Swedish furniture giant IKEA India's Country Commercial Manager Adosh Sharma sees potential in quick commerce but doesn't want to get into it and then realise that they have teething issues. "In the end, it's not for us, it's for the customer, and we don't want the customer to suffer. But yes, I do see potential in quick commerce, and that is something that we would like to explore further, but we want to be ready for it," he told TNIE.
"We are at a stage where we are providing an excellent service on our app, and we want to build that format further in the front end and back end. Once we are ready and we feel that we are confident enough to open quick commerce, we will do this because we have a First Time Right policy," he added.
Sharma also added that they are already in the quick commerce business of providing products faster and also online.
"We already provide quick commerce for home furnishing. If I go to a furniture trader today and I were to ask for a delivery, it will be delivered within 15 days to three months, depending on the furniture dealer. Whereas at IKEA, I'm currently delivering day plus one, maximum day plus three, even in categories like kitchen,” he said.
He further added that IKEA is already in the quick commerce business of providing products faster and also online. “Sometimes you get the product the same day or the next day. But, in the 8-minute business, there's still some journey to complete," he said.
IKEA's 70% sales come from stores and the rest online. The company, which has made about Rs 10,500 crore investment in India, is also expanding into North India. It inaugurated the first customer distribution centre in Gurugram in partnership with Rhenus Logistics this year and this centre ensures doorstep delivery to the customers in the Delhi NCR region and an additional 9 markets in the North.
The retailer, which has three big format stores in Hyderabad, Navi Mumbai and Bengaluru, recently opened its 'Plan and Order Point' in Bengaluru.
"We create these 'Plan and Order Point' as a one-stop shop for interior design solutions... We intend to do a hub and spoke model," he said, adding that they are not a typical furniture retailer. "We want to sell furniture in India the IKEA way, which is about providing the full solution," Sharma said.
Currently, around 30% of the retailer's range is locally sourced, and it has partners from Inter-IKEA who are working on taking this up further. "We have ambitions of bringing this further up, but currently it's 30%," he said.
While the retailer's large concept stores, which are 4 lakh sq feet plus provide diverse experiences for customers, its smaller stores help to create easier access. IKEA's revenue from operations stood at Rs 1,809.8 crore in the financial year ended March 31, 2024.