Leading furniture giant Ikea has expanded its doorstep delivery service to 62 new markets in India, and CEO Susanne Pulverer stated that the business anticipates an increase in online demand in the upcoming years. Currently, online channels account for around 25% of Ikea India's sales. The company will shortly introduce its Shop By Phone assistance service.
This is a component of Ikea's broader strategy to transition to an omnichannel model globally, recognizing the difficulties posed by people's time constraints and the significance of convenience in consumer choices.
Image Source: IKEA
IKEA’s CEO Statement
“About 25% of our entire revenue comes from online sales. In terms of overall sales as well as market share, we think there is room for more growth," Pulverer told PTI.
The 62 new marketplaces are distributed across Maharashtra, Karnataka, Andhra Pradesh, and Telangana, and will be served by adjacent stores. Because of the nature of the Ikea brand, shoppers are drawn to touch-and-feel products, which calls for physical meeting spaces and storefronts.
Nonetheless, the CEO of Ikea India stated that the convenience provided by online channels is anticipated to keep increasing, particularly in light of people's hectic schedules and the difficulties associated with traffic.
"We were debating between 20% and 10% a few years ago, before coming to India. I do not doubt that it will represent a larger portion of overall sales. The CEO of Ikea stated, "Going forward, we will see strong growth in the online segment and it will gradually increase." In the markets where Ikea has the largest market share, online sales account for 30 percent or more.
Image Source: India Today
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