After a company or has attained a certain level of success as a market leader, it starts thinking about the benefits of exploring and expanding into new markets. This is what IKEA is doing. Exploring India has lots of benefits for fuels dreams of growth for IKEA. The India market offer opportunities for attracting new customers. India market provides a huge market for IKEA to market its products. Although IKEA has a well-minded customer base, India provides IKEA the opportunity to add new customers. Diversifying the company market will help the company’s revenue sources to become more and more stable.
India will also help IKEA improve its reputation. By marketing its products in India, IKEA will enjoy the prestige of being called an international brand. This will enable the company to attract more partners. It will also make the company a more rounded company offering products that take into account the Asian culture. Besides, India will increase exposure IKEA to foreign investment opportunities. It will be able to learn about these opportunities and how to adopt them to benefit the company.
Lastly, if IKEA becomes successful in the Indian market, it will enjoy increased revenue from the increased customer base. By offering a diverse range of products, the company will have multiple revenue streams. Through this, IKEA will maintain a competitive edge over companies such as Target and Ashley.
IKEA targets to satisfy the needs of the middle class and young population in India. This is the reasons that the company has considered to diversify in products that meet the requirements of this population. The products that the company is focusing on are products that serve the interest of the India culture and the culture of Asia at large. India customers value some types of food; they value different preferences when it comes to leisure activities which are different from western cultures. With this in mind, IKEA is if emphasizing on items tailored for the India customers preferences. Some of the products seek to lunch box sets that will be used to carry multiple course meals and pans for cooking Indian flatbread. People in India prefer lying in bed to refresh their mind. For this IKEA will produce mattress made of coconut fibers. Needs relating to food preferences for Indian customers are also taken into consideration. In this regards, IKEA will set up restaurants offering India meals and dishes such a Samoa, biryani and meatballs made with chicken with vegetables instead of pork.
To penetrate and survive in the India market, IKEA must focus on robust marketing and advertising. The company is well well known for its use of social media advertising. Because India does not regard the purchase of furniture, the company is considering to deploy more social media adverts and ads to market it’s brand in the Indian market. Besides, employing lower end products in terms of price will also benefit the company to reach more customers. Franchising will also be a great entry mode for IKEA in the India market. By searching for a potential India partner who is interested in promoting the brand. The franchise model will allow the company to do low-cost entry. Also, it will help IKEA to have a faster penetration riding on the India franchise.
Chaudhuri S. & Abrams C. (2018) IKEA Strategy in India.
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