Why IKEA's Failed In INDIA
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- เผยแพร่เมื่อ 7 ก.ค. 2024
- IKEA can be found all over the world, from Shanghai to USA. But there is one continent that was uninterested in the Furniture Retail giant. Indians largely rejected IKEA attempted takeover, which led to an embarrassing retreat for the brand.
Check out the video above to see why IKEA's is flopping in India.
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Why IKEA's Failed In INDIA:
00:00:00 Introduction
00:01:12 History
00:01:35 Market Size
00:02:00 Reason 1
00:02:54 Reason 2
00:03:45 Reason 3
00:04:36 Reason 4
00:05:10 Conclusion
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The IKEA concept doesn’t fit with Indian concept of furniture. IKEA makes furniture that should be replaced in 5 to 8 years and Indians buy furniture that lasts for the next 7 generations. 😂😂😂😂😂😂
OMG ..such an under comment. That's the truth!
More importantly the furniture Ikea sells is particle board crap which not real wood. Its mashed up, glued and baked wood chips the are a by product of cutting, sanding and shaving off that happens when real wood is mended to make stuff, hence the flimsy quality. In india furniture traditionally was made with real quality wood. SIMPLE
@@ganeshsuribhotla1684 well, it is not that bad. My IKEA kitchen is working very well even after 15 years. It’s time to replace not because it is damaged, but I need a new style kitchen. Furniture style changes every few years, and we just go for a replacement.
@@amogharsMy IKEA furniture in Europe was crap. It started falling apart/ tearing apart in 3-4 years.
@cerveauy8782 IKEA kitchen is not for a family with kids. I am single and I take care of everything in my flat.
India does not change for global brands. Global brands need to change for India to survive. The more they change, the more they'll thrive. Ask Unilever, McDonald's and P&G.
By change, these other brands sometimes relaxed their quality and also adapted to india consumer's demands. IKEA was a very good brand, but they were just too expensive and did not give value for money, and consumers could find better options. If IKEA keeps same DESIGN concepts but uses indian local carpenters, then they can be very successful , as indian furniture is mostly lacking in design as well as quality. IKEA just did not succeed in using that as they did not get the right indian people to help them KEEP OWN DESIGNES but get local materials and workers. They relied too much on less thoughtful Indian management people who DO NOT UNDERSTAND DESIGN at all. They only have knowledge to do hera pheri and jugar like in most indian companies management. ...
IKEA is for middle class and we have a very small population of middle class
McDonald's still failed...ask dominions the only profit makers.
Hello Mr. Sujan Roy - Head International Business, PVBU
Take 100 and give scrap material and name it after an english word.
Kelloggs came to India in the mid 90s to switch the typical Indian breakfast to cornflakes. Years later we have kellogs selling upma😂😂 there you go.
man that's savage🤣🤣🤣
Fuck that’s a good point,
Cereal is shit in between, extremely unhealthy
its like no matter how many toilets modhi build they always go to the streets to shit
And here I thought that the reason why IKEA didn’t do great was because India prefers their own unique artisan products produced by locals.
IKEA hasn’t failed, it’s getting started. They just announced expansions.
We go to IKEA check out the designs and make it with our carpenter using strong indian wood. Most Indians we operate like that.
😂🤭☺ ... well ....🤫
1000% true
Indeed, we do it also in indonesia
Yes, steal ideas. We are very good at it.
@@aparajita1in it is mutual. They stole hundreds of things from here and let us impoverished.
Why Ikea's failed in India.
Because my grandma's dining table works just fine
And thankfully some of us haven’t fallen into the ‘aesthetics’ crap😂
Lovely 😍
And i live in the same house as my father and grandfather
The wood...Indians know the value of wood. Ikea has great designs but Indians value functionality and durability more. We also like it installed.
@@arturns902 Wont you like anything free. Anyway, where did you this free alternative to Ikea
You nailed it
@@arturns902what a messed up comment . Makes no sense
Indian carpenter's products are of top quality compared to the crappy products of Ikea. I bought many products from Ikea in Canada, but they lasted only a short time, and their products are not high-quality craftsmanship. At my home in Kerala, we made our pieces of furniture using rosewood and teak, which are solid and will last for at least 50 years. We have already passed 20 years with no issues. We only have to polish them every 5 to 7 years. One main effect of Ikea products is the joints are joined using metal screws or nails, which will not last long, while in India, carpenters use wooden nails at joints which last longer. Also, Ikea doesn't use Rosewood, which is best for making furniture.
Well it depends on the people. There are many who don't want a furniture which lasts for 50 years as they want latest models. It is like cars. People change it every couple of years for latest models.
IKEA has crappy products, but they are better than the average local marwadi sourced products & carpenters are worse than DIY. Obviously, we are not comparing the same levels. Real wood/real carpenter is not comparable to IKEA - even pricewise.
@@meta5291 Ikea can never justify price it charges , for the same price you could get a solid and better quality products in India . Ironically in europe , it is known as cheaper alternative to local furniture shops .
@@abhinay4200 May be. But it is not been my experience. Like I said IKEA products are crappy, but I'll take them any day over similar crappy products sold by locals and made by local carpenters - not to be compared with high quality, real wood made by real carpenters, both of which i can't afford. In India, you get world class products made or imported for the elite, it has always been available. For the middle class, you have to rely on a brand, IKEA is good enough.
Fact : Rosewood takes 80~100 years to grow to become timber.
IKEA hasn’t failed, it’s getting started. They just announced expansions.
I agree.. We welcome Ikea. But Ikea needs to improve its quality of wood.
No
Exactly!! It is gaining momentum and expanding to more cities
These TH-cam channels are really clueless.. almost all companies are entering India with each passing day and they are saying ikea failed 😂😂
@@navalfa7291I doubt there's any wood. It's mdf type stuff. It's supposed to be dirt cheap. It's not a fancy brand, throwaway stuff for throwaway prices. That said, it's much better than desi carpenter making awful stuff - because wysiwyg with IKEA.
Ikea has disposable furniture that is expensive and irritating to assemble.
Indians want furniture that never get damaged.
In our house furniture is 65 years old and still working fine.
I can relate to this. In our house we have a chair which has come 4 generations now and still in good condition.
@@keerthiv5702we have a grandpa chair one one baby bassinet that’s almost 250 years old now.
Since babies are born everywhere, we just keep sending it to couples who had a baby. When the baby grows they return it back to us.
It needs a once 15-20 years maybe new polish/varnish or needs screw tightening.
Apart from that it’s super sturdy and heavy. So even if your baby learns to stand it won’t start swinging which would cause the baby to fall😊
And the grandpa chair, whose legs are curved so you’re swinging in the chair while you sit.
I don’t know how many monkey gymnastics we all did on it. And it’s still ready for the next generation to do monkey gymnastics on it.
Our ancestors might be cringing on the way we use it now but they would be glad we kept it around still😂
In our house, furniture is 350 years old. It has been a witness of India's history for a long time.
Ikea furniture is not suitable for humid environment. Product made of engineering wood dont last that long.
IKEA products are like fast fassion. One of their value proposition is to use latest indoor design trends at affordable price.
Most of the local furniture stores now charge GST since evading it has become very difficult to hide from the government. Even the local branded stores sell furniture and upholstery cheap as they are all locally sourced. And they all charge GST. Unbranded stores I purchase from also charge GST. So, that is not a major reason.
The types of wood used by Ikea, colour palettes, other materials etc do not suit the Indian climates. I mentioned climates in plural as the regional climates are quite varied here.
Upholstery sold by Ikea is charged at eye-watering high prices. Supermarket chains like D-Mart etc sell curtains of extremely high quality fabric and stiching at prices 10 times cheaper than Ikea. When I visited the Ikea Navi Mumbai store, I was shocked to see a single curtain costing ₹5000. Nobody purchases a single curtain. So if you have 3-4 windows to cover, it would take 6-8 curtains. That's a really expensive purchase for just curtains 😂
We got our curtains at D-Mart at a range between ₹200-400 per piece. So, in around ₹5500, I got 3 different sets of 6 curtains each. Sturdy, strong stitching and quality rings, made in India. Plus beautiful designs.
And yes, the stores are too far away. It isn't worth the cost of travelling all the way to an Ikea store to find exhorbitantly priced goods which will not last more than 2 years in this climate. Indians don't like having an "all-white" decor. We find it depressing and we cannot maintain the white colour with the amount of dust in this country! Even if we have a hired help for cleaning, it's impossible to maintain the colours sold in Ikea.
If they want to succeed here, they should first overhaul their entire inventory as well as pricing. And that is never gonna happen 😆
Wow, so beautifully explained !
Crux of the matter is, western solution will not work for Indian markets. They have to evolve and start understanding Indian taste, culture, socioeconomic structure first.
And their product quality isn't great...I have 2 cupboards from IKEA so I know this.
Thats a more practical and more useful analysis !
When I first started adulting, I got one room with one window. Checked the height and went to DMart to buy a curtain of that height. When I came home to install it, I realised I completely forgot that one curtain did not cover the entire length of the window and the same pattern got exhausted when I went to buy one more piece so I ended up with two different patterned curtains on the same window. You're right, nobody buys a single curtain if they're not dumb like me 😅.
See, I knew it. Thanks for supporting my view, sister. I knew those curtains in D-Mart were finest in quality when I went to buy them, I told the same to my parents also and they said no no D-Mart doesn't sell premium content. Thanks for putting in similar views at least I can convince them today and we can go there today itself to buy them (we've just bought a new house).
1. Quality of Ikea products in comparison with local furniture shops is also an important factor. Local shops sell high quality hard wood, plywood furniture which Ikea cannot supply in the same price range.
2. Ikea charges for the delivery and assembly, However local shops deliver furniture without any extra charges.
3. You need a full size SUV to carry Ikea furniture boxes, however the majority of Indian customers drive Sedan or Hatchback cars which have less trunk space. In western countries people can easily carry Ikea furniture in their SUV which is not possible for Indian customers.
Most people in the West use trailers for transport, which are rented out from IKEA and uncommon in INDIA.
@@johnconnor3246IKEA products are costly with bad quality. It's the main reason they are not getting a market in India.
Indian keep 5 apps for each service's to compare
For one IKEA's products are flimsy and not durable because they're mostly made of particle boards and at the most MDF. Indians buy solid, real wood furniture and keep them for generations, not just 5-6 years. We aren't furniture consumers. Furniture to us is more like an asset and heirloom. I have a few stools, chairs, and a bed that has been passed down to us from the time of my grandfather's youth.
Indian furniture industry also mdf ,plywood only...real wood cost a hell ...
You are talking about the older generation. New generation couples love to refurnish every few years.
Nope! What I found is:
1. Its nothing but a physical Amazon store, selling imports from China.
2. They sell Swedish food in canteen, so most people can only stay there until the next meal time.
3. Dead cheap products are unnecessary, necessary stuff are absurdly expensive.
4. Most people don't understand their design language, and buying few products off the shelf didn't get along with our existing home setup.
Yaa.. its mess!
IKEA uses compressed and glued wood for furniture. In Indian households, real wood is preferred as it lasts for decades. IKEA furniture, made of wood or MDF, is considered cheap and won't endure well in high humidity, leading to mold formation within one to two years of use. For the same price, it's better to invest in real wood furniture that lasts longer than fancy glossy synthetic wood.
IKEA products need to be assembled. This is not in line with Indian culture where you expect someone does that for you.
Is it because of looking down upon physical labour?
@@parvadhami980not looking down . Providing jobs to others . In IKEA you have to do it separately
@@parvadhami980 I will buy a furniture not "parts" so that someone or myself has to assemble it and make sure the quality matches to the price... for the thing I'm not an expert, I will hand over to someone who is capable of and I'll PAY for his/her service.
@@shubhankardasgupta4777 That is because labor is cheap, and you can afford it. The same you would readily do everything yourself once you land in USA or Europe 😂😂.
Indian market is very difficult to understand. The foreign companies have learnt the way in which western countries' markets work, but that isn't the same here. First of all, the customer base is not 1.4 billion, rather some 200-500 million people who earn quite moderate/rich and can spend money by trying things. Secondly, people in India, don't really use credit cards and heavily use debit cards/upi. So they buy when they have money to spend. Third, the local shops are very much familier with the customer which gives the customer a chance to bargain with them. There are very many reasons for their failing success!
It has boring furniture and only a few good options. It does not meet the taste of regular Indians.
True no intricate carvings like Indian artistry
India is service oriented and does not like DIY things. Also service is is generally free or is included in price. Unlike IKEA which charges extra. Thus reducing customer experience
We don't typically use cardboard furniture for our homes; instead, it's commonly utilized for school projects.
I noticed in Ikea that most of their items were imported from outside mostly from China. They don't have supply lines in India. On other hand, local market gives more variety appropriate to Indian tastes.
very simple,all my house furniture was built to suit our house from local furniture shop.They are good wood not this engineered wood crap.
In the west Ikea is big on design weak and cheap materials therefore low on cost.
In India they kept the design and low quality but priced at a premium.
India can do with the design expertise but for more localised tastes.
Also we only buy sturdy stuff..
We do not change furniture every year.
India does not need IKEA!
Their furniture's are very expensive, confusing and made from china a perfect recipe for disaster. If Ikea wants success they should have indian oriented furnitures suitable for our needs and not just western oriented dumped products, and also make in india will further reduce costs.
IKEA was disrespectful and arrogant to make the cultural adjustments needed to enter the Indian market.
Apart from the greatness of Indian market and proud to keep furniture for generations. Another major point that no has mentioned Ikea's designs doesn't suit our ugly houses. We are not worried about the aesthetics as long as they are cheap and functional.
Ikea's entry level products are of inferior quality(type of material used) but also expensive compared to same furnitures that come from China. You will find better quality furniture at your NEAREST furniture store for a better price.
Also Ikea's furnitures aren't yet affordable for the college students in India, like it is in the developed countries. "yet" being the operative word, students will be able to afford these furnitures in the future because of the India's growing GDP per capita.
So currently Ikea will struggle a bit, but if it persists, it will reap the benefits when India and Indians grow stronger economically.
they do racism towards india and indians in the west , so no way that kind of attitude will work in india ?
In my local IKEA store, majority of products are Made in China, but sold at pretty steep price points. Good luck surviving in India market.
Chicken franchise KFC wanted to open outlets in Gujarat, and their 70% menu is vegetarian. MCD’s big part of menu is vegetarian. Basically, if Ikea wants to sell in India, sell items which are made of real wood and durable. Most Ikea SKUs are made of compressed cardboards. Cheap materials & still they take same rate as real wood furniture.
IKEA restaurants are the only part of their business doing well I think. Have seen huge lines for their biryanis and meat balls in Hyderabad ikea
In Bangalore there is already big market of indian preferred furniture showroom
1.royaoak
Jodhpur furniture
Urban ladder
Theor are 50such companirs already amd then come local furniture shops which is present in every mainroad
honestly speaking I go ikea worli Mumbai just to eat chicken meat balls. never thought of buying furniture. I think Ikea should convert furniture stores into a huge food mall.
Ikea should start in kerala where people having more purchasing power and high living standard
Idiot...who will deal with labour issues😂😂
Furniture is something where physical touch is important for many buyers. Even with small shop format, online catalog will not help without physical sample. Also, for bigger purchase, people want same day delivery.
Couple of items online from IKEA were of bad quality, no way to return them, I have to go to their store.
Thought all their items are top notch, but not so.
The "pricey" furniture IKEA sells is no where to the quality of the furniture even an unbranded Indian local market has... Indians always look for longevity before buying... So, think differently... A better approach would be to have the designs online and manufacture it based on customer preference of materials and deliver it....
I don't feel IKEA failed in india, i am visited Hyderabad store, and I can see decent purchases happening from the customes may be it not too much, but they can be sustainable in the market.
In india it's impossible for ikea to sell
Coz everything is available in local at 1/2 price to IKEA even in good quality
But IKEA can buy it from india and sell to world for profit win win situation for both...😍
Most importantly just like food firms have to change their menu, Ikea will need to change their designs based on local tastes too. Indians like really good looking furniture with intricate details, and Ikea is very vanilla/bland.
I can describe most indian furniture design as gaudy.
Should have added that ikea paid big money to build a direct connection from the metro station to ikea in bangalore
Most Indian customers prefer durable furniture made with hardwood like teak which would last more than 40 years. Most of IKEA's furniture is made using particle board which won't last long.
Well they haven't even started there full operation across india yet. So what made you guys think of it?
Godrej Interio is a very good if you are opening an office/furnishing an appartment in India - quality is comparable - the trouble is stuff that is not in stock take > 3 weeks to deliver.
Vocal for Local ❤❤
The rainy tropical weather of India especially southern parts and east may not be suitable for particle board furniture. But it may help singles living in hostels and small apartments f temporary.
IKEA IS TOO EXPANSIVE for average indian.
We are already have Pepperfry and Urban ladder for flimsy particle board furniture to last a few years
background music volume is big and cant hear the narration properly - editors pls keep the background in way that we can hear the narration clearly
The video spoke about everything except for the one main key differentiator which is the quality of products. IKEA products are mainly made out of engineered wood, a quality which we don't necessarily like since it doesn't last beyond 5-6 years. Indian consumers generally prefer long lasting furniture products made out of sheesham wood (or similar/better quality of wood).
Thanks for explaining the reasons behind IKEA's current losses in India. There's a key point missing in the video's example about cost and pricing between IKEA and local sellers.
Unlike local sellers, IKEA incurs Integrated Goods and Services Tax (IGST) on furniture imported into India, similar to a tax on goods moving between states. Then, IKEA pays GST again when selling the furniture to consumers.
So, even if IKEA and local sellers buy furniture at the same cost price, IKEA ends up paying significantly more in taxes. This is a major disadvantage for IKEA compared to local competitors, who can often provide assembled furniture or free assembly services, adding another layer of cost to IKEA's DIY model that customers may not prefer.
Durability is what Indians love. Long lasting product. IKEA need to think on durability over design and it will sell.
I went to the ikea store in hyderabad it infrastructure is amazing id you see from outside it doesn't look that much big but when you go inside there is not way to go out you have see all the products but after reading about all the business case study i would say that from middle class people organization earn revenue because in india there population is more .
So come to the Ikea there products or designs are amazing but for middle class people they prefer quality and there quality are not that much good its good for people how shift to another city and they want furniture immediate but not for the home because for indian furniture is a long term assets
What are you talking about. The IKEA in Mumbai is always crowded
a success in only one store or city doesn't mean it has succeeded...i'm sure IKEA thought it would expand in the whole country quickly considering India's growing economy and a large young population
@@janejustin1788 IKEA hasn’t failed, it’s getting started. They just announced expansions.
IKEA is super expensive in india compared to local competetion. Its not just about 18% GST issue - prices are almost double or triple compared to local markets.
They should have opened stores in Chennai, Pune, Gurgaon, Noida, Coimbatore, Ahmedabad and Delhi.
People are recognizing IKEA and have started warming up to concepof disposable furniture. It's working well in metros where you have lot of people staying on rent. Also Mumbai builders are offering projects which are furnished by Ikea.
They are crap.
Most good builders steer away from ilea because once the buying party realises all his interiors is from ikea, they ask the builder not to fix the interiors and rather reduce the cost from the flat.
And in Mumbai people buy house to stay. Few to rent but mostly they do live in them.
They will do well if hey enrol lakhs of traditional carpentars to become their assembly partners for a percentage just like uber rapido.
Local Indian Carpenters make furnitures that last a lifetime.. buying readymade furniture is not a concept here for most part.
Apart from the obvious reason everyone stated which is ‘ikea furniture is processed wood chipping a glued together and priced at high cost. And Indians prefer sturdy furniture to last for decades.
We also haul our furniture to wherever we move. Unlike in the USA where transportation costs are more than the cost of all the items combined together.
So we actually pack our sofas, dining tables, chair, beds via packers and movers and take it wherever we go.
Ikea products are light and easy to relocate. But indian Mentality they look for product which can sustain for years. Example IKEA beds may survive max till 5 to 6 years. But local furniture's in india survive more that 10 years.
Ikea failed in India ? Idk what you talking of literally Every household and Cafes in Hyderabad is stacked wirh Ikea goods.
Indians have furniture store in every street. This is not USA or europe where competition is less. Also these local furniture store cater to the audience as per their requirements.
India has a lot of good carpentry workforce, that can make hard wood furniture that can last a decade or two.
Obviously ikea is not going to rule the furniture market of india. But i can see its presence setting up in tier 1 urban cities. I mean upper middle class in mumbai now has started preferring ikea more
In india most people prefer real wood over mdf. Also wooden furniture is affordable and durable. Ikea cant match up to ethic styles like jodhpuri teak wood furniture 😊
great designs to admire but looks cheap as compared to solid wood available at similar prices.
This looks like a pretty old video/analysis on IKEA. It started doing a prettydecent job in Hyderabad since it was set up a few years ago.
Half the people in Hyderabad go there to eat the biryani.
Or if at all but their kitchen products😂 like glasses and spoons and white coloured plates.
Maybe even firming tables and chairs. AT MAXXXX sofa.
But cupboards and beds are absolutely low quality.
It's not right to say small and medium enterprises doesn't provide bills and escape indirect taxes it's just that they source from India only so they don't have any import cost and there operational cost is much lower compared to a big corporate like IKEA.
Because ikea is not cheap for indians.
IKEA cannot sell with two stores. It can only show, which it did well.
IKEA is selling chicken Tikka masala and paratha in Bangalore 😅😅😅
In addition to all the comments here id like to add that india is changing,young people now have more money to spend in all of indian history and they want to spend it.Thats their market,not a grumpy 50 year old dad.
you missed the most important factor, the quality of cheap furniture is far superior and durable for generations compared to a higher priced ikea. in india you have to not only sell cheap but with premium quality. a 10000 dollar chair in usa can be bought with around 50dollar from a local vendor in india. so why should anyone pay more for bad quality in india
The quality of IKEA can not compete with local furniture in India. In other countries there are not many options for local players however in India, it's the other way around.
Everything in IKEA was substandard. Furniture were just filled with cardboard or sawdust and finished like teak. Much better products were available in product based retail stores.
Not sure about local vs global or other bigger "business ideas" floating here but here is one honest opinion. The furniture from IKEA are Ugly. It is more of a urban vagabond Lego style design which just does not match with the aesthetics in most Indian homes. For us, furniture is mostly one time buy, may be 2 times but in a full lifetime. I find no reason to put money in those new age yolo kind of Lego looking stuff. IKEA's design sensibilities just don't cut it for me. If "a table is just a flat board over 4, ohh no 3 legs" is the definition of table then it's going to fail. I look to buy a great aesthetic furniture once in a lifetime and no, I am no way into "subscription in furniture" model or let's buy a Lego to get bored with in 2 days thing at all. I don't need another yolo office space in my home. Here is something I as an Indian did learn from our global counterparts which is don't bring the office to home! I haven't even discussed the wood quality of IKEA which is tad bad. I understand for IKEA it makes sense to use the kind of wood they use for max say 2 years life but as I said above, I am looking for a generational furniture. Till the time I don't afford it, I can go about with life without the overpriced IKEA stuff for the kind of cheap wood they use. Put it shortly, most us Indians, know about wood and it is hard to hoodwink us about wood. The market for IKEA in India is a one time buy for each 25 year old when we all make that one newbie mistake of a buying decision.
Press wood , Chinese made and still expensive as compared with local Indian made furniture. Fire the IKEA CFO and CEO who decided to enter Indian market 😂😂😂.
IKEA needs to change their management folks in India.
1. Localites living in cities would prefer to buy furniture that's made of High quality wood, lasts for generations, don't prefer assembled stuff. this group would not prefer IKEA nor any assembled products.
2. Migrant white collar workers in a city are the ones who are looking for readymade or assembled products made of particle boards. Did IKEA reach out to these customers? I never saw any major advertisements or marketing campaigns done.
3. IKEA stores are predominantly available in North India, only one store in South & none in northeast. They should have started in all metro cities first.
4. Btw, usually while constructing the House people opt for individual civil engineers not some famous builder. Builder does hard selling of corporate goods, individual engineers leave it to the choice of owner. the House owner would buy the wood needed for the House(door, window, etc), hire a carpenter & get things done. It's more practical to get the furniture for the House made at this time itself. This is more expensive than the store made products, but still people opt for it, coz this arrangement is more flexible. This group would never opt for assembled products.
This scenario was never considered in the video.
Ikea stores in N. India Bhai kahan in N. india
@@guru85vaale type in English please.
Check the website for store locations before commenting
I planned to purchase a bed in bangalore. When I visited Ikea, the bed which cost was nearly 15K, I could lift with one hand. It felt like it's gonna break in 2 months. The only thing that I liked was the finishing. I decided to purchase from a local shop. The quality is far far far..... superior. However in my hometown I could have found bed even better quality wood.
Now was thinking how ikea is able to do business in india. Now I know I am not alone.
Now Indians are planning for marble furniture better then woods lasts for generation
Already started in some part of India
Wow..ikea failed in India????? Its a shocker to me... ikea just failed to open at the most consumer state in India.. they missed the bus for kerala or kochi. Ship it across kerala and you will end up atleast 3x of your current business.. don't forget a quality customer care.
They just started. They still got 22 stores to be opened. Kochi trivandrum on the way
Why would i buy an expensive furniture made of powdered wood? I would rather buy solid wood furniture at the same price at the local market or known Indian stores.
Ikea got good designs but poor recycled materials are being used which is a big "NO" from indians who like their furniture to be made out of
"Real and strong" materials which last for generations so they turn to the local carpenters and sometimes if they like they pay more than needed for the quality and durability
The bland Scandinavian aesthetic won't work in India. Indian decor is something else. Its got a "jhanki"/"jhakpak" flair to it. We like some antique, intricate details in our seating and tables, especially if one owns the house. In rented apartments you do see Ikea-like furniture more often since its cheap and replaceable (no offense) I think ikea is cute and functional though
Ikea sells high quality internationally designed products and they are durable if maintained well. Yes, most products are compressed wood and not hard wood so more environmentally conscious. They are geared for the upper middle class clientele who appreciate fine quality.
Why noicy music is added to video making it more difficult to listen and understand the real meaning of news.?
Not just Ikea, but many car manufacturers failed in India as well, the average Indian earns less than $400 USD a month., they simply can't afford it.
IKEA isn't for everyone. But even if only 5% of those who can afford it are considered, that's more than the populations of many countries.
IKEA is struggling because its products are made for European homes. For success in India, IKEA needs to redesign for Indian households.
You don't know the sales if mercedes and Lamborghini here
@@ganeshnhFunny thing is, those who buy Mercedes and Lamborghini, they don’t even look at cheap IKEA furnitures 😄
They can afford real polished wood, even for their floor.
Can't afford 😂 bro we have better consumers, richer than population of some western countries.
you have triggered some loudmouths
Recently went to one of Bangalore IKEA showroom. But soon I realized my local carpenter has better designs and better wood quality than IKEA😊 IKEA is not for Indian markets
True , it will take time, but will eventually succeed
I have visited IKEA stores, first in Dubai and then Hyderabad. As a Bhartiya, the moment I first completed my IKEA store visit, my first reaction was "nope, they won't work in India" because their furniture was just too western. I've seen the kind of beds I've slept or my parents have used all their lives, or the kind of chairs and sofa sets our family has used and IKEA was nowhere selling that kind of stuff. Only the commercial office based furniture looked somewhat on point.
If they want to enter Bhartiya household, they have to make stuff that we use or we will prefer because for us, we are less concerned with the brand of furniture and more laser focused on our needs as a family since in any case we visit 20 shops before buying one sofa set.
india market simple if u focus on cost , quality , need
There are gazillions of local carpenters and local established furniture stores of various quality. Then there are companies like Pepperfry and Urbanladder for middle to upper middle class. I bought from both and they are excellent -: product wise and experience wise. Then there is obsession with certain types of wood for furniture. Ikea's strength is neither price nor quality. It's strength is design and DIY. DIY is not a USP in India and design is getting copied.
IKEA furniture and products are very high price and not affordable to common people....middle class.....but also same and more Quality are available in local market with low price with more durability than IKEA with out Tax....
They did not study Indian market. I have visited IKEA, but their prices are high compared to Amazon, Flipkart when products are same. Why such big difference in price ? It's not just local shops without bill, please check again. Even online stores provide GST bill with warranty yet the IKEA prices are way to high.
Now coming to DIY, present generation Indians do know how to assemble things themselves. TH-cam channels are available for that. Work on your price first
Amazon is cheaper even in Europe and US. So it can't be just about the price.
My analysis was only on Indian market. I don't know how big IKEA is in Europe or US so definitely when it comes to India, pricing is one of the key differentiator@@siddharthkanjilal1778
@@siddharthkanjilal1778My analysis was only on Indian market and not US or Europe. Price is the biggest factor in Indian market especially when there are other avenues to compare so easily and then Quality too. Majority of their wood is engineered(particle wood) then why pay such high price for engineered wood
There is a generational change in India. The older generation was very fixated on low cost and high quality of wood. The current generation is much freer is experimenting with new designers which are plain vanilla and save space. The best thing about Ikea that I found was that if you have a car then the items are very unique and space saving. The real quality is top-notch even though the wood might not be of highest grade. Ikea tase will slowly grow in India over time. In India nothing happens fast. One thing Ikea can improve immediately is add more Indian traditional design and at least some products of high grade Indian wood to improve perception that the quality is not good. Make in India for wood products in a must to understand local taste and bring cost down further or improve margins. Personally a big fan of Navi Mumbai, India.
Indian market is mostly value for money with good quality..
You captured all points very well.. we dont like to drive long to but furniture when my dad’s friend has furniture shop and they will send the furniture to Home without any cost.. set up the whole thing and you can pay him in instalments.. in india relationship sells as simple as that….
India is bkessed with such good fertile soil, we have so many different kinds of wood unlike the engineered glued wood cardboard piece