wider audience.
"What's also occurred is that we've accelerated our omnichannel strategy in terms of accessibility," Betzel added. Customers can buy goods that are not available in-store online and have them delivered to the smaller locations, which only sell a tiny portion of Ikea's comprehensive product inventory.
Ikea intends to establish a large-format shop and a City Store in Bengaluru in 2022, as well as another City Store in Mumbai. By 2030, the company plans to invest Rs 10,500 crore ($1.6 billion) in its Indian retail operations, with Rs 6,000 crore designated for Maharashtra.
Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.
DAILY NEWS:
