This is an interesting interview of Mr Ashish Goel of Urban Ladder, the online furniture delivery player.
He says they are looking forward to IKEA’s entry for some competition. At the same time he is not worried as IKEA has not done well in online space anywhere in the world:
What happens when Ikea and others come into the market?
That is where the real competition is. We have been preparing for it for the past one and half years.
With offline stores?
We will not have offline stores. Let us say that in two years from now, the first Ikea store opens. We have two years to get to a point where the Indian consumer says I have got brand Urban Ladder, a brand I love and with products that are fantastic; pricing is great, service is off the charts and it is delivered in the convenience of my home. When I have got brand Urban Ladder, why should I lug myself halfway across the town, with crazy traffic and with no public transport? That is the point we have to get to. As much as we ask ourselves this question, really speaking, it should be Ikea that should be asking this question.
What will prevent them replicating your online model in India?
They have not won the online game anywhere in the world. They don’t understand it. They are smart people. If you had asked me the question 12-15 months earlier, I would have given you a slightly different answer. We will not go head-on with them. We will create a brand that is a little different from what Ikea will do.
Now, in the last year, we have grown four to five times. Our catalogue has grown, our customers have grown, that interestingly has led to us become little more confident to say: Can we get to a point where all the cities that Ikea opens their store, before the day they open, we will be there with a revenue run rate that will be higher than the revenue run rate they will be one year from then. Which means every city they will open, we will be their incumbent. This means, we will be doing Rs 30 crore plus monthly revenue in each of these cities.
This is some talking. Talk about an online Indian player not just competing with IKEA but calling itself an incumbent in the space!!
Really interesting times for Indian economy..