Company News • 07.01.2013

Prospects Improve in India

IKEA moved a step closer to setting up its stores

Shoppers push carts into an Ikea in West London.
Shoppers push carts into an Ikea in West London.
Source: Reuters

The IKEA Group's India plans look brighter, with a senior minister indicating that the government is likely to approve the Swedish retailer's application to set up wholly owned stores and might drop a condition that would have limited the company's product offerings.

"The government has taken a favorable and sensitive view in response to IKEA's approach to us," Trade Minister Anand Sharma said. IKEA moved a step closer to setting up its stores in India - one of the company's largest untapped markets - when the country's foreign-investment board decided to forward the retailer's €1.5 billion ($2 billion) proposal to the federal cabinet.

The Foreign Investment Promotion Board, however, imposed certain conditions, including a bar on the company selling any products that it doesn't brand, including secondhand furniture, textile goods, toys, books and consumer electronics, as well as food-and-beverage items at in-store cafeterias, according to people in the government familiar with the matter.

IKEA poses certain demands

IKEA subsequently wrote to the Indian government, saying that - in keeping with what it called the "IKEA concept" - the company must be allowed to retail all of its products in India and run in-store restaurants, as it does in every country where it operates a store.

The Foreign Investment Promotion Board will again study IKEA's plan before forwarding it to the federal cabinet for final approval, Mr. Sharma said, without providing a specific time frame. Separately, the Press Trust of India news agency said the board will take another look at IKEA's proposal on Monday.The board is required to send all investment proposals of more than 12 billion rupees, or $218 million, to the cabinet.

Only few foreign retailers become active in India

IKEA is among the few foreign retailers that have sought permission to open wholly owned stores in India after New Delhi last year allowed 100% foreign ownership in single-brand retail ventures, where a company sells only its own brand of goods. Previously, foreign companies could own a maximum 51% stake in such retail operations.

IKEA's proposal to set up 25 stores in India, if implemented, would be the largest investment in India by a global company. "The IKEA Group is confident that the Indian government will support its application as per the 'Ikea concept,' and IKEA respects the Indian government's efforts in this process, " said a spokeswoman for the company in India.

As part of a financial overhaul in the retail sector, the Indian government in September also changed investment rules to allow foreign supermarkets to set up retail outlets through joint ventures. Previously, foreign companies could operate only wholesale businesses in the multibrand segment.


 

related articles:

popular articles:

Thumbnail-Photo: POS TUNING supports Grips&Co
26.09.2019   #sales promotion #product presentation

POS TUNING supports "Grips&Co"

POS TUNING is committed to promoting young talent in the retail

Since the magazine "Rundschau für den Lebensmittelhandel" launched the Grips&Co competition, the annual cult event for junior staff, HR specialists and brand industry has been taking place for almost 40 years. Two days of ...

Thumbnail-Photo: Distract or divert!
10.09.2019   #customer satisfaction #customer relationship management

Distract or divert!

How to engage customers at the checkout

Retailers and retail designers spend a considerable amount of time discussing and juggling a crucial aspect of the customer experience at the point of purchase: the checkout.To be fair, it’s not easy to turn the moment when customers have to ...

Thumbnail-Photo: A pearl among commodities: encouraging impulse buys...
11.09.2019   #pos marketing #customer analysis

A pearl among commodities: encouraging impulse buys

How to make the most of wait times

It’s wonderful if customers come to retail stores to buy things. It’s fantastic if they buy more than they planned to purchase. This offers many opportunities, especially for brick and mortar retailers as surveys show: customers are more ...

Thumbnail-Photo: Over fifty retailers demand chancellor fix business taxation...
20.08.2019   #brick and mortar retail #financial accounting

Over fifty retailers demand chancellor fix business taxation

High Street chains and shops sign a letter over business rates

Over fifty major retailers have come together to demand the Government takes action to fix the broken business rates system. In a letter to the new Chancellor, Sajid Javid, retailers called on the Government to put business rates at heart of the ...

Thumbnail-Photo: British consumer behavior: ethical and Instagrammable...
06.08.2019   #marketing research #customer analysis

British consumer behavior: ethical and Instagrammable

Report tracking spending across major consumer markets

As Brexit rumbles on, British consumers continue to spend on brands and businesses that successfully tap into the Holy Trinity of current consumer behavior: the ‘experience economy’, the booming health and wellness movement, and the ...

Thumbnail-Photo: SPAR continues European expansion with entry into Kosovo...
02.08.2019   #brick and mortar retail #business developement

SPAR continues European expansion with entry into Kosovo

6 store openings in 2019 and 7 more planned for 2020

The voluntary food retail organization SPAR International announces the brand’s entry into the Kosovan retail market, the 27th European market, in line with their expansion strategy.SPAR Kosovo is a new entity set up by a consortium of ...

Thumbnail-Photo: Vast majority of consumers plan to return holiday gifts...
03.10.2019   #pos marketing #personalization

Vast majority of consumers plan to return holiday gifts

“Retailers need to seize the moment."

During the upcoming holiday season 77 percent of consumers surveyed said they plan to return a portion of their gifts, with nearly 20 percent expecting to return more than half of their presents (sorry grandma!). This is both a blessing and a curse ...

Thumbnail-Photo: 90+ year-old manufacturer redesigns its stores …...
19.09.2019   #consulting #customer satisfaction

90+ year-old manufacturer redesigns its stores …

… making window and door shopping easier, more personalized and enjoyable

Each year we hear about the increase in online sales, and the talk of the demise of brick-and-mortar stores. But, brick-and-mortar stores aren’t going anywhere – if they adapt. And Pella Windows & Doors is adapting.Rather than ...

Thumbnail-Photo: VKF Renzel takes over exclusive distribution of EasyCubes...
23.10.2019   #product presentation #goods illumination

VKF Renzel takes over exclusive distribution of EasyCubes

The sales promotion specialist VKF Renzel took over the sole distribution of the
EasyCubes product presentation system for the DACH region with effect from
23.09.2019

After VKF Renzel was already involved in the successful product launch, this is now the consistent further development. ...

Thumbnail-Photo: Five retailers are opening stores for every retailer closing stores...
28.08.2019   #retail #brick and mortar retail

Five retailers are opening stores for every retailer closing stores

New report by IHL Group debunks the retail apocalypse narrative

More than five retail chains are opening stores for every retailer that is closing stores in 2019, according to new research from IHL Group. This is up from 3.7 in 2018. The company also reports that the number of chains adding stores in 2019 has ...

Supplier

VKF Renzel GmbH
VKF Renzel GmbH
Im Geer 15
46419 Isselburg
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
Mood Media GmbH
Mood Media GmbH
Wandalenweg 30
20097 Hamburg
POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen
loadbee GmbH
loadbee GmbH
Nikolaus-Otto-Straße 13
70771 Leinfelden-Echterdingen
HappyOrNot
HappyOrNot
Innere Kanalstraße 15
50823 Köln