IKEA is Coming!

Once I visited the huge IKEA outlet near New York City. I was stunned at the innovative business scheme of this Swedish furniture and home furnishings giant. I could never perceive nor ever connect to the idea of how a small space could be transformed into a beautiful home at a low cost. I was amazed while walking through lakhs of sq. feet spread of IKEA’s different sections and was sparked within myself with newer ideas to plan, all by myself, my new home back in Kolkata!

Good news that such an innovative group had filed the final paperwork Monday last (8 Sept, 2012) with the Indian government for its entry to India. IKEA in June last asked India for permission to launch its retail operations in the country, promising to invest $1.9 billion (approx. Rs. 2 lakh crore over the coming years ― part of a broader push themselves into emerging markets including China and Russia.

It’s very big news for our country’s investment and employment generation. India’s own Pantaloon retail furniture chain, HomeTown, has already started flat-pack furnishing like IKEA’s, with outlets even in smaller cities in India. HomeTown’s furniture, in the contour of IKEA, is fast becoming popular for its design and maximum application in a relatively smaller space. I got my Kolkata home entirely furnished by HomeTown’s and Raj & Raj, now also in the business of flat-pack furniture. I am glad having them for less than Rs.1 Lakh plus my friends and relatives’ delight as bonus.

 IKEA furniture with a sofa set (on right) in a living room space of a 'complete home' of 1BD, 1Linen, WC+ shower in a 223 sq. ft. area.  Pic. by me

I learn that unlike in other countries, in coming days, IKEA in India will not source their goods only from their own country, Sweden that they have been doing for the past 25 years for other countries. I know HomeTown entirely sources their goods from Nagpur.

Its nice that Indian government has agreed to give IKEA to own 100 percent of “single-brand” retail with seven years to sell products made from 30 percent locally sourced content. This will hugely stimulate local manufacturing market with international exposure, open up wider employment, and also, benefit low cost convenient and needful furnishing for middle class. In this competitive world seven years may not be too small to tighten our belts with huge qualified technical skill manpower. Our middle class people’s wallets are thin. True.  But who doesn’t want inexpensive but nice home furnishings?

Let’s learn.  Let’s compete. We have talent. We have skill. We have money. We should be confident.