jiggo Posted May 3, 2013 Posted May 3, 2013 Cabinet clears Swedish firm IKEA’s Rs 10,500 cr investment proposal http://www.firstpost.com/business/cabinet-clears-swedish-firm-ikeas-rs10500-cr-investment-proposal-747531.html Good news from foreign direct investment point of view, hopefully we see more foreign retailers follow suit. New Delhi: The government today formally allowed Swedish furniture major IKEA to invest Rs 10,500 crore for setting up single brand retail stores to sell mostly home furnishing items. “Whatever proposal of IKEA was there has been cleared,” Information and Broadcasting Minister Manish Tewari told reporters after the application was cleared by the Cabinet Committee on Economic Affairs headed by Prime Minister Manmohan Singh. IKEA has proposed setting up 10 furnishing and homeware stores as well as allied infrastructure in over 10 years in India by investing about Rs 10,500 crore. Subsequently, it plans to open 15 more stores. The global furniture major has also been allowed to run cafes and restaurants within its single brand stores in India, but it cannot sell packed food items. IKEA can sell food and beverages at its restaurants/cafes located within its stores. The IKEA proposal was earlier cleared by the Foreign Investment Promotion Board (FIPB), but since the proposed investment was more than Rs 1,200 crore, CCEA approval was needed. As of now, IKEA’s will be the largest investor in the single-brand retailing ever since the government allowed foreign investment in this sector. The company has been sourcing many products from India for the past 25 years. Welcoming the approval, IKEA said “this is a very positive development” and promised to offer good quality home furnishing products and solutions at affordable prices.
The Outsider Posted May 4, 2013 Posted May 4, 2013 It will be interesting to see the business model Ikea adopts in India. Their furniture quality is very ordinary and their selling point is ease of packing, assembly, and transportation of the furniture. The cheap labor costs in India negate these advantages to a large extent. I am sure there will be the initial clamor of getting something from Ikea, but would make for an interesting case study as to how they sustain the business down the line.
Swing_n_Speed Posted May 4, 2013 Posted May 4, 2013 It will be interesting to see the business model Ikea adopts in India. Their furniture quality is very ordinary and their selling point is ease of packing, assembly, and transportation of the furniture. The cheap labor costs in India negate these advantages to a large extent. I am sure there will be the initial clamor of getting something from Ikea, but would make for an interesting case study as to how they sustain the business down the line. Plsss I'm sick and tired of all and sundry stating IKEA furniture ordinary or cheap! They may have had cheap furniture Godknows when. But currently they sell a pretty convincing range of products. Cheap products they do sell , but they definitely go up to mid-high level.....it's all about range. And for most Indians mid level IKEA is gonna be super duper luxury. I mostly use IKEA stuff, from work-desk, table lamps, bed, sofas, actually a good 90% of my house is furnished by IKEA and that includes, kitchenware, dining, carpets.... Yes there is the odd items that I own which are high end, like maybe my handmade bar cabinet or certain lighting appliances (I'm crazy bout Moroccan chandeliers and IKEA doesn't sell them) But other than that IKEA is a staple brand for me. I honestly don't see what the fuss is all about. Something tells me this whole IKEA is cheap is some lame American stereotype.... As far as business model goes, India should be a dream destination for IKEA. Just don't screw up and they will be fine.
The Outsider Posted May 4, 2013 Posted May 4, 2013 Plsss I'm sick and tired of all and sundry stating IKEA furniture ordinary or cheap! They may have had cheap furniture Godknows when. But currently they sell a pretty convincing range of products. Cheap products they do sell , but they definitely go up to mid-high level.....it's all about range. And for most Indians mid level IKEA is gonna be super duper luxury. I mostly use IKEA stuff, from work-desk, table lamps, bed, sofas, actually a good 90% of my house is furnished by IKEA and that includes, kitchenware, dining, carpets.... Yes there is the odd items that I own which are high end, like maybe my handmade bar cabinet or certain lighting appliances (I'm crazy bout Moroccan chandeliers and IKEA doesn't sell them) But other than that IKEA is a staple brand for me. I honestly don't see what the fuss is all about. Something tells me this whole IKEA is cheap is some lame American stereotype.... As far as business model goes, India should be a dream destination for IKEA. Just don't screw up and they will be fine. Arre, why are you getting so worked up. I have some Ikea furniture at my place as well, and find their lightweight and portable style very convenient, even if I need to store something in the basement. But just because I own it, doesn't mean it's quality furniture. My point is that they use ordinary quality wood and India offers better wood at very competitive prices. For example, really good quality finished teak is awesome in India. With low labor prices you can have custom made furniture built from it and moved in and out of your place at very affordable prices. I doubt Ikea offers anything in that level of quality. They'll still have a decent market in middle and upper middle class apartments in Metros, but really how big is that market? By the way the "lame American stereotype" you are referring to is much more common in Europe about Ikea, believe it or not.
cowboysfan Posted May 4, 2013 Posted May 4, 2013 Ikea sucks donkey balls,I have never hated a company as much as i hate IKEA.All their products are incredibly hard to put together and are so flimsy that you are always afraid it will break at any moment.
beetle Posted May 4, 2013 Posted May 4, 2013 It will be interesting to see the business model Ikea adopts in India. Their furniture quality is very ordinary and their selling point is ease of packing, assembly, and transportation of the furniture. The cheap labor costs in India negate these advantages to a large extent. I am sure there will be the initial clamor of getting something from Ikea, but would make for an interesting case study as to how they sustain the business down the line. They should do fine as long as they are better in quality than the cheap chinese stuff and cheaper in price than the Italian stuff .
Clarke Posted May 4, 2013 Posted May 4, 2013 Not quite an Ikea fan but hey, I still love more options and healthy competition.
punjabi_khota Posted May 4, 2013 Posted May 4, 2013 They have some neat products no doubt. :nice: I am 100% Ikea currently, but I live in a tiny studio so I don't have much anyways.
cowboysfan Posted May 4, 2013 Posted May 4, 2013 They should do fine as long as they are better in quality than the cheap chinese stuff and cheaper in price than the Italian stuff . trust me,they look ok but are flimsy and delicate.you will know once you change houses or apartments(they wont make it in transit unless you break it down again which is almost impossible.
Yoda-esque Posted May 4, 2013 Posted May 4, 2013 They have some neat products no doubt. :nice: I am 100% Ikea currently, but I live in a tiny studio so I don't have much anyways. same here :two_thumbs_up:
hhunaeh Posted May 4, 2013 Posted May 4, 2013 furniture in india is meant to last for generations. I wonder how ikea's here today gone tomorrow model will fit into it.
Zap_Brannigan Posted May 4, 2013 Posted May 4, 2013 I love DIY concept and IKEA. I went to an IKEA a couple of months back and spend just 100 pounds and got so many stuff that made my cooking so much easier. You spend so little that its almost use and throw after a few months. They are not bad looking either. The last time i went looking for furniture in India, they cost more than in UK and US. So i hope IKEA still goes with the low cost option and doesnt because a premium product like McD's just because they have a brand value internationally and Indians are ignorant on these brand value.
Prakat Posted May 5, 2013 Posted May 5, 2013 Buy at Ikea and have it all assembled at the "Ikea Assembling Store" next door and then load it up in a tempo to take it home. People used to chepo Ikea designs from their catalogues and having them made by their furniturewalla for decades.
CSK Fan Posted May 5, 2013 Posted May 5, 2013 furniture in india is meant to last for generations. I wonder how ikea's here today gone tomorrow model will fit into it. Not anymore, thats changing
beetle Posted May 5, 2013 Posted May 5, 2013 furniture in india is meant to last for generations. I wonder how ikea's here today gone tomorrow model will fit into it. No longer true.....
Swing_n_Speed Posted May 5, 2013 Posted May 5, 2013 I love DIY concept and IKEA. I went to an IKEA a couple of months back and spend just 100 pounds and got so many stuff that made my cooking so much easier. You spend so little that its almost use and throw after a few months. They are not bad looking either. The last time i went looking for furniture in India, they cost more than in UK and US. So i hope IKEA still goes with the low cost option and doesnt because a premium product like McD's just because they have a brand value internationally and Indians are ignorant on these brand value. True...what I love best bout Ikea is that I can change my interiors ever so often, not cos they broke down but cos they didn't cost so much.
jiggo Posted May 5, 2013 Author Posted May 5, 2013 furniture in india is meant to last for generations. I wonder how ikea's here today gone tomorrow model will fit into it. It's all cheap plywood and particle boards these days. Rubbish against water and termites. And flimsily put together. Strict laws against chopping trees in India these days. Entire saw mills have been shut because of using illegally chopped trees.
b555 Posted May 5, 2013 Posted May 5, 2013 It's all cheap plywood and particle boards these days. Rubbish against water and termites. And flimsily put together. Strict laws against chopping trees in India these days. Entire saw mills have been shut because of using illegally chopped trees. yes. artificial plywood or rather kind of plastic setups have started flourishing in India more than the classic wooden ideas
yoda Posted May 6, 2013 Posted May 6, 2013 If furniture quality is already deteriorating in India, then you would find that IKEA will fit in very well.
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