Ikea said that customers in Mumbai, Pune, Hyderabad, Ahmedabad, Surat and Baroda can order their range of home furnishings and items using the app available on iOS and Android. The application will offer 7,000 products
[avatar user=”Apoorva Garg” size=”thumbnail” align=”left”]By Apoorva Garg[/avatar]
New Delhi. Ikea has launched a mobile shopping app in India, in line with its plan to take a more multi-channel approach to expanding its presence in this market.
The app’s launch comes after covid-induced closures delayed the Swedish retailer’s plans to build large stores in India, a market where it opened its first store in 2018 in Hyderabad.
Customers from Mumbai, Pune, Hyderabad, Ahmedabad, Surat and Baroda can order their range of home furnishings and items using the app available on iOS and Android, the company said. The application will offer 7,000 products.
“It is important to note that the Indian consumer is very application oriented. We can see that in terms of smartphone market penetration, mobile internet usage and mobile app usage in the country, “said Kavitha Rao, country business manager at Ikea India.
This is “creating a certain level of urgency” in terms of launching the app here, she said. “We also expect to see a much higher conversion, but we also believe that we will attract a new segment of customers who, perhaps, were not as comfortable using the mobile website in the past.”
The company said that the user’s feed will be personalized with images and products based on interests and purchases.
The app also allows customers to add the products to their shopping list even while physically browsing the products in the store.
Customers can also find a built-in barcode scanner that will help them learn more about the products, including materials and dimensions, the company said in a statement.
The Ikea India store in Hyderabad was followed by online stores in Mumbai, Hyderabad and Pune in 2019.
The second brick-and-mortar store opened in Navi Mumbai, Maharashtra, in 2020. The company saw an increase in conversions thanks to increased use of its online shopping platform over the past two years.
The past year has been particularly difficult for retailers around the world as they face temporary store closures triggered by the pandemic and consumers avoid physical stores to shop online.
India has also seen a “dramatic increase in e-commerce adoption,” consulting firm Accenture said in a recent report.
“Online sales (on the mobile site) have done very well and are much higher than our expectations. India was rated as one of the countries with the highest digital adoption, and we also provided a large number of services to support our consumers during that period of time, “said Kavitha Rao.
Ikea plans to reach 100 million Indian consumers in the next few years through different channels.
Through the app, the retailer plans to target the two cities where it has physical stores: Mumbai and Hyderabad. “We would like to target 10 million people in Hyderabad and 22 million people in Mumbai. We will look at the entire population and households that can be reached in both cities, “she said.
Online sales could open soon for shoppers in Bengaluru, where the retailer has a store under construction, Rao said. “That is the next market that we will open. We are also exploring the possibilities that exist to open e-commerce in more markets, “he added without elaborating.
Ikea also plans to open its first shopping center in India in Noida after it bought land in the state earlier this year.
India has 574 million active monthly Internet users; Smartphone penetration was 44% in fiscal 2020. Its large Internet population makes the country an attractive market for retailers looking to offer more digitally accessible shopping points.
Ikea is taking a more multi-channel approach globally, as it seeks to reach more shoppers in densely populated neighborhoods beyond its large suburban stores.
The launch of the app is part of that strategy to reach consumers through a combination of large Ikea stores, smaller stores in the city center, and online platforms.
After launching its Navi Mumbai store with an investment of ₹ 1,500 crore, the retailer also plans to open two smaller format stores in Mumbai within a year, the company said in December.
Ikea India Pvt. Ltd reported a 63% increase in revenue for the year ended March 31, 2020 to ₹ 665.6 crore, Mint previously reported, citing data sourced from Tofler. Loss of