Ikea’s Futuristic Approach
Ikea the world’s largest furniture retailer, is the quintessential global cult brand. In the year 2016, more than 771 million shoppers flocked to the Scandinavian retailers’ 368 huge stores, in 51 countries. The same year Ikea generated revenues of more than $37 billion. That’s an average of about $100 million per store annually, more than Walmart’s average per-store sales.
Far more than just being a furniture merchant, IKEA has achieved global success by engaging consumers of all nationalities and cultures. From Beijing to Moscow to Middletown, Ohio, customers are drawn to the IKEA lifestyle, one built around trendy but simple and, practical furniture at affordable prices.
- Many aspects of IKEA’s strategy are standard worldwide.
- As a benchmark, all of IKEA products are designed to sell at half of the price of the similar competing products.
- The products that IKEA offers are of self-assembling in nature.
- Hence, when IKEA decided to start its store in India they were faced with many challenges.
- For IKEA to be successful they had to come up with many new sustainable ideas.
Therefore, after undertaking huge research i.e. after surveying over 1000 families in Hyderabad, IKEA understood what exactly were the needs of the consumers
- The first ever Indian store of IKEA opened up in Hyderabad which has focused on providing narrowed kitchen and living product categories.
Ikea is planning to set-up a large format store in Noida and, has signed a memorandum of understanding (MoU) with the Uttar Pradesh government for the opening of stores in the state. The company considers UP as an “important market” and for that Ikea is “in dialogue with the present Government to facilitate expansion plans in the State.”
IKEA further plans to open up stores in Mumbai, Bangalore, and Delhi-NCR.
An enthusiastic part-time freelancer who enjoys programming. His Aim is to build conceptional and analytical products for a better tomorrow with sheer commitment towards becoming better every day and an eagerness to learn from people across different industries.