The pilot-project experiential showcase, not open to customers, is the first of its kind for Amazon globally.
New Delhi: Looking at the upcoming festive season, e-commerce giant Amazon Thursday set up a one-day ‘Home’ in the national capital and furnished it entirely with products available on its website — beds, closet, cupboards, tables, sofas, cushions, and ornaments.
The showcase in New Delhi’s Defence Colony, not open to customers, was the first of its kind for the firm as it looks to tap India’s growing furniture market.
Also read: The Sri Lankan who solved a maths problem for Jeff Bezos & gave the world Amazon
In a strategy similar to global furniture brand IKEA’s, Amazon set up the experiential showcase as a pilot project.
IKEA’s lone Indian showroom in Hyderabad has concept rooms decked out and furnished using only its products to show the customer how to equip a home and decorate it.
‘No immediate plans’
Each of the concept rooms in the ‘Festive Home’ showcased how they can be furnished with products available on Amazon.
However, unlike at IKEA concept rooms, Amazon didn’t have price tags on the products. Instead, it preferred QR codes that could be scanned on the Amazon mobile app to get more details on the product, including its price.
“The concept has been well received. Anyone walking in, even our employees, is pleasantly surprised,” said Manish Tiwary, vice president, category management, Amazon India.
Tiwary, however, added that the idea is still at an elementary stage and there are no immediate plans to open such a concept home to customers.
During festive seasons like Diwali, gold items see the most growth in purchases. But this festive season, Amazon is also promoting its furniture solutions through this concept, said Tiwary.
He added, “Furniture is a fast growing market and we will continue to focus more on the category.”
Also read: Amazon’s India chief tells employees to shut down email at night, maintain life balance
On being asked about competition with IKEA, Tiwary said “We never focus on competition. We want to sell the widest selection possible, furniture just happens to be another category.”
The e-commerce giant hopes to inch out competition through efficient product delivery and wider array of products. “We believe Amazon can add value to consumers in the furniture category through a large network of fulfillment centres to manage such bulky items and installation services through partners or Amazon Home Services,” said Tiwary.
Reports say Amazon plans to invest $7 billion in India to stave off competition and expand logistic capabilities and services like Amazon Prime Video and Prime Music.
The company already sells 172 million products spanning electronics, fashion, and groceries, said Tiwary.
IKEA, on the other hand, currently sells only furniture and home accessories in India. It reportedly plans to open another 40 stores in the country at a cost of over Rs 10,500 crore, as well as set up its own distribution centre in Pune at a cost of Rs 750 crore.
GlobalData, a data and insights solution provider, forecasts India’s home sector to grow at a CAGR of 10.9% through 2016-2021 to Rs 4,97,930 crore by 2021.