IKEA to start e-commerce operations next year, may begin with Mumbai

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IKEA
Source: moneycontrol.com

Betzel has said that India could outshine global average e-commerce sales. IKEA is set to open its operations in India in Hyderabad on July 19, six years after it announced its foray.

IKEA is planning to start e-commerce operations from Mumbai next year, Betzel told the media in Hyderabad on Wednesday, adding that the company is seeking to learn from multi-channel sales push.

With rapid digitalisation in India, IKEA is expecting to see its e-commerce sales in the country significantly overtake the global average of around 8-10 percent, the report quoted Betzel as saying.

“We are also looking at opening multiple small format stores of 1,000-5,000 square meters each in bigger cities like Mumbai for having more touch points. Simultaneously, we will open online shopping operations from Mumbai next year and spread to other cities,” Betzel said, according to the report.

The plan is to offer online sales in cities where it can support delivery and assembling services.

The company sees a potential of having a brick and mortar presence in at least 49 Indian cities with a population of more than one million each, over the years, the report adds.

“After Hyderabad, we will open stores in Mumbai, Bengaluru, Delhi, Ahmedabad, Pune, Chennai and others. We are curious to try multi-channel sales — large format, small format, with store, without store online,” Betzel added.

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