Swedish Furniture retailing giant Ikea is going to enter in India by opening its first store in Hyderabad very soon. It was the first company to get approval from the government of India regarding 100% FDI in retail business by any single brand. According to the proposal, Ikea will invest Rs. 10,500 Crore and plan to open 25 stores in nine different cities by 2025. Globally, Ikea renowned for its ready to assemble furniture at an affordable price. Ikea has around 400 stores across the globe and most of them are in Europe. Now It is entering in completely a different market. 



Indians are not buying furniture as a product but buying it as an asset. Furniture must be sturdy and long lasting which is also made up of wood. But, the taste of the Indian consumers has been transforming towards western style furniture which will prove one of the biggest advantages for the Ikea.

The whole furniture industry is unorganized yet in India. An industry is dominated by the local tiny manufacturers who are crafting furniture according to the need of the consumer. Such tiny manufacturer has nothing to do with the accounting. They are not paying any sort of the taxes. So, due to high taxation system especially in the furniture industry, it may cause adversity for the large players like Ikea to cope up with such competitors.


The foremost demand in furniture by the Indians is the customization, especially in quality and size. The tiny manufacturers are making the product according to the requirement of the consumers. However, Ikea also providing customize furniture products but unlike other countries, here in India, customization is depending upon the quality of materials and awkward sizes.


Indians are very judgemental in nature. People pretend that they know everything about the furniture industry. At the same time, the Indian market is price sensitive while Ikea is providing contemporary furniture which is very simple and elegant look. So, it will be tough to convince the consumer initially for the product which Ikea offer and immediate right after the price of the same product.


The impact of the ‘Make In India’ initiative of the government seem over the furniture industry. A Large portion of the furniture is being imported from China while the relationship of India with the China is not friendly. So, many people avoid buying the Chinese furniture. 

Before entering into one of the largest consumer markets, Ikea has done extensive research to gain profound insights about the Indian furniture market. In 2013, Ikea sent its top design executive Marie Lundstrom whose sole purpose was to learn the mindset of Indian and market of India. They do not want minuscule compromise. It had surveyed around 500 homes and many products to match the offering with the Indian aesthetic.

One will find not only the internationally acclaimed Ikea product in Ikea India stores but roti makers, spices boxes, idli markers, dark colors sofas, Metal wardrobe also finds.

The key success note for Ikea is to expertise in achieving economies of scale in any country. They give emphasis to the volume rather than rates. But, for the particular Indian market, it will be very difficult because Ikea has not a competition with any organized furniture player. They have to combat with the local supplier whose production and administration cost is quite low. Differentiation is the only option with the Ikea. Due to lack manufacturing technology in India especially in the furniture industry, Ikea can avail the opportunity by making a proposition which will somewhat different from local players.


India is rapidly growing market where consumer demand has been growing like anything. Due to not having a shotgun approach, Ikea will surely make their own space in India’s clutter furniture market. They are preparing for tomorrow. They are very optimistic regarding the upcoming generation. In fact, their target audience is the one who will be the next earner for his family. 

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