Ikea Eyeing 10,000 Job Creations in Maharashtra
Ikea is all set to spread its waters across India by setting up a second store in Mumbai in 2019
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Furniture retail company Ikea is eyeing Navi Mumbai as a location for opening its second store and claims to generate 10,000 jobs in the next three years. This is the first time a furniture retailer is entering the Indian market. Ikea is a name with a giant reputation when it comes to furniture business. It is therefore important to unravel the motive and deconstruct the consequences of this move.
What is Ikea?
Ikea is a Sweden based multinational group of companies that was founded in 1943 by Ingvar Kamprad. It sells furniture and home accessories. The world's largest furniture retailer is known for its ready-to-assemble furniture packs. It has a big market in other countries and wants to now advent into the burgeoning Indian market consisting of 1.25 billion people.
The furniture giant opened a store this year in Hyderabad. Now, they are expanding their reach among the Indian millennials by capturing markets in metropolitans. It has announced that it will create over 10,000 jobs through direct and indirect means with the opening of its store in 2019.
Is It a Good Move?
Anna-Carin Mansson, Country People and Culture Manager, IKEA India said. "We are very excited to meet the many talented people of Mumbai who will bring their uniqueness to IKEA and strengthen our values. We would like to welcome all those who share our values to join us."
The expansion will be in the fields of e-commerce, logistics, operations etc. Ikea is making an advent at the right time. India is growing and expanding rapidly in all sectors especially the online platforms. This will give India a chance to once again experience foreign competence and in turn, increase their proficiency owing to foreign norms.
An International Competitor
India's population is becoming more and more urban, their needs, therefore, have changed. Moreover, the current Indian furniture market is on the brink of adopting the technology. This move has come at a time when both these aspects need to clash in order to make progress. Indian bourgeoisie with the majority of the population working now wants to have a feel of the larger than life furniture markets.
India already has home centres and lifestyle furniture stores that give a glimpse and feel of it. But with an international competitor like Ikea making an entry into the Indian market, the existing competitors need to pull up their socks.
It is going to be a good move on both ways. While Indian brands will grow from the competition, Indian millennials will get an international hang of this vast and dynamic market.