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: Now is the time to invest in retail
22.05.2020   #data warehouse management #logistic systems

Now is the time to invest in retail

POS TUNING solutions for the retail industry

The retail sector is particularly affected by the current crisis. The high sales and large customer rushes are countered by staff shortages, sick leave and delivery bottlenecks. In addition to the increased effort required to replenish shelves, it ...

Thumbnail-Photo: COVID-19: majority of Americans changing how they shop...
01.04.2020   #online trading #brick and mortar retail

COVID-19: majority of Americans changing how they shop

Most consumers are stocking up in-store, despite health concerns and empty aisles, according to the new Shopkick survey

As uncertainty and anxiety rise across the country due to COVID-19, Americans are doing whatever it takes to stay safe and healthy, including changing the way they shop, according to a new survey by leading shopping rewards app Shopkick. In fact, 76 ...

Thumbnail-Photo: LED: optical illusion at the airport
16.04.2020   #digital signage #brick and mortar retail

LED: optical illusion at the airport

‘The Fashion Gallery’ concept in Vienna International Airport Shopping Plaza

BrightSign, LLC® announced  that Lagardère Travel Retail has recently opened its new ‘The Fashion Gallery’ concept, an 800m² shop in Vienna International Airport Shopping Plaza Terminal 2 Departure under customs ...

Thumbnail-Photo: As pandemic spreads, most consumers retreat
12.05.2020   #customer analysis #coronavirus

As pandemic spreads, most consumers retreat

How will today’s uncertain times affect consumer behavior?

As a global health crisis potentially morphs into an economic one, Deloitte is conducting a series of biweekly surveys around the globe to better understand the interplay between personal safety and economic vulnerability as a driver of purchase ...

Thumbnail-Photo: Listen to the heartbeat: Music in the store
07.04.2020   #in-store marketing #customer analysis

Listen to the heartbeat: Music in the store

The best playlist for the store

Taste is one thing, science is another. Because the sounds that entice people into purchasing are not just a matter of chance. In an interview with the Sound Experts, we learn more about the planning of playlists for brick and mortar stores. ...

Thumbnail-Photo: 26 percent of UK shoppers plan to spend more online after COVID-19...
14.05.2020   #e-commerce #coronavirus

26 percent of UK shoppers plan to spend more online after COVID-19

Retailers without online presence threatened

With over a quarter of shoppers now planning to spend more online after the COVID-19 restrictions are lifted, retailers with a limited (or no) online proposition must consider investment in order to remain competitive, says GlobalData, a leading ...

Thumbnail-Photo: Job maker 4.0: e-commerce
27.05.2020   #online trading #e-commerce

Job maker 4.0: e-commerce

Retail training and continuing education programs are booming

Digitization in retail and e-commerce growth present fresh challenges for retail employees and the retail world. That’s why interest in the new "E-Commerce Merchant" dual vocational training course offered by Germany’s HDE ...

Thumbnail-Photo: Online channel may not be the savior clothing retailers hoped for...
13.04.2020   #online trading #e-commerce

Online channel may not be the savior clothing retailers hoped for

Closing distribution centers for employee safety

Since the UK Government enforced stores to close for the foreseeable future, many non-food retailers hoped that customers would divert spend onto their online channels. However, last week, Next – the UK’s third largest clothing retailer ...

Thumbnail-Photo: Cashier as british Vogue cover star
02.06.2020   #cashpoints #brick and mortar retail

Cashier as british Vogue cover star

Keyworkers chosen for front cover providing a special moment of thanks during pandemic

British Vogue is breaking with their usual cover stars - a space normally reserved for ‘A’ list celebrities and supermodels, and instead have devoted their iconic cover for the July 2020 issue to honouring key workers who have been ...

Thumbnail-Photo: Coronavirus: most Americans now using face masks...
15.05.2020   #brick and mortar retail #coronavirus

Coronavirus: most Americans now using face masks

New nationwide survey from Fast

A new nationwide survey from Fast shows that the vast majority of Americans – 88 percent – are now using face masks, but 19% want to personally receive a COVID-19 vaccine before they feel safe shopping in stores again, while another 29 ...

Supplier

POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen