IKEA's India Strategy Overview
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Questions and Answers

What significant change is IKEA implementing in its first store in India?

  • Offering discounts on all products for new customers
  • Eliminating self-assembly options for all products
  • Creating an in-house furniture-assembly team (correct)
  • Introducing only Swedish cuisine in their restaurant

    • Which of the following items is specifically mentioned as being tailored for Indian preferences?

  • Standard bookshelves
  • Flat-screen TVs
  • Portable baking ovens
  • Lunchbox sets for multiple-course meals (correct)

    • How many full-time employees will be part of IKEA's in-house assembly team in India?

  • 75 full-time employees
  • 150 full-time employees (correct)
  • 200 full-time employees
  • 500 full-time employees

    • What is one of the requirements foreign retailers must meet to operate in India?

    <p>Acquire roughly a third of their store merchandise locally</p> Signup and view all the answers

    Why has IKEA delayed its opening date in India multiple times?

    <p>Because there is still work to be done on the store</p> Signup and view all the answers

    What dish is NOT mentioned as being offered at IKEA's restaurant in Hyderabad?

    <p>Pasta with meat sauce</p> Signup and view all the answers

    What approach did IKEA take to understand Indian consumer behavior?

    <p>Set up a makeshift store and conducted home visits</p> Signup and view all the answers

    What demographic factor is IKEA counting on to drive demand in India?

    <p>An expanding middle class and young population</p> Signup and view all the answers

    What was the estimated size of India's home-furnishings market as of March 2018?

    <p>$34.45 billion</p> Signup and view all the answers

    What kind of products will the new IKEA store in Hyderabad prioritize based on research?

    <p>Dining-room furniture</p> Signup and view all the answers

    Which of the following items is priced under $3 in the Indian IKEA outlet?

    <p>Jewelry box</p> Signup and view all the answers

    What has Nitin Pai expressed about the arrival of IKEA in India?

    <p>He hopes it will create better options for consumers.</p> Signup and view all the answers

    What type of service will the Indian IKEA store offer to customers?

    <p>Sewing service for custom curtains</p> Signup and view all the answers

    Why is the Hyderabad store's restaurant significant for IKEA?

    <p>It has the largest seating capacity of any IKEA restaurant to date.</p> Signup and view all the answers

    How many home visits did IKEA employees conduct to understand Indian lifestyles?

    <p>1,000</p> Signup and view all the answers

    What was a reason for IKEA's global sales growth slowdown?

    <p>Heavy investments in e-commerce and new channels</p> Signup and view all the answers

    What is a significant reason for many Indians hiring carpenters for furniture-related tasks?

    <p>Preference for custom-made furniture</p> Signup and view all the answers

    Which strategy is IKEA implementing to adapt to the urban landscape of Indian cities?

    <p>Establishing smaller, city-center stores</p> Signup and view all the answers

    What was a key feature of IKEA's acquisition of TaskRabbit?

    <p>To offer in-home assembly for furniture</p> Signup and view all the answers

    How does Ashish Singh view IKEA's upcoming competition?

    <p>He is unconcerned about IKEA's impact on his business</p> Signup and view all the answers

    What is one of IKEA's anticipated challenges in capturing the Indian market?

    <p>High consumer demand for customized furniture</p> Signup and view all the answers

    Which material is Mr. Singh's Furniture Point store primarily known for using?

    <p>Indian teak</p> Signup and view all the answers

    What aspect of Urban Ladder's furniture design aims to cater to Indian conditions?

    <p>Use of glass fronts for bookshelves</p> Signup and view all the answers

    What is indicated about the competition in the Indian furniture market?

    <p>Thousands of small shops and carpenters are prevalent</p> Signup and view all the answers

    Study Notes

    IKEA's India Strategy

    • IKEA is opening its first store in India, Hyderabad, next month.
    • The store will have a team of 150 employees to assemble furniture, a change from their usual model.
    • This change followed research that indicated many Indians were unlikely to assemble furniture themselves.
    • The store will feature items tailored to Indian preferences, including lunchbox sets, pans for Indian flatbread, and mattresses with coconut fibers.
    • The store will have IKEA's largest restaurant to date which will serve Indian dishes like samosas, biryani, and Swedish meatballs (with chicken or vegetables).
    • IKEA spent years studying Indian consumer preferences.
    • They've conducted 1,000 home visits to understand Indian needs.
    • IKEA will have a 1,000-seat restaurant emphasizing Indian cuisine.
    • The store aims to offer affordable furniture and other products suitable for the Indian market.
    • IKEA's Hyderabad store is 400,000 square feet.
    • IKEA aims to have online service along with the physical store to serve Indian customers
    • IKEA considers India a crucial market, important for future growth, but is adapting its strategy to local preferences and needs.
    • IKEA will have a wide range of affordable products, including furniture, jewellery boxes, doormats etc., suitable for Indian customers.
    • IKEA has trained carpenters using Urban Clap (online marketplace) for assembly needs.
    • IKEA's smaller stores are planned for Mumbai, for a more localised experience.

    IKEA's Challenges in India

    • IKEA faces fierce competition from local furniture shops and carpenters.
    • The Indian market has several tiny shops and local carpenters who are skilled at building furniture according to specific customer specifications
    • Existing home furnishing stores are well-established and allow customization
    • Indian customers have varying needs and preferences, making it difficult to appeal to everyone with a "cookie-cutter" approach.
    • The country is diverse so retailers need to be flexible.
    • IKEA has faced difficulties with regulations regarding foreign investment, which delayed the opening of the store twice.
    • Heavy investment in e-commerce has impacted global sales.
    • The store opening was delayed several times because of regulatory hurdles related to foreign investment in the retail sector.

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    Related Documents

    IKEA's India Strategy 2018 PDF

    Description

    Explore IKEA's strategic approach as they open their first store in Hyderabad, India. The store features furniture tailored to local preferences and includes a massive restaurant serving Indian and Swedish dishes. Discover how IKEA adapted to Indian consumer needs through extensive research and unique services.

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