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Last Updated : Nov 02, 2018 03:02 PM IST | Source: Moneycontrol.com

Ikea plans to tie up with developers to display furnished 'show homes': Report

Swedish home furnishing major Ikea opened its first store in the country in Hyderabad on August 9.

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Ikea is planning to tie up with real estate developers in Hyderabad to display its fully furnished "show homes" in upcoming housing projects to attract buyers, as per a report in Mint.


The aim is to give buyers an idea of how their homes would look with Ikea furniture, a company executive told the paper.


"Business to business is also an important area for us going forward. So what we know in Hyderabad today is that approximately about 1,000 new homes are being built a week. Our ambition is to build contact and be the partner of choice for constructions," John Achillea, Manager of Ikea's Hyderabad store, said in an interview.


Swedish home furnishing major Ikea opened its first store in the country in Hyderabad on August 9.


In pictures: Inside Ikea's first ever store in India that has just opened in Hyderabad


Achillea said Ikea is looking for developers and is in talks with firms such as the Ramky Group to implement the "show homes" concept.


"We don’t want to rush this, because it isn’t just an exhibition. Here, the furniture belongs to the developers as well, so they don’t pay for it. It is us showcasing our product. But we get to go there and talk about it," he said.


Ikea has invested Rs 1,000 crore in the Hyderabad outlet, which spreads across four-lakh square feet and displays over 7,500 products. The outlet sees about 20,000 to 25,000 customers on weekends, and about 15,000 people on weekdays, the report said.


Read — Ikea plans to invest Rs 3,000 crore for three new centres

Achillea said 60 percent of the store's sales come from home furniture and the rest of home furniture accessories. Home accessories under Rs 300 have reported very high volumes in sales. For instance, the "Kalas" -- four-piece spoon set -- that is priced at Rs 15 has turned out to be one of the best-selling items, selling between 2,000 to 3,000 pieces in a day, he added.

"It is a part of our affordability strategy. This is a spontaneous purchase, you see the price and say wow. But when you’re talking about say a Rs 20,000 sofa, more conversations need to happen," Achillea added.

Ikea's "show homes" concept, however, is not new as real estate developers already do the same with local furniture outlets in cities, Harminder Sahni, Founder and MD of Wazir Advisors, told the paper.

Read — Now hiring! Ikea to create 10,000 jobs in Maharashtra over next three years

 
First Published on Nov 2, 2018 03:02 pm
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