Ikea Business Strategy in India: Submitted To: Prof. Gadiyar
Ikea Business Strategy in India: Submitted To: Prof. Gadiyar
STRATEGY IN INDIA
Technology-Driven
Furniture Design
Popularity of Vintage
Furniture
Custom-Made
Globally-Inspired
Furniture
Furniture
IKEA IN INDIA
IKEA IN INDIA
• Each country is a strategic business unit for IKEA. India was the 37th entrant
for IKEA.
• IKEA has been present in India for the last 30 years as part of the INGKA
group, sourcing many different products for IKEA stores worldwide. Today
IKEA source products for approximately € 315 million every year.
• IKEA unveiled its first massive 4 lakh sq feet Indian store in Hyderabad on
Aug. 9, 2018.
• IKEA also has an online e-commerce presence in Mumbai, Pune and
Hyderabad.
• IKEA is now planning to open new retail stores in Mumbai, Bengaluru and
Delhi with similar capacity as Hyderabad
SWOT ANALYSIS
STRENGHT AND WEAKNESS
No. STRENGHT WEAKNESS
1) Government supports 100% Competition delivers ready-to-use furniture at
ownership of IKEA in India customer doorstep at their convenience
53 53
35 35
10 10
3
Style, Quality
33
69
56
16
12 13
10
4 5 5
1 Durability Style Quality Cost
Buying Options (%) General Problems (%)
Bad finishing/polish Bad plywood quality Loose fixture
Local Market Online website Second-hand purchase (OLX/Local Market Assemble by carpenter
Not robust/strong No problem
Fair/Exhibitions
25
43 42 23
20
17
15
11
2 3
50
26
25
34 21
18
16 10
OBSERVATIONS AND CONCLUSION
No. Parameter Observations Conclusion
1) Age 88% out of sample set of 115, were Indicates have freedom of
in age of 20years-40 years opinion/choice and have interest in
home décor.
2) Preference 49% people had given preference to Most important parameters for
durability, quality and cost selection of furniture is durability &
quality.
Cost, Style are important but have
less impact on buying behaviour.
Advantages
I. Well trained and aware Labour Force. Just train them as per IKEA culture
II. Scaling down the Competitor
III. Gaining the trust of the consumers
IV. Accesibility to Ready-use-infrastructure
CONCLUSION
CONCLUSION
• IKEA is currently standing as the leading brand name in furniture through
their constant innovations across the globe, which in itself is a crowd puller in
Indian market.
• Indians are easily attracted by foreign brands in retail and consumer goods.
• IKEA needs to consider opportunities and deal with threats to take advantage
in this competitive market.
• In Indian market, IKEA needs to face barriers and simultaneously maintain
pricing strategy, technology innovations as they can drive out from these
barriers.
• IKEA is able to generate strong growth and hold its identity in the market by
considering both micro and macro factors.
CONCLUSION
• To retain customers loyalty, IKEA focus on expanding their omnichannel and
multiformat strategy which will cater to the convenience factor of the Indian
market with positive publicity.
• All above factors will aid increasing IKEA'S customer baselines and help
them grab the larger pie in the Indian market.
• Recommended strategies will have positive results once implemented and the
standing of IKEA in the Indian Furniture Market would be heightened to a
whole new level.
REFERENCES
REFERENCES
https://www.architectandinteriorsindia.com/feature-s/ikea-india-enables-sustainable-living-at-home-offers-climate-positive-solutions-
across-categories
https://www.pymnts.com/news/retail/2020/ikea-goes-online-in-second-indian-market/
https://techcrunch.com/2019/05/20/livspace-ikea/
https://www.youngbhartiya.com/article/swedish-home-furnishing-retailer-ikea-in-india-an-operational-analysis
https://www.livemint.com/Industry/aid4AZ29vWVw4Uqg3ppaCK/Ikea-plans-to-double-product-sourcing-from-India-by-2020.html
https://www.researchgate.net/publication/340001625_SEMINAR_PAPER_IKEA_Business_Strategy_in_India
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india/