- Ikea hopes to win over India’s growing consumer class with its clean, air-conditioned stores and unique offerings
- It says India is a test case for whether to keep shifting resources toward emerging economies
HYDERABAD, India: Swedish giant Ikea is tackling the $40 billion Indian market for home furnishings, taking on local furniture makers in places like Hyderabad’s bustling Nampally market.
Ikea hopes to win over India’s growing consumer class with its clean, air-conditioned stores and unique offerings. It says India is a test case for whether to keep shifting resources toward emerging economies, including Latin America and China, given the saturation of markets in Europe and the United States — and the possibility of another global recession.
Six months after its first store opened in Hyderabad, Ikea’s 400,000-square-foot cornucopia of furniture, kitchenware and other goodies is drawing between 10,000 and 30,000 visitors.
But it’s unclear if all that foot traffic translates to big sales. So far the best sellers are priced below 300 rupees ($4.20).