IKEA, the Swedish furniture giant, is known for its innovative and affordable home solutions globally. However, when it comes to entering the Indian market, IKEA has faced unique challenges. While many Indians value home décor, the idea of frequently changing or upgrading furnishings isn’t as common. Anna Ohlin, IKEA India’s country marketing manager, shares the hurdles and strategies the brand has adopted to encourage change in India’s home furnishing landscape.
The Indian Market: A Different Ballgame
Entering the Indian market in 2018, IKEA was well aware that India would present a different kind of challenge. Indian households often prefer traditional, sturdy furniture that lasts for decades. Unlike markets in Europe or North America, where people often redecorate, Indian consumers generally don’t change their furniture unless absolutely necessary.
IKEA had to rework its strategy to fit this mindset. Anna Ohlin explained that the company understood that change would take time. She stated that instead of pushing large, costly furniture pieces, IKEA decided to focus on smaller, more affordable items that could slowly transform living spaces without overwhelming the customer.
Understanding the Indian Consumer
One key difference IKEA discovered is that while Indians love spending on their homes, they do so less frequently than consumers in other parts of the world. Indians tend to focus more on family life and social connections, which influences how they perceive their living spaces. Rather than regularly updating their homes, they hold on to furniture for generations, passing down items as family heirlooms.
IKEA, known for offering a wide range of modern furniture, faced the challenge of altering this deep-seated habit. Ohlin mentioned that they worked hard to position IKEA as a helpful and friendly guide in improving homes—one step at a time.
Adapting the IKEA Formula
Despite these challenges, IKEA is finding ways to gain a foothold in the Indian market. Here are some strategies that have helped:
- Small, Affordable Products: IKEA initially focused on selling smaller items, like home accessories, kitchen tools, and storage solutions, allowing people to make minor, cost-effective upgrades.
- Cultural Sensitivity: IKEA recognized that Indian households place high value on family and community. Their marketing campaigns emphasize how modern home furnishings can make life easier and more comfortable for families, especially when entertaining guests.
- Localized Offerings: Understanding the traditional carpentry culture in India, where many prefer customized furniture made by local craftsmen, IKEA offers a blend of DIY furniture and readymade options that cater to both traditional and modern tastes.
Navigating Competition
One of IKEA’s biggest hurdles is competing with local businesses. India has a vast market of local carpenters and smaller brands that provide customized and often more affordable options. Many Indian consumers still rely on neighborhood furniture makers who can offer tailored designs at competitive prices. This has made IKEA’s approach of flat-packed, DIY furniture seem unfamiliar to some.
However, IKEA’s competitive edge lies in its reputation for quality, convenience, and affordability. As more people get used to the idea of assembling furniture at home, and as urban spaces grow smaller and more modern, IKEA’s DIY model is becoming more appealing to younger, tech-savvy consumers.
Growing Interest in Home Upgrades
India’s economic growth and rising middle class are driving increased interest in home furnishings. Younger generations, in particular, are eager to create modern, stylish living spaces. IKEA has tapped into this trend by positioning its products as practical, affordable solutions for transforming homes.
The shift to remote working during the pandemic also sparked a renewed focus on home interiors, as people began investing in home office setups, ergonomic furniture, and more stylish living spaces. IKEA capitalized on this growing interest, further embedding itself into the lives of urban Indian consumers.
A Slow but Steady Transformation
IKEA’s journey in India shows that transforming deeply ingrained habits takes time, but it’s not impossible. By positioning itself as a helpful partner, offering affordable solutions, and being culturally sensitive, IKEA is slowly but steadily changing the way Indians approach home décor. The brand is playing the long game, focusing on education and small steps rather than pushing for immediate, large-scale changes.
In the years to come, IKEA is likely to play a major role in the transformation of Indian households. With its focus on blending modern design with traditional values, the future of home furnishing in India looks exciting, and IKEA is leading the way.
