Ikea's product development centre in Almhult, Sweden. The firm is adapting its approach for the Indian market. Anna Ringstrom/Reuters
Ikea's product development centre in Almhult, Sweden. The firm is adapting its approach for the Indian market. Anna Ringstrom/Reuters

Ikea set to adapt as it opens first India store



Ikea is set to open its first store in India next month, and the world's biggest furniture retailer is localising its offering - from the food menu to its "do-it-yourself" (DIY) assembly model - to ensure success in the country.

The retailer, which aims to soon open a 37,160 square metre store in the southern Indian city of Hyderabad, is setting up its first ever in-house assembly team and offering local delicacies such as samosas to woo shoppers, at a time when growth in some of its more established markets is slowing.

"The entry point has been that the identity was going to be the same," said Ikea's finance head Juvencio Maeztu.

"But, for example, Indians like firm mattresses so you need to adapt the mattress offering. And we are developing a mattress that has a coconut layer because it is cooler for the summer," said Mr Maeztu, adding such customisation would be seen in items ranging from cutlery to showroom layouts.

India's furniture market is largely dominated by unorganised retail and local vendors, and consumers are used to enjoying the comfort of made-to-order or fully assembled furniture delivered to their doorsteps.

The "do-it-for-me" culture is very prevalent in India, said Sowmya Adiraju, an analyst at research firm Euromonitor, adding Ikea would have to look into delivery and assembly needs to woo Indians.

While Ikea's popular DIY furniture is well known, it is also sometimes parodied as shoppers are at times overwhelmed by the task of assembling intricate units.

The Swedish retailer is setting up a 150-member team to help assemble furniture and is also partnering with UrbanClap, an app-based service that connects people with everyone from tutors to carpenters.

The Ikea in-house assembly team will be more a little more expensive than UrbanClap's services, said Patrik Antoni, Ikea's deputy head in India.

The companies both declined to reveal pricing details, but currently UrbanClap charges customers about $3.75 for a 30-minute carpentry job, such as installing Ikea's popular Billy bookcase. In comparison, TaskRabbit, the services platform acquired by Ikea in 2017, charges US shoppers a minimum of $36 for any installation job.

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Ikea has visited more than 800 homes in India to see how people live across the country, said Mr Maeztu, who led the firm's India team before moving to take on his new global role earlier this year.

While the Hyderabad store will have spacious room designs, its Mumbai store will pack a lot more product into a smaller space to reflect the city's apartment sizes.

"You need to understand what life's about and then the range is presented to give solutions to the needs and frustrations," Mr Maeztu said.

Like many international restaurant chains in India, Ikea is also changing parts of its menu to suit local palates.

To cater to Hindu sensitivities it will not sell its beef meatballs in the country, but serve chicken and veggie balls instead, while also offering shoppers biryani, samosas and veggie hotdogs, said Mr Antoni.

One winning formula that Ikea plans to stick with is low price points, by offering 1,000 products priced under $3, said Ikea Group CEO Jesper Brodin, adding it was keen to avoid missteps made in Australia and China, where its initially higher pricing discouraged potential customers.

Although Ikea plans to gradually ramp-up local sourcing, one challenge to keeping prices low will be taxes, said Mr Brodin. "I'd say the biggest challenge for us is [import] duties. That's not something we can do something about."

BIG BET, BIGGER RISKS

The foray into India comes at a time when IKEA's growth has slowed in some of its established markets, pushing it to enter new markets such as Chile and India, while developing its digital offering and smaller city centre store formats.

IKEA Group's company-owned stores in 2017 grew retailsales by 4 percent. In comparison sales in India's homeware and home furnishing stores grew some 9 percent, according to Euromonitor.

Still, IKEA, which has already sunk about $670 million into India, will face stiff competition in the Indian market from a slew of online furniture start-ups such as Pepperfry, UrbanLadder and FabFurnish, so success will come at a price.

IKEA's Antoni said the company, which had initially expected to invest $1.56 billion to set up 25 traditional stores by 2025, was already looking to spend more than originally planned and eyeing experimenting with non-traditional formats too.

CFO Maeztu said some of the initially planned 25 stores would likely be in new formats. The first four would however be the classic giant out-of-town warehouse stores to cement the image.

The company, which has bought land in Hyderabad, Bangalore, Mumbai and Gurugram is also looking to expand into five other markets - Surat, Ahmedabad, Kolkata, Chennai and Pune, said Brodin.

"This is our next really big market," said Brodin, while warning it would take years for the company to see major profits from the market.

Origin
Dan Brown
Doubleday

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

The specs: 2018 Infiniti QX80

Price: base / as tested: Dh335,000

Engine: 5.6-litre V8

Gearbox: Seven-speed automatic

Power: 400hp @ 5,800rpm

Torque: 560Nm @ 4,000rpm

Fuel economy, combined: 12.1L / 100km

Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
  • Stay invested: Time in the market, not timing the market, is critical to long-term gains.
  • Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
  • Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
 
 
Results

5pm: Maiden (PA) Dh80,000 (Turf) 1,600m; Winner: Aahid Al Khalediah II, Pat Cosgrave (jockey), Helal Al Alawi (trainer)

5.30pm: Handicap (PA) Dh80,000 (T) 2,200m; Winner: Whistle, Harry Bentley, Abdallah Al Hammadi

6pm: Wathba Stallions Cup - Maiden (PA) Dh70,000 (T) 1,600m; Winner: Alsaied, Szczepan Mazur, Ibrahim Al Hadhrami

6.30pm: Emirates Fillies Classic – Prestige (PA) Dh100,000 (T) 1,600m; Winner: Mumayaza, Antonio Fresu, Eric Lemartinel

7pm: Emirates Colts Classic – Prestige (PA) Dh100,000 (T) 1,600m; Winner: Hameem, Adrie de Vries, Abdallah Al Hammadi

7.30pm: President’s Cup – Group 1 (PA) Dh2,500,000 (T) 2,200m; Winner: Somoud, Richard Mullen, Jean de Roualle

8pm: President’s Cup – Listed (TB) Dh380,000 (T) 1,400m; Winner: Medahim, Richard Mullen, Satish Seemar

Stan%20Lee
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20David%20Gelb%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
ULTRA PROCESSED FOODS

- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns 

- Margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars

- Energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces

- Infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes

- Many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts

Ultra processed foods

- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns 

- margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars;

- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces

- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,

- many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts.

Western Region Asia Cup Qualifier

Results

UAE beat Saudi Arabia by 12 runs

Kuwait beat Iran by eight wickets

Oman beat Maldives by 10 wickets

Bahrain beat Qatar by six wickets

Semi-finals

UAE v Qatar

Bahrain v Kuwait

 

Vidaamuyarchi

Director: Magizh Thirumeni

Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra

Rating: 4/5

 

WHEN TO GO:

September to November or March to May; this is when visitors are most likely to see what they’ve come for.

WHERE TO STAY:

Meghauli Serai, A Taj Safari - Chitwan National Park resort (tajhotels.com) is a one-hour drive from Bharatpur Airport with stays costing from Dh1,396 per night, including taxes and breakfast. Return airport transfers cost from Dh661.

HOW TO GET THERE:

Etihad Airways regularly flies from Abu Dhabi to Kathmandu from around Dh1,500 per person return, including taxes. Buddha Air (buddhaair.com) and Yeti Airlines (yetiairlines.com) fly from Kathmandu to Bharatpur several times a day from about Dh660 return and the flight takes just 20 minutes. Driving is possible but the roads are hilly which means it will take you five or six hours to travel 148 kilometres.

Tips for job-seekers
  • Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
  • Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.

David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East

THE SPECS

Touareg Highline

Engine: 3.0-litre, V6

Transmission: 8-speed automatic

Power: 340hp

Torque: 450Nm

Price: Dh239,312

The specs

Engine: Four electric motors, one at each wheel

Power: 579hp

Torque: 859Nm

Transmission: Single-speed automatic

Price: From Dh825,900

On sale: Now

The 12 breakaway clubs

England

Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur

Italy
AC Milan, Inter Milan, Juventus

Spain
Atletico Madrid, Barcelona, Real Madrid

Anxiety and work stress major factors

Anxiety, work stress and social isolation are all factors in the recogised rise in mental health problems.

A study UAE Ministry of Health researchers published in the summer also cited struggles with weight and illnesses as major contributors.

Its authors analysed a dozen separate UAE studies between 2007 and 2017. Prevalence was often higher in university students, women and in people on low incomes.

One showed 28 per cent of female students at a Dubai university reported symptoms linked to depression. Another in Al Ain found 22.2 per cent of students had depressive symptoms - five times the global average.

It said the country has made strides to address mental health problems but said: “Our review highlights the overall prevalence of depressive symptoms and depression, which may long have been overlooked."

Prof Samir Al Adawi, of the department of behavioural medicine at Sultan Qaboos University in Oman, who was not involved in the study but is a recognised expert in the Gulf, said how mental health is discussed varies significantly between cultures and nationalities.

“The problem we have in the Gulf is the cross-cultural differences and how people articulate emotional distress," said Prof Al Adawi. 

“Someone will say that I have physical complaints rather than emotional complaints. This is the major problem with any discussion around depression."

Daniel Bardsley

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

BUNDESLIGA FIXTURES

Friday (all kick-offs UAE time)

Hertha Berlin v Union Berlin (10.30pm)

Saturday

Freiburg v Werder Bremen (5.30pm)

Paderborn v Hoffenheim (5.30pm)

Wolfsburg v Borussia Dortmund (5.30pm)

Borussia Monchengladbach v Bayer Leverkusen (5.30pm)

Bayern Munich v Eintracht Frankfurt (5.30pm)

Sunday

Schalke v Augsburg (3.30pm)

Mainz v RB Leipzig (5.30pm)

Cologne v Fortuna Dusseldorf (8pm)

 

 

THE LIGHT

Director: Tom Tykwer

Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger

Rating: 3/5

AIDA%20RETURNS
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box

COMPANY PROFILE

Company name: Letstango.com

Started: June 2013

Founder: Alex Tchablakian

Based: Dubai

Industry: e-commerce

Initial investment: Dh10 million

Investors: Self-funded

Total customers: 300,000 unique customers every month

Simran

Director Hansal Mehta

Stars: Kangana Ranaut, Soham Shah, Esha Tiwari Pandey

Three stars

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UAE currency: the story behind the money in your pockets
The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

SPECS
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