Hyderabad bangs open the door to IKEA’s first store in India
Hyderabad bangs open the door to IKEA's first store in India
Hyderabad: Over a decade after floating its India plan, IKEA on Thursday finally opened doors to a 4,00,000 square foot store in Hyderabad and it had been a crazy affair for residents on the opening day as there was a stampede-like situation at the newly open store which has 1,000 items, including cutlery and toys for less than Rs 200.
A video of the crowd has surfaced the internet where a massive crowd can be seen rushing into the store.
The nearby roads also witnessed massive traffic jam as the residents headed to the IKEA story to grab deals.
IKEA’s newly launched India website shows that the popular products looked cheaper than in the United States. The challenge for Ikea is that India has higher taxes on imported goods, therefore the retail price rises but the shoppers is cost-conscious and looks for ‘deals’.
Ikea’s Warehouse in the Hyderabad, the first store in India
Its opening, set for July 19, was postponed by three weeks to give the store more time to “live up to its expected quality commitments towards customers and coworkers,” according to a statement.
India’s FDI in single-brand retail regulation dictates Ikea must source at least 30% of materials locally within five years of starting operation.
Ikea said on Wednesday it has spent half the Rs 10,500 earmarked for India investment and plans to spend Rs 1000 crore set up each.