homeretail NewsIKEA's biggest challenge in India could lie in enforcing an innocuous shopping policy

IKEA's biggest challenge in India could lie in enforcing an innocuous shopping policy

IKEA is pulling out all stops to ensure that its stores in India — the next ones are due to open in Mumbai and Bengaluru — are successful.

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By CNBC-TV18 Aug 10, 2018 4:24:47 PM IST (Published)

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IKEA's biggest challenge in India could lie in enforcing an innocuous shopping policy
Swedish retailer IKEA finally opened its first India store on Thursday. The store was much awaited if the rush of raucous crowds on the first day is any indication.

IKEA is pulling out all stops to ensure that its stores in India — the next ones are due to open in Mumbai and Bengaluru — are successful.
The Hyderabad store has IKEA's signature bulk. It is 400,000 square foot. IKEA is mindful of the Indian consumers’ price consciousness — at least 1,000 items, including some cutlery and stuffed toys, are priced at less than 200 rupees. It has even assembled a battery of carpenters to help customers with assembling furniture, adjusting its famous DYI model. It also has a bedspread named after formed prime minister Indira Gandhi.
Clearly, IKEA has retained several of its shopping features and tweaked a few to keep Indian customers happy. But the retention in India of one vital feature of its shopping experience — the right to cancel a purchase — could be tricky.
If customers are not satisfied with a purchase, they can return the product within 60 days (90 days for IKEA family member). IKEA said it would give customers a full refund by the same method as the original payment for products.
The only condition the company insists is that the product is returned with proof of purchase in new and unused condition and, if possible, the packaging. If proof of purchase is unavailable, the company said it will refund the lowest selling price within the last six months for that product. “You can return any product, except custom-made worktops, food items and real plants, as long as it’s in re-saleable condition. Unless faulty, we may refuse the return or offer an exchange or gift card only if the returns criteria are not fully met,” the company said.
A return policy of 60 days is rare in Indian retail. Most companies set a return period of not more than two weeks for return of products. IKEA's biggest challenge could be on dealing with customers who are prone to misuse this provision. The return policy has been a nightmare for ecommerce companies in India.
Several were forced to tweak this policy after rampant cases of customers returning goods for flippant reasons. There have been several instances of customers purchasing products in good condition only to return them in a damaged state.
IKEA could potentially face customers who could return a furniture item on the 59th day in ‘good condition’. It remains to be seen how the company deals with such customers.

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