First Ikea store opens in India
August 8, 2018 -- Ikea has opened its first store in India, bringing inexpensive Nordic-inspired furnishings and food to the world’s fastest-growing middle class. India’s middle-class market is predicted to soar by more than 560% in value by 2030.
Ikea’s debut comes as India’s homewares and home furnishings sales hit US$12.9 billion in 2017. Ikea has plans eventually to open 25 mega-stores in the country.
The world’s biggest furniture retailer is luring customers with two-seat sofas costing as little as 5,990 rupees ($87.3, €75.3) and 7,990-rupee ($116, €100) double-beds. The Hyderabad store also features a 1,000-seat restaurant serving a mix of Nordic and local dishes, including biryani for 99 rupees ($1.4, €1.2) a portion.
India is poised to overtake the U.S. to become the world’s second-largest middle-class market by 2022. By 2030, India’s middle class consumers will be spending an estimated $10.7 trillion, up from $ 1.9 trillion in 2015.
Homi Kharas of the Brookings Institution says that the trend is clear. In 2015, the top 10 middle-class markets in the world were from the G-7 group (except Canada) and the economies of Brazil, Russia, India, and China. By 2020, Indonesia will enter the top 10, while Italy will drop out. By 2030, Mexico will join, and France will drop out.
($1 = 68.6850 Indian rupees)