Swedish home furnishing retailer IKEA, which has been planning its foray into India for over the last five years, on Wednesday opened IKEA Hej Home at Hyderabad, where its first store is expected to come up early next year. A marketing tool to inform people about the IKEA brand, the Hej Home will provide a sneak peek of the retailer’s products to customers in run up to the store’s launch.
Set up at an investment of 100,000 euros at Hyderabad, the 3,000 square feet Hej Home will be open till the store commences operations in six months, IKEA India’s Country Marketing Manager Ulf Smedberg told The Indian Express.
“The first such experiential home was experimented at Seoul in South Korea, where we saw that before the store was opened, barely 12 per cent of the people there knew about the IKEA brand, which increased to 98 per cent after the Hej Home was commenced,” Smedberg said.
“This home is in an Indian mall, but with solutions from IKEA, where we are catering the customer needs based on research we have done about how people want to live. You cannot shop here yet, but you can taste food samples. We would also reveal more and more low-priced products here, and we would also like to showcase the products from various areas in a home that IKEA has to offer,” Smedberg said, adding that around 1,000 products available at upcoming IKEA store will be priced under Rs 200.
This experiential home, the next of which is expected to come up in Mumbai, will showcase furnishing products across segments such as bedrooms, bathrooms, kitchens, living rooms. Even as customers visiting the Hej Home will be able to look at a variety of products and furnishing solutions offered by IKEA, they will only be able to buy from the 4,00,000 square feet store when it opens.
For setting up of the IKEA store in Hyderabad, Telangana government’s Principal Secretary in the Departments of Industries & Commerce, and IT, Electronics & Communications Jayesh Ranjan said that the Swedish giant has been given a slew of incentives.
“So far we have given them three incentives — one is 100 per cent reimbursement of stamp duty; second is that for about five years they will get a 1 rupee per unit discount on power tariff; and third we will partly reimburse their training costs. This is the first batch of incentives that we have given. We are coming up with a retail trade policy, under which there will be some more incentives that will be passed on,” Ranjan said.