Leading furniture retailer Ikea has introduced doorstep delivery facility in 62 new markets in India, and the company expects online demand to go up in the coming years, the company’s India CEO Susanne Pulverer said.
At present, Ikea India gets around 25 per cent of its sales through online channels. The company will soon launch its Shop By Phone assistance service, she said.
This is part of the approach of the entire Ikea brand evolving towards an omnichannel approach globally, acknowledging the challenges of people having less time and the importance of convenience in their purchasing decisions, said Pulverer.
“It (online sales) is around 25 per cent of our total turnover. We believe there is potential for further growth both in terms of market share and overall sales,” Pulverer told PTI.
The 62 new markets are spread across Maharashtra, Karnataka, Andhra Pradesh, and Telangana, which would be served from its nearby stores.
The nature of Ikea business is such that customers seek touch-and-feel products, which necessitate physical meeting places and stores.
“However, the convenience offered by online channels is expected to continue growing, especially considering people’s busy lives and the challenges of traffic,” the Ikea India CEO said.
Online sales will grow but it will never surpass those from the physical channels, and there will be a mix, she said.
“Some years back, before we came to India, we were debating between 20 per cent and 10 per cent. I am confident that it will be a higher share of the total sales. As we move forward, gradually, it will increase and we will see strong growth in the online segment,” she said.
In the markets where Ikea has the highest share, online share is around 30 plus per cent, according to Pulverer.
“It is at the same level as any other market where we are present in the world,” she added.