Almhult (Sweden): Swedish home furnishing major IKEA which is all set to open its maiden store in India next year, is mulling a doubling of its Indian sourcing by 2020, to Euro 630 million.
“IKEA mainly sources textile products in India. Over time, we would want to source more products from local suppliers to reach affordability goals and to be profitable. We plan to double Indian sourcing by 2020 to Euro 630 million up from the current Euro 315 million,” Mr Ulf Smedberg, country marketing manager, IKEA India, told a group of journalists from India who had been invited by the company to Sweden.
“We are looking for more suppliers of locally-available material such as banana fibre, coconut fibre. IKEA will be adding categories such as mattresses, sofa covers and work chairs in the local sourcing segment. Other products will be sourced from Europe, China and neighbouring countries,” he said. The India outlet will display country-specific items such as roti makers, idli steamers, pressure cooker and steel utensils.
The Hyderabad store will be one the biggest in the world. A typical IKEA store measures about 3.5 lakh sft (about 7-8 football fields) and offers nearly 9,500 products. Each store employs 400-700 workers directly and 1,000-1,500 indirectly. IKEA Hyderabad will be 4 lakh sft on 13 acres.
There will also be the customary in-store IKEA restaurant — in Hyderabad it can seat 1,000 customers and yes, there will be biryani.
IKEA is considering future technologies to enhance shopping experience. With the help of virtual reality, the firm is helping probable customers plan furniture for a specific layout. “One day, it will be possible to buy stuff using VR,” said Ingrid Franov, corporate communication manager at IKEA Communications AB.
An official said VR shopping could become a reality in five years. IKEA uses a system where customer needs to note down product details and then go to the warehouse (on another floor) and pick the product. IKEA admits it takes getting used to. “Even in Sweden, we get at least five people every day to whom we have explain the system,” said a store manager at their full-range store in Malmo.
IKEA works with state’s farmers
Home furnishing major IKEA is all set to debut in the city in a year, but the company is a familiar name with farmers.
IKEA has been sourcing cotton from India for 30 years. “Last year more than one third, or 36 per cent of 1,40,000 tonnes of cotton products come from India,” said Mr Pramod Singh, category leader, IKEA.
The company is working with farmers from Telangana to develop sustainable cotton. Mr Singh said, “IKEA started its sustainable cotton journey with its first project in Warangal in partnership with WWF-India. Farmers were made aware of better management practices. The project was a learning module and helped in finalising the standards for better cotton.”
“The learning from this project helped in implementing the sustainable cotton farming project in all other cotton provinces such as Punjab, Maharashtra, Gujarat and Madhya Pradesh,” he said. He said the practices were aimed at optimising the use of chemical pesticide, fertilizer and water.
