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SEMINAR PAPER IKEA Business Strategy in India

Research · March 2020

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SEMINAR PAPER

IKEA Business Strategy in India

Submitted at:

FH JOANNEUM University of Applied Siences

Business Development and International Marketing

Submitted by:

Shuporna GHOSH

Table of Contents

TABLE OF CONTENTS ...................................................................................................... 2

1. Executive Summary .................................................................................................................. 3

2. IKEA Overview ........................................................................................................................... 4

2.1. IKEA Vision ............................................................................................................................ 4

2.2. IKEA Corporate Culture ...................................................................................................... 4

3. Overview of Furniture market in INDIA ................................................................................. 5

4. IKEA in India ............................................................................................................................... 7

4.1. PESTEL Analysis.................................................................................................................. 7

4.2. Porter’s Five Forces .......................................................................................................... 12

5. Global Business Analysis – Why India?............................................................................. 15

5.1. CAGE Framework Analysis .............................................................................................. 15

5.2. Blue Ocean Strategy .......................................................................................................... 18

5.3. Porter’s Diamond ............................................................................................................... 20

6. IKEA Strategy in India ............................................................................................................ 20

7. Conclusion ............................................................................................................................... 22

2 Seminar Paper BDIM January 2020

1. Executive Summary

IKEA is known globally for its low prices and innovatively designed furniture. In India, it

ran into several problems, such as Foreign Direct Investments (FDI) and setting up the

physical stores in the large country like India. This case study analyses how IKEA

adapted its strategies to enter in India and how it can expand in the country.

IKEA has considered doing business in India for years, having first established a

presence in 2007, only to run into a raft of regulations limiting foreign investment in the

country’s retail sector. This paper aims to capture the essence of India as a marketplace

and consumer psychology analysis, the growing purchasing power and rising influence

of social media have enabled Indian consumers, making India an aspiring emerging

market for global businesses.

Survey titled “What is the biggest barrier in doing business in the world market” figured

out eight problems which include “law, price competition, information, language, delivery,

foreign currency, time differences, and cultural differences”. In this paper we shall

analyse most of these factors along the lines of business strategies for IKEA

collaborating with the macro enviornment, and over all industry in India.

IKEA has been quite successful with its “one design-suits-all” global expansion strategy

in many markets. Anders Dahlvig, former CEO of IKEA, had once said, "whether we are

in China, Russia, Manhattan, or London, people buy the same things. We don't adapt to

local markets." Operating in a country with the culture base different from the corporate

culture could bring many challenges to new emerging markets.

IKEA, with the opening of its first store in India (in Hyderabad) has paved way for a

completely new experience in furniture market for Indian consumers. The purpose is to

reflect on how IKEA fits into the Indian consumer market, where future growth is likely to

emerge.


2. IKEA Overview

Founded by Ingvar Kamprad in 1943 as a tiny Swedish mail-order catalogue business,

today IKEA is world’s largest furniture retailer, known for its reasonably priced functional

furniture.

Ikea has over 360 stores spread out over roughly 50 countries. 2013 was a record year

for profits, with global sales coming in at almost 28 billion euros. While Europe makes up

most of the market for IKEA, the company has seen strong growth in North American,

China and Russia. The company is looking to expand further afield into new geographic

locations in the search for even more growth. IKEA wants to approximately double sales

by 2020 and one logical area to find new opportunities is in emerging markets.

In India, while the potential for over 1 billion new customers is attractive, there is also a

whole host of serious challenges that the company must face.

2.1. IKEA Vision

“To create a better everyday life for the many people“ with the vision of IKEA and the

business idea “to offer a wide range of well-designed, functional home furnishing

products at prices so low that as many people as possible will be able to afford them”,

the company prides itself for working hard to achieve quality at affordable prices for its

customers through optimising their entire value chain, by building long-term supplier

relationships, investing in highly automated production and producing large volumes,

beyond home furnishing.

2.2. IKEA Corporate Culture

Globally IKEA’s policies and cultures are standardized. The strategic decisions are

centralized, they train their co-workers as per their policies. IKEA prefers communication

skills and organization’s ethics instead of academic qualifications. IKEA’s standard

values are - humbleness, equality and simplicity.

IKEA trained managers act as missionaries and spread the cultural values to coworkers.

There are more women than men working on the IKEA sales floors, and while the share

of women is slowly increasing in some management categories, the balance is far a far

fledged goal for them.


The characteristics of IKEA’s culture can be witnessed, where people often wear the

same uniform or casual dress instead of suits. Titles which shown the position are not

used in the name badge or in the way IKEA’s people call each other. They prefer the

word “co-workers” instead. Responsibilities were the key for distinguishing co-workers;

an evaluation system based on personalized yearly goals and broad guidelines is used

to evaluate employees’ performance.

IKEA people are encouraged to be independent, willing to learn, willing to listen to others

and know how to transfer and share their knowledge to others while not feeling they are

any better than anyone else. In exchange, they are offered by IKEA a pleasant working

environment; job security and a caring attitude to employees IKEA believe in each

person’s ability to develop and grow – both personally and professionally.

Diversity and inclusion are essential for IKEA business success - meeting customers,

developing co-workers, and cooperating with their global business partners. IKEA culture

promotes togetherness and encourages an individual to add value to the team and to

trust their people and treat equally.

3. Overview of Furniture market in INDIA

Global Furniture Market

• Revenue in the Furniture market amounts to US$205,395m in 2020.

• The market is expected to grow annually by 5.1% (CAGR 2020-2023).

• In global comparison, most revenue is generated in the United States

(US$261,496m in 2020).

• In relation to total population figures, per person revenues of

US$148.84 are generated in 2020.


According to a study by World Bank, India’s organized furniture industry is expected to

grow 20% per annum over the next few years and is projected to cross $32 billion by

2019. Online home décor market in India is projected to grow at a CAGR of 50.42% in

revenue and the luxury furniture market is expected to garner $27.01 billion.

India’s home furnishings market is largely served by informal mom-and-pop outfits, so

called unorganised retailers. However, gradually bigger companies are increasingly

gaining share.


4. IKEA in India

India is the 37th entrant amonsgt the countries IKEA is doing business with. While IKEA

operates through owning the stores in 24 countries, the rest are franchised or owned by

other business entities. However, given the complexities of setting up business in India,

as an emerging market, it was not wise to replicate the business model of other countries

to India. As the potential for over 1 billion new customers is attractive, there is also a

whole host of serious challenges that the company must face, this market.

The macro enviornment consists of broad enviornment factors that impact to a greater

or lesser extent many organisations, industries and sectors. Likewise, It is critical to study

the macro enviornment for IKEA in case of its presence in a country like India, which

comes with its own share of challenges and opportunities.

Each country is a strategic business unit in IKEA as they are all a part of the organisation

but for which there is a distinct external market for goods or services and distinct

competitors that is different from another SBU.

4.1. PESTEL Analysis

With PESTEL Analysis, which is a strategic analytical tool used to assess the impact of

external factors on businesses, we shall now asses the potential competitive advantage

of IKEA in India. There have six external factors that may impact theperformance

and affect the strategic development of the organisation.

Political

Legal

Economi

c

PESTEL

Technology

Enviornment

Social


Political

i. FDI Limitations

IKEA tried to enter the country several times, but its attempts were thwarted by India’s

stringent Foreign Direct Investment (FDI) regulations. Until 2011, FDI in multi-brand retail

was forbidden by the Indian government and FDI in single-brand retail was permitted

only up to 51%. IKEA lobbied hard to persuade the Indian government for easing the FDI

rules in 2008, but the company failed as IKEA was clear that it would only enter India

when 100% FDI would be allowed.

In January 2012, India allowed 100% FDI in single-brand retail on the condition that the

retailer should mandatorily source 30% of their goods from India’s micro, small, and

medium enterprises (MSMEs).

ii.

Bureaucracy and Corruption

With Corruption Perception Index (CPI) of India ranking 78, IKEA had to steer through

long and bureaucratic paper work for the sanction of the business in India.

iii.

High cost of real estate, challenge in availability of retail space

Further, given the size and magnitude of IKEA stores other countries globally, in India

the entity struggled to establish its stores with the availability of retail space and its cost.

Economic

i. GDP and PPP

India recorded GDP (Gross Domestic Product) per capita of 2,717bn USD (ranking 7 th )

with an impressive PPP (Purchasing Power Parity) of 10,505 bn USD, by the end of

2018, making it an attractive market for IKEA. The growing size of the middle class in

India implies that there will be an increasing need of IKEA’s products.

ii.

Price Sensitive market

Given Company’s core proposition — "value-for-money furniture and home accessories“

to cater to the cost-conscious Indian consumers, IKEA had to cut cost of its products.

Around 1,000 items in the Hyderabad store are priced below Rs200 (2 Euro) each, which


Ikea hopes will mean something for everyone. Their cheapest item is a set of four,

brightly-coloured reusable plastic spoons for just Rs15. And, for those intimidated by selfassembly

of the famous flat-pack designs, Ikea in India has tied up with local carpenters

and delivery services.

Social

i. Population

India is the 7th biggest country regarding country size and India is the 2nd most

populated country (with about 1.3 billion people) in the World with a median age of 28

years, making it an extremely lucrative market for IKEA to make presence. The fact that

the new emerging middle class are more aware of their home design which presents an

opportunity for IKEA to expand.

ii.

Different culture and beliefs resulting in difference in lifestyle

Instead of Swedish meatballs, IKEA diners at the 1,000-seat restaurant replaced it with

chicken or veggie balls, dal and rice, or biriyani.

Textiles on sale in India, have brighter colors and busier patterns than in Ikeas

elsewhere.

iii.

DIY (Do-it-Yourself) not a concept for consumers

Indian Consumers are intimidated by self-assembly of the famous flat-pack designs.

Hence, Ikea in India has tied up with local carpenters and delivery services.

Technology

i. On-line Sales

Given the long distances in the country, IKEA has plans to offer its goods online. Hence

it has tie-ups with Amazon and its own website.

India, having the 2nd most smartphone users across the globe, IKEA stands a huge

potential to tap the Indian customers online.


Ecological

i. Electricity Disruptions

IKEA’s 2006 initiative of 100% renewable energy usage required its stores to be supplied

with either wind power or energy from solar panels. Its stores in Germany, France,

Sweden, and at forty more places used either power from their own wind turbines or from

solar panels.

Legal

i. Tariff and Tax laws

In the last year, the Indian government has reversed two decades of steady tariff-cutting

and raised import duties on a wide range of items. With IKEA’s heavy dependence on

imported goods, this is a additional potential vulnerability.

ii.

Cheap Workforce and Minimum Wage for employees

There is No Restriction or limitation of minimum wages for employees. With the stipulated

amount of funds reserved for workforce they can employee more as there are educated

and competent workforce available in cheap.


Opportunities

Threats

No inteference from

Government - 100% ownership

in the country

2nd most populous country

with the median age of 28

years. Young population

High PPP, showcasing high

buying potential of the

consumers in the market

Enviornment friend Power

generation approach by IKEA

Price Sensitive Market - Price

over Quality

No exposure or experience to

DIY (Do-it-yourself) amidst

customers. hence tie-up with

aseembers and delivery entities

making the products expensive.

Modification of products

required due to difference in

culture ethnicity and beliefs

Corruption

Availability of Cheap and

competent Labour/ workforce

Electricity Disruptions

Availability of Cheap Labour

Forecast

IKEA was very clear on its strategy to enter India with the allowance of 100% foreign

direct investment (FDI) in single-brand retail, it didn’t want to go down the joint venture

route. The emergence and rapid growth of e-commerce is all-the-more reason for IKEA

to see more of an opportunity in India. On one hand IKEA has to compromise on price


of the product on the other hand, it is will benefit by availability of cheap labour and

competent labour.

Since well-travelled Indians have known IKEA for a while now, with thriving Furniture

market in India, it is a promising business venture. India is a large and growing market

with the furniture industry worth $32 billion and projected to be double to $61 billion by

2023. Ikea has a huge potential to capitalize on this. But in the meantime, other Indian

players (such as Pepperfry and other unorganized furniture vendors) have effectively

held their ground by leveraging local knowledge and addressing the country’s

infrastructure challenges.

4.2. Porter’s Five Forces

Further to analysing the macro environment for IKEA in India now, It is imperative to

analyse the key determinant of profitability by scrutinizing the extent of competition and

the strength of buyers and suppliers. Porter’s Five Forces Framework will help us

analyze and identify the attractiveness of the market for IKEA in terms of Five competitive

Forces –

i. extent of rivalry between competitors

ii. threat of entry

iii. threat of substitutes

iv. power of buyers

v. power of suppliers

Rivalry among existing firms [HIGH]

IKEA faces stiff local competition from Pepperfry, India’s existing, largest online furniture

retailer and many local retailers like Future Group (Home Town), Landmark (Home

Centre), and Shoppers Stop (Home Stop) with Indian customer base. With the entry of

IKEA, there is hope that small and medium retail furniture market will get a standardized

structure and shape. The other already existing players may not be as big as IKEA but,

these players understand Indian customers very well simply by the virtue of being in

Indian market for long. Having developed trust factor amidst Indian consumers, the

existing furniture brands have a strong hold due to low cost of the furnitures,


understanding of consumers and traditional designs and most importantly, have the

ability to deliver hasslefree ready-to use furniture at the doorstep of the consumers.

Threat of the New Entrant [LOW]

Emergence of new entrant to compete with IKEA in not as significant as, the new market

entrants would not be able to benefit from the economies of scale to the same extent as

IKEA, at least during the initial stages of operations.

Bargaining Power of buyers [HIGH]

Bargaining power of buyers in furniture and home appliances manufacturing industry is

huge. Indian customers are price sensitive and have a stickiness towards the vendors

having long lasting trust association. The competition is intense and as such, there is a

long list of furniture retailers’ people can buy from, that too with an advantage of

hasslefree, ready-to use furniture.

Bargaining Power of Suppliers [LOW]

While Ikea has sourced cushion covers, rugs and other textiles from India since the

1970s, the country accounted for just 3 per cent of the company’s global supply chain in

2012. Traditionally, India has been supplying textiles, rugs and carpets to IKEA and

already had 48 suppliers in India. The company is getting carpets, pillows, mattresses

and even some of its popular Ektorp sofas from local manufacturers, which are also

being exported to Ikea stores elsewhere in Asia and the Middle East. Globally, Indian

suppliers sell about $400 million of goods a year to Ikea, primarily textiles.

Now the company is looking at new categories such as mattress, sofa and other furniture.

And it has already signed up sofa and mattress suppliers who have started exporting

India-made IKEA products to stores around the world. In terms of products, IKEA is now

looking at sourcing new materials from India namely Ceramics, Glassware, Wood,

Natural Fibres, Bamboo, Acacia, Eucalyptus, Metal etc.

There is strong government push to fulfill the condition to comply

with local sourcing requirements, which mandate that within five years, 30 per cent of all

goods sold in IKEA‘s Indian stores be made in the country.


Stregths

Threat of Substitute Products [LOW]

IKEA is instead substituting furniture of latest trends in India. Through simplicity of design

and innovative technology, IKEA can follow any new style fairly well. IKEA also has

entered the Indian market after well-research and has many space saving innovative

furniture capabilities for Indian consumers, in much affordable prices.

Government Supports

100% ownership of

IKEA in India

Competition delivers

ready-to-use furnitures at

the customer doorstep at

their convenience

No competitor as big as

IKEA existing in India

IKEA already has good

network of suppliers

which is intended to go

up

Customised furniture

available

Trust factor of the

consumer is high on local

vendors

Underlying Factors

IKEA makes benefit

through economies of

scale being the global

giant

Fixed Cost

IKEA is having huge setup only

servicing Furniture and Lifestyle

products where as other

competitors have small set-up

Competition

Indian consumers prefer local

retailers or trusted carpenters.

IKEA is a global player with deep

pockets however, the competitors

already have earned the trust of

the customers

Differentiation

The major differentiation is DIY.

The furniture industry in India is

offering customised ready-to-use

furniture to its customers.

Industry Growth Rate

Indian Furniture Industry in 2020

is 2nd highest in the globe after

US, USD 205bn forecast in

section (3)


5. Global Business Analysis – Why India?

Despite ‘globalisation’ being the most commonly used word in the business environment,

it is also one of the most loosely used word, perhaps they overlook the challenges and

pressures for the business being local and regional at the same time.

There are substantial differences in customer needs and in economic, regulative/

administrative, political and cultural institutions that make Indian market more or less

attractive. While PESTEL framework for environmental analysis and Porter’s FIVE

FORCE industry analysis help identify the factors affecting the business, there are

specific determinants of market attractiveness that need to be considered in

internationalization strategy.

It is important to evaluate how initial estimates of country attractiveness can be modified

by considering institutional voids and various measures of distance.

Ghemawat’s CAGE framework measures the match between INDIA and IKEA according

to four dimensions of distance. CAGE framework emphasizes the importance of Culture,

Administrative, Geographical and Economic distance.

5.1. CAGE Framework Analysis

Cultural

Distance

Administrative

Distance

Geographical

Distance

Economical

Distance

DIY (Do It Yourself)

concept in India NOT

existing

Difference in Attitude

and Taste of furniture

Adaptation to

Lifestyles of Indian

customer i.e. culture,

Values and Beliefs

Usability Differences

due to demography,

climate and ethnicity

Absence of share

monetary or political

association

No existence of

political hostility

between India and

Sweden

Corruption Issue

Physical distance

from Sweden to India

Weak Transport links

between countries

Cost and time savings

of IKEA makes use of

local resources

Large Country, with

challenges in

customer accessibility

to the physical stores

Income Inequality of

the consumers

Large economic size

and low per capita

income

Cost Vs. Quality

compromise

Need for local

customization and

standardized products


5.1.1. Competitive Characteristics

a. Market Attractiveness

India is a culturally diverse country, home to over 1.2 billion people. Its dynamic economy

is projected to have real annual growth of almost 5.7% (at current rates, the country is

expected to Top 5 economies in the world). Strong economic development over the past

decade has increased living standards and created a vibrant middle class that is hungry

for consumer goods (there are almost 30 million Indians with a disposable income of

over US$30,000).

The retail industry is an extremely important part of the Indian economy, responsible for

approximately 10% of GDP and employing almost 8% of the population.

- The Indian retail market is valued at $600bn (£460bn)

- Home furnishing segment of the market valued at $20bn and growing fast

- IKEA has pledged to invest over $1.5bn (£1.2bn) in India over the next 10 years

b. Institutional Voids

i. Solution for Indian Customers IKEA operates on a do-it-yourself model,

where users assemble their own furniture. In India, however, IKEA is

customising for the market and is building assistance for furniture assembly,

by tying up with Indian Startup- UrbanClapp. As part of this collaboration,

consumers purchasing a select range of IKEA furniture from the store will be

able to book furniture assembly services via the UrbanClap app or website.

ii.

Low Price IKEA is selling a product in India for less than it charges

elsewhere. Given India’s lower income levels, the store features hundreds of

products – from dolls to spice jars – priced at less than 100 rupees i.e 1.2

Euro

iii.

Tailoring to local tastes For example, most Indians do not use knives to eat

and primarily want spoons, so the company ditched its children’s plastic

cutlery packs and instead sells four spoons for 15 rupees, i.e. 18 cents


iv.

Plugging the Cultural Differences through product adaptation IKEA

conducted visits to about 1,000 homes in various cities to understand how

people lived and what they needed. Indian families spend a lot of time

together, with relatives frequently popping in, so the company added more

folding chairs and stools that could serve as flexible seating.

And with children often sleeping in the same room as their parents until they

are in elementary school, its model bedroom squeezes in a child’s bed amid

all the other furniture.

Even the cafeteria caters to Indian tastes, with biryani, samosas and chicken

instead of beef Swedish meatballs (due to religious belief) on the menu and

1,000 available seats, more than any other Ikea in the world, to accommodate

the more leisurely dining style of Indian families.

Product range here is less of heavy wood and the collection itself is very

colourful.

Ikea has introduced collection of home accessories such as bedsheet,

bedcovers etc in Indian patterns. The company has brought in innovation into

the manufacture of handmade carpets with a new “punja" loom (Indian

weave).

v. Adapting to Indian ethnic group and climate Indian women are also

shorter than Europeans and Americans, so the company decided to

showcase some cabinets and countertops at lower heights.

c. Expectations of Competitor Retaliation

The Nearest competitor of IKEA, in India such as PepperFry is having a wide reach

and has an omni-channel framework to reach out to the last mile customer.

a. Shifting the Gear to Digitalisation To be readily accessible to many people,

IKEA adopted a true omni-channel approach. This means the big stores and

small formats in the big cities of Mumbai, Delhi and Bengaluru and then also

having an online approach.

b. Due to globalization and more and more people exchanging/ travelling across

the world, the brand awareness of IKEA is not unknown. Conversely, IKEA’s

reputation in India is perceived as average, but at the cusp of being strong


and within the margin of error of its global score. This will offer edge to IKEA

over it’s competitors.

5.1.2. Conclusion

IKEA is global brand, and needs to considers its opportunities and deal with its threats

to take advantage in this competitive market. In the Indian market it needs to face its

barriers but maintain pricing strategy 'technology' innovations as they can drive out from

these barriers (Robinson R, 2005). By considering both micro and macro factors IKEA is

able to generate the strong growth and keep hold on a strong identity in the market.

5.2. Blue Ocean Strategy

IKEA’s main domestic competition will be the thousands of tiny furniture shops and

roadside carpenters who build-to-order. There are only a few national furniture brands

and websites, in the country. The furniture market in India is largely (85%) dominated by

the unorganised sector, office furniture segment is one of the major revenue generators

of the overall furniture market in India, due to low cost, possibility of customisation and

long drawn trust among the customers.

PepperFry, is one of India’s leading online furniture retailing firms, which is one of the

fastest growing furniture companies in India. In this paper, hence, we shall now analyze

blue ocean strategy for IKEA India in comparision to the unorganised Furniture Market

in India and PepperFry, on the following parameters.

- Price

- DIY (Do-it-Yourself)

- Traditional Designs

- Contemporary and Modern Design

- Ease of Buying i.e. Online

- Availability of accessories

- Speed of availability

- Quality

- Brand Image

- Offering an experience – such as Food


Strategy Canvas of IKEA in India

Strategy Canvas of IKEA India

HIGH

LOW

UFM PepperFry IKEA

Four Action Framework for IKEA India

ELIMINATE

DIY

REDUCE

DIY (Do-it-yourself)

Price

CREATE

Traditional Design

Ready- to- Use Furniture

Acquiring small competitors

utilizing infrastructure and workforce

REDUCE

Experience

DIY Workshops

Awareness

Online Presence


5.3. Porter’s Diamond

To analyze the overall competitive advantage of IKEA in India, we now will analyze

through Porter’s Diamond Model.

Involvement of local suppliers even before

entering the country

Low Cost and High Quality

Producing in India (local)- cost

effective

Good Brand Image - Leading the

social cause for women and children in

the country

Introducing DIY concept in the Indian

Market

1.2 bn population with a median age of

28 years (young)

Technology support for environment

friendly initiatives

Optimizing the production process in India

trough technology*

Rising Middle class population

Demand for cheap and contemporary

furniture

Availability of Cheap and competent

labour

Government support – allowance of

100% fully owned entity

*To ensure manufacturing of carpets in India globally competitive, IKEA has

empowered the handloom workers technologically

6. IKEA Strategy in India

Basis the above evaluations through business tools, below is the suggested PoA (plan

of Action), for IKEA in India. Here are the 6 P’s for IKEA in India

i. Mode of Entry – Sole ownership – 100% FDI

• Broad Competitive Advantage


ii.

Place

• Locating themselves in Metro cities in India

• Instead of concentration on large stores. The small and many stores strategy

adapted

iii.

People

• Middle Class- high incomes working class people, bachelors, young couples

etc

• Offer products to Hostels, educational institutes, Offices etc

• Knowledgeable and friendly staff, advice and assistance department

iv.

Product

• Quality and Design

• Traditional Indian design combined with contemporary scandanavian design

• Availability of assembling Service

v. Price

• Low Prices- Cost concious people and low labour cost

vi.

Process

• Product exchange/ Return policy

• Home Delivery

• On-line Buying option

• Efficient staff and customer service

vii. Promotions

• Moderate awareness about the brand already existing in the country

• Advertisemnet through all retail channels – TV, Radio, Newspaper and

magazine

Going Forward- IKEA Strategy

I. Acquiring an existing competitor such as Godrej Interio, Home Town or

PepperFry to capitalize of their knowledge of the Indian consumer base.

II. Replacing Home Centre or other home Furnishing brand with IKEA Products.


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

7. 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 a market like India, as

Indian masses are easily attracted by popular foreign brands in consumer goods and

retail segment. In addition, focus on expanding their omni-channel distribution strategy

which caters to the convenience factor of the Indian market along with positive publicity

to retain customers’ loyalty. This will aid increasing IKEA‘s customer baselines and help

them grab the larger pie in the Indian market. Most of the above recommended strategies

are undergoing implementation by the entity which may bear the positive results in long

run. Further, with the above strategies discussed, the standing of IKEA in the business

market would be heightened to a whole new level.


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