Swedish home furnishings giant IKEA is set to launch e-commerce operations in the Delhi-NCR region nearly seven years after making its India debut. The company has partnered with Germany-based Rhenus Logistics to facilitate online deliveries through its 1.5 lakh square foot warehouse in Gurugram. This move marks a significant step in IKEA’s expansion strategy, enhancing its reach in one of India’s largest metropolitan markets.
Current operations and upcoming expansion
IKEA is active in four Indian states: Andhra Pradesh, Karnataka, Maharashtra, and Telangana. It has stores in Hyderabad, Bengaluru, Mumbai, and Navi Mumbai. Soon, it will sell online in Delhi-NCR and open two new stores in Gurugram and Noida, boosting its reach in north India. IKEA has not said anything about these changes.
E-commerce driving growth in India
E-commerce is key for IKEA in India, accounting for about 30% of sales. In June 2024, IKEA teamed up with Rhenus Logistics to improve its supply chain. This will help with home deliveries in Delhi-NCR by early 2025. Rhenus is good at ensuring that products reach customers within 24 hours of ordering.
Why Delhi-NCR is a key market for IKEA
Delhi-NCR is a key market for IKEA. It has a large population, high incomes, and a strong need for modern home goods. This area is one of the fastest-growing in India, with many new homes being built in Gurugram and Noida. This rise has led to a stronger demand for quality home items, making it smart for IKEA to enter this market. With many young workers and small families, the need for nice and useful furniture is growing.
IKEA’s upcoming stores in Gurugram and Noida
IKEA plans to open its Gurugram store soon, which will be 4 lakh square feet and feature a restaurant with 1,000 seats serving Indian and Swedish food. The Noida store is also in the works, and Uttar Pradesh’s Chief Minister Yogi Adityanath laid the first brick in September last year.
By combining online and offline sales, IKEA wants to meet the needs of India’s changing shoppers and share its unique Scandinavian designs and low-cost home goods with more people.
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