Ikea betting on new markets; will open stores in India next year

  • Ikea is banking on newer growth markets like India to offset the impact of slowing growth in several global markets & seeks to trim costs to ride out competition from low-cost manufacturers. 
  • Instead of one big launch in the year, Ikea will have four new launches & is taking big steps in multi-channel retail.
  • Ikea will debut in India next year, with one store each in Hyderabad & Maharashtra & plans setting up 25 stores in the country by 2025.
  • Ikea which operates on a low-cost model will replicate its affordability & accessibility positioning in India as well.
  • This year the company has witnessed weaker launches, stiffer low- price competition & changing consumer behavior due to e-commerce & multi-channel retailing.
  • For this, Ikea is revising sales targets downward for the year & is focusing on the price-volume equation which is part of its DNA.
  • Traditionally, Ikea has talked to consumers about its stores and catalogue but is now fully embracing the digital platforms.
  • Ikea plan for the year includes launching new living rooms, speeding up innovation, and repositioning the brand by investing in quality.
Source: http://bit.ly/2qljbFZ

 

 

 

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Parnati Jain

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Yash Rathod

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