Why IKEA's Failed In INDIA

Рет қаралды 252,749

Күн бұрын

IKEA can be found all over the world, from Shanghai to USA. But there is one continent that was uninterested in the Furniture Retail giant. Indians largely rejected IKEA attempted takeover, which led to an embarrassing retreat for the brand.
Check out the video above to see why IKEA's is flopping in India.
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Why IKEA's Failed In INDIA:
00:00:00 Introduction
00:01:12 History
00:01:35 Market Size
00:02:00 Reason 1
00:02:54 Reason 2
00:03:45 Reason 3
00:04:36 Reason 4
00:05:10 Conclusion
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78. why Ikea failed in India

Пікірлер: 428

@amoghars 4 ай бұрын

The IKEA concept doesn’t fit with Indian concept of furniture. IKEA makes furniture that should be replaced in 5 to 8 years and Indians buy furniture that lasts for the next 7 generations. 😂😂😂😂😂😂

@raji8484 4 ай бұрын

OMG ..such an under comment. That's the truth!

@ganeshsuribhotla1684 4 ай бұрын

More importantly the furniture Ikea sells is particle board crap which not real wood. Its mashed up, glued and baked wood chips the are a by product of cutting, sanding and shaving off that happens when real wood is mended to make stuff, hence the flimsy quality. In india furniture traditionally was made with real quality wood. SIMPLE

@amoghars 4 ай бұрын

@@ganeshsuribhotla1684 well, it is not that bad. My IKEA kitchen is working very well even after 15 years. It’s time to replace not because it is damaged, but I need a new style kitchen. Furniture style changes every few years, and we just go for a replacement.

@cerveauy8782 4 ай бұрын

@@amogharsMy IKEA furniture in Europe was crap. It started falling apart/ tearing apart in 3-4 years.

@amoghars 4 ай бұрын

@cerveauy8782 IKEA kitchen is not for a family with kids. I am single and I take care of everything in my flat.

@parinikasharma317 4 ай бұрын

Why Ikea's failed in India. Because my grandma's dining table works just fine

@lakshmikrithika2521 2 ай бұрын

And thankfully some of us haven’t fallen into the ‘aesthetics’ crap😂

@kishana9039 2 ай бұрын

Lovely 😍

@sauraabhsaxena5102 Ай бұрын

And i live in the same house as my father and grandfather

@KANTHAUSTIN 16 күн бұрын

What you said is true. Our Indian style furniture are more durable than the IKEA stuff.

@TheSujanroy 5 ай бұрын

India does not change for global brands. Global brands need to change for India to survive. The more they change, the more they'll thrive. Ask Unilever, McDonald's and P&G.

@gudcode 4 ай бұрын

By change, these other brands sometimes relaxed their quality and also adapted to india consumer's demands. IKEA was a very good brand, but they were just too expensive and did not give value for money, and consumers could find better options. If IKEA keeps same DESIGN concepts but uses indian local carpenters, then they can be very successful , as indian furniture is mostly lacking in design as well as quality. IKEA just did not succeed in using that as they did not get the right indian people to help them KEEP OWN DESIGNES but get local materials and workers. They relied too much on less thoughtful Indian management people who DO NOT UNDERSTAND DESIGN at all. They only have knowledge to do hera pheri and jugar like in most indian companies management. ...

@Jaihind-sena 4 ай бұрын

IKEA is for middle class and we have a very small population of middle class

@siddhantpatil292 4 ай бұрын

McDonald's still failed...ask dominions the only profit makers.

@narutoshipuden2440 4 ай бұрын

Hello Mr. Sujan Roy - Head International Business, PVBU

@user-jd1ck2sj7h 4 ай бұрын

Take 100 and give scrap material and name it after an english word.

@Aarsha-cv9lh 4 ай бұрын

Kelloggs came to India in the mid 90s to switch the typical Indian breakfast to cornflakes. Years later we have kellogs selling upma😂😂 there you go.

@naveenr5946 4 ай бұрын

man that's savage🤣🤣🤣

@abinodattil6422 4 ай бұрын

Fuck that’s a good point, Cereal is shit in between, extremely unhealthy

@cedhot 3 ай бұрын

its like no matter how many toilets modhi build they always go to the streets to shit

@Wmuthoni 3 ай бұрын

And here I thought that the reason why IKEA didn’t do great was because India prefers their own unique artisan products produced by locals.

@nou7401 2 ай бұрын

IKEA hasn’t failed, it’s getting started. They just announced expansions.

@krishnaswami346 4 ай бұрын

We go to IKEA check out the designs and make it with our carpenter using strong indian wood. Most Indians we operate like that.

@san-chil 4 ай бұрын

😂🤭☺ ... well ....🤫

@currentvandi8152 4 ай бұрын

1000% true

@mariasama3870 4 ай бұрын

Indeed, we do it also in indonesia

@aparajita1in 3 ай бұрын

Yes, steal ideas. We are very good at it.

@krishnaswami346 3 ай бұрын

@@aparajita1in it is mutual. They stole hundreds of things from here and let us impoverished.

@tindrums 5 ай бұрын

The wood...Indians know the value of wood. Ikea has great designs but Indians value functionality and durability more. We also like it installed.

@activelistener4484 5 ай бұрын

@@arturns902 Wont you like anything free. Anyway, where did you this free alternative to Ikea

@MadhuAmayil 4 ай бұрын

You nailed it

@diggidiggiable 4 ай бұрын

@@arturns902what a messed up comment . Makes no sense

@PraveenCJRegina 4 ай бұрын

Indian carpenter's products are of top quality compared to the crappy products of Ikea. I bought many products from Ikea in Canada, but they lasted only a short time, and their products are not high-quality craftsmanship. At my home in Kerala, we made our pieces of furniture using rosewood and teak, which are solid and will last for at least 50 years. We have already passed 20 years with no issues. We only have to polish them every 5 to 7 years. One main effect of Ikea products is the joints are joined using metal screws or nails, which will not last long, while in India, carpenters use wooden nails at joints which last longer. Also, Ikea doesn't use Rosewood, which is best for making furniture.

@blue_asahi 4 ай бұрын

Well it depends on the people. There are many who don't want a furniture which lasts for 50 years as they want latest models. It is like cars. People change it every couple of years for latest models.

@meta5291 4 ай бұрын

IKEA has crappy products, but they are better than the average local marwadi sourced products & carpenters are worse than DIY. Obviously, we are not comparing the same levels. Real wood/real carpenter is not comparable to IKEA - even pricewise.

@abhinay4200 3 ай бұрын

@@meta5291 Ikea can never justify price it charges , for the same price you could get a solid and better quality products in India . Ironically in europe , it is known as cheaper alternative to local furniture shops .

@meta5291 3 ай бұрын

@@abhinay4200 May be. But it is not been my experience. Like I said IKEA products are crappy, but I'll take them any day over similar crappy products sold by locals and made by local carpenters - not to be compared with high quality, real wood made by real carpenters, both of which i can't afford. In India, you get world class products made or imported for the elite, it has always been available. For the middle class, you have to rely on a brand, IKEA is good enough.

@sheshan88 3 ай бұрын

Fact : Rosewood takes 80~100 years to grow to become timber.

@libshastra 5 ай бұрын

IKEA hasn’t failed, it’s getting started. They just announced expansions.

@navalfa7291 4 ай бұрын

I agree.. We welcome Ikea. But Ikea needs to improve its quality of wood.

@ipikluninja91 4 ай бұрын

Exactly!! It is gaining momentum and expanding to more cities

@-bigChungusVerified 4 ай бұрын

These KZfaq channels are really clueless.. almost all companies are entering India with each passing day and they are saying ikea failed 😂😂

@meta5291 4 ай бұрын

@@navalfa7291I doubt there's any wood. It's mdf type stuff. It's supposed to be dirt cheap. It's not a fancy brand, throwaway stuff for throwaway prices. That said, it's much better than desi carpenter making awful stuff - because wysiwyg with IKEA.

@Eaglebird8853 3 ай бұрын

Very true. Indians are just getting a taste of better things.

@sourabhkumar1338 4 ай бұрын

In our house furniture is 65 years old and still working fine.

@keerthiv5702 4 ай бұрын

I can relate to this. In our house we have a chair which has come 4 generations now and still in good condition.

@lakshmikrithika2521 2 ай бұрын

@@keerthiv5702we have a grandpa chair one one baby bassinet that’s almost 250 years old now. Since babies are born everywhere, we just keep sending it to couples who had a baby. When the baby grows they return it back to us. It needs a once 15-20 years maybe new polish/varnish or needs screw tightening. Apart from that it’s super sturdy and heavy. So even if your baby learns to stand it won’t start swinging which would cause the baby to fall😊 And the grandpa chair, whose legs are curved so you’re swinging in the chair while you sit. I don’t know how many monkey gymnastics we all did on it. And it’s still ready for the next generation to do monkey gymnastics on it. Our ancestors might be cringing on the way we use it now but they would be glad we kept it around still😂

@the_thinking_lady Ай бұрын

In our house, furniture is 350 years old. It has been a witness of India's history for a long time.

@realistic2023 4 ай бұрын

Ikea has disposable furniture that is expensive and irritating to assemble. Indians want furniture that never get damaged.

@dmn1n 5 ай бұрын

Ikea furniture is not suitable for humid environment. Product made of engineering wood dont last that long.

@dominicsebin1619 4 ай бұрын

IKEA products are like fast fassion. One of their value proposition is to use latest indoor design trends at affordable price.

@harishpardeshi7261 4 ай бұрын

1. Quality of Ikea products in comparison with local furniture shops is also an important factor. Local shops sell high quality hard wood, plywood furniture which Ikea cannot supply in the same price range. 2. Ikea charges for the delivery and assembly, However local shops deliver furniture without any extra charges. 3. You need a full size SUV to carry Ikea furniture boxes, however the majority of Indian customers drive Sedan or Hatchback cars which have less trunk space. In western countries people can easily carry Ikea furniture in their SUV which is not possible for Indian customers.

@johnconnor3246 4 ай бұрын

Most people in the West use trailers for transport, which are rented out from IKEA and uncommon in INDIA.

@abhishekpas 4 ай бұрын

@@johnconnor3246IKEA products are costly with bad quality. It's the main reason they are not getting a market in India.

@suryaprakashpareek4692 2 ай бұрын

Indian keep 5 apps for each service's to compare

@NostalgiaforInfinity 4 ай бұрын

For one IKEA's products are flimsy and not durable because they're mostly made of particle boards and at the most MDF. Indians buy solid, real wood furniture and keep them for generations, not just 5-6 years. We aren't furniture consumers. Furniture to us is more like an asset and heirloom. I have a few stools, chairs, and a bed that has been passed down to us from the time of my grandfather's youth.

@arunec2000 2 ай бұрын

Indian furniture industry also mdf ,plywood only...real wood cost a hell ...

@the_thinking_lady Ай бұрын

You are talking about the older generation. New generation couples love to refurnish every few years.

@shwetaiyer1514 5 ай бұрын

Most of the local furniture stores now charge GST since evading it has become very difficult to hide from the government. Even the local branded stores sell furniture and upholstery cheap as they are all locally sourced. And they all charge GST. Unbranded stores I purchase from also charge GST. So, that is not a major reason. The types of wood used by Ikea, colour palettes, other materials etc do not suit the Indian climates. I mentioned climates in plural as the regional climates are quite varied here. Upholstery sold by Ikea is charged at eye-watering high prices. Supermarket chains like D-Mart etc sell curtains of extremely high quality fabric and stiching at prices 10 times cheaper than Ikea. When I visited the Ikea Navi Mumbai store, I was shocked to see a single curtain costing ₹5000. Nobody purchases a single curtain. So if you have 3-4 windows to cover, it would take 6-8 curtains. That's a really expensive purchase for just curtains 😂 We got our curtains at D-Mart at a range between ₹200-400 per piece. So, in around ₹5500, I got 3 different sets of 6 curtains each. Sturdy, strong stitching and quality rings, made in India. Plus beautiful designs. And yes, the stores are too far away. It isn't worth the cost of travelling all the way to an Ikea store to find exhorbitantly priced goods which will not last more than 2 years in this climate. Indians don't like having an "all-white" decor. We find it depressing and we cannot maintain the white colour with the amount of dust in this country! Even if we have a hired help for cleaning, it's impossible to maintain the colours sold in Ikea. If they want to succeed here, they should first overhaul their entire inventory as well as pricing. And that is never gonna happen 😆

@appsaccount9040 5 ай бұрын

Wow, so beautifully explained ! Crux of the matter is, western solution will not work for Indian markets. They have to evolve and start understanding Indian taste, culture, socioeconomic structure first.

@asc4135 5 ай бұрын

And their product quality isn't great...I have 2 cupboards from IKEA so I know this.

@gautamkoundinya 4 ай бұрын

Thats a more practical and more useful analysis !

@yahyamulla 4 ай бұрын

When I first started adulting, I got one room with one window. Checked the height and went to DMart to buy a curtain of that height. When I came home to install it, I realised I completely forgot that one curtain did not cover the entire length of the window and the same pattern got exhausted when I went to buy one more piece so I ended up with two different patterned curtains on the same window. You're right, nobody buys a single curtain if they're not dumb like me 😅.

@ultimatestoryteller 4 ай бұрын

See, I knew it. Thanks for supporting my view, sister. I knew those curtains in D-Mart were finest in quality when I went to buy them, I told the same to my parents also and they said no no D-Mart doesn't sell premium content. Thanks for putting in similar views at least I can convince them today and we can go there today itself to buy them (we've just bought a new house).

@Sooraj09073 4 ай бұрын

IKEA uses compressed and glued wood for furniture. In Indian households, real wood is preferred as it lasts for decades. IKEA furniture, made of wood or MDF, is considered cheap and won't endure well in high humidity, leading to mold formation within one to two years of use. For the same price, it's better to invest in real wood furniture that lasts longer than fancy glossy synthetic wood.

@sandeephalyal7325 4 ай бұрын

Nope! What I found is: 1. Its nothing but a physical Amazon store, selling imports from China. 2. They sell Swedish food in canteen, so most people can only stay there until the next meal time. 3. Dead cheap products are unnecessary, necessary stuff are absurdly expensive. 4. Most people don't understand their design language, and buying few products off the shelf didn't get along with our existing home setup. Yaa.. its mess!

@xxxx-tb4de 5 ай бұрын

IKEA products need to be assembled. This is not in line with Indian culture where you expect someone does that for you.

@parvadhami980 4 ай бұрын

Is it because of looking down upon physical labour?

@jayakishore565 4 ай бұрын

@@parvadhami980not looking down . Providing jobs to others . In IKEA you have to do it separately

@shubhankardasgupta4777 4 ай бұрын

@@parvadhami980 I will buy a furniture not "parts" so that someone or myself has to assemble it and make sure the quality matches to the price... for the thing I'm not an expert, I will hand over to someone who is capable of and I'll PAY for his/her service.

@the_thinking_lady Ай бұрын

@@shubhankardasgupta4777 That is because labor is cheap, and you can afford it. The same you would readily do everything yourself once you land in USA or Europe 😂😂.

@scbqpl 4 ай бұрын

In the west Ikea is big on design weak and cheap materials therefore low on cost. In India they kept the design and low quality but priced at a premium. India can do with the design expertise but for more localised tastes. Also we only buy sturdy stuff.. We do not change furniture every year.

@dibyendugoswami6294 5 ай бұрын

Indian market is very difficult to understand. The foreign companies have learnt the way in which western countries' markets work, but that isn't the same here. First of all, the customer base is not 1.4 billion, rather some 200-500 million people who earn quite moderate/rich and can spend money by trying things. Secondly, people in India, don't really use credit cards and heavily use debit cards/upi. So they buy when they have money to spend. Third, the local shops are very much familier with the customer which gives the customer a chance to bargain with them. There are very many reasons for their failing success!

@JasthiCS 5 ай бұрын

It has boring furniture and only a few good options. It does not meet the taste of regular Indians.

@stankssmile5865 Ай бұрын

True no intricate carvings like Indian artistry

@mayurdas9526 4 ай бұрын

We don't typically use cardboard furniture for our homes; instead, it's commonly utilized for school projects.

@nageshwaranrahul Ай бұрын

Ikea failed in India ? Idk what you talking of literally Every household and Cafes in Hyderabad is stacked wirh Ikea goods.

@gaurav5800 4 ай бұрын

India is service oriented and does not like DIY things. Also service is is generally free or is included in price. Unlike IKEA which charges extra. Thus reducing customer experience

@buwburbhbjeqbb6790 4 ай бұрын

I noticed in Ikea that most of their items were imported from outside mostly from China. They don't have supply lines in India. On other hand, local market gives more variety appropriate to Indian tastes.

@davetorcan6047 5 ай бұрын

India does not need IKEA!

@deepak17907 5 ай бұрын

very simple,all my house furniture was built to suit our house from local furniture shop.They are good wood not this engineered wood crap.

@saurabhraj2690 28 күн бұрын

Local Indian Carpenters make furnitures that last a lifetime.. buying readymade furniture is not a concept here for most part.

@jyotichalke881 5 ай бұрын

Their furniture's are very expensive, confusing and made from china a perfect recipe for disaster. If Ikea wants success they should have indian oriented furnitures suitable for our needs and not just western oriented dumped products, and also make in india will further reduce costs.

@SanjayGupta-nt9vn 4 ай бұрын

IKEA was disrespectful and arrogant to make the cultural adjustments needed to enter the Indian market.

@gnanasuryatejakurapati8080 4 ай бұрын

The "pricey" furniture IKEA sells is no where to the quality of the furniture even an unbranded Indian local market has... Indians always look for longevity before buying... So, think differently... A better approach would be to have the designs online and manufacture it based on customer preference of materials and deliver it....

@noclicheplease 5 ай бұрын

Ikea's entry level products are of inferior quality(type of material used) but also expensive compared to same furnitures that come from China. You will find better quality furniture at your NEAREST furniture store for a better price. Also Ikea's furnitures aren't yet affordable for the college students in India, like it is in the developed countries. "yet" being the operative word, students will be able to afford these furnitures in the future because of the India's growing GDP per capita. So currently Ikea will struggle a bit, but if it persists, it will reap the benefits when India and Indians grow stronger economically.

@germandaddy907 3 ай бұрын

they do racism towards india and indians in the west , so no way that kind of attitude will work in india ?

@u087183 4 ай бұрын

IKEA restaurants are the only part of their business doing well I think. Have seen huge lines for their biryanis and meat balls in Hyderabad ikea

@reblyfigueiredo8620 4 ай бұрын

honestly speaking I go ikea worli Mumbai just to eat chicken meat balls. never thought of buying furniture. I think Ikea should convert furniture stores into a huge food mall.

@sohamparmar4976 16 күн бұрын

I have never seen anyone buying branded furniture in my entire family! Nor did I heard from any friend about it.

@suryaprakashpareek4692 2 ай бұрын

In Bangalore there is already big market of indian preferred furniture showroom 1.royaoak Jodhpur furniture Urban ladder Theor are 50such companirs already amd then come local furniture shops which is present in every mainroad

@accesskarthik1 2 ай бұрын

Apart from the greatness of Indian market and proud to keep furniture for generations. Another major point that no has mentioned Ikea's designs doesn't suit our ugly houses. We are not worried about the aesthetics as long as they are cheap and functional.

@commentplease2 Ай бұрын

IKEA cannot sell with two stores. It can only show, which it did well.

@Keylevitation 4 ай бұрын

Should have added that ikea paid big money to build a direct connection from the metro station to ikea in bangalore

@ameykulkarni6460 5 күн бұрын

Major concern is India doesnt have DIY system. An expert will come to your house and will assemble it for free. Plus there are thousands of local vendors who will provide better services than big players like Ikea. The next big issue is design. Ikea had bland and very american looking furniture which doesnt appeal Indian customers where we have thousands of different designs and structures

@allcaps3584 Ай бұрын

In my local IKEA store, majority of products are Made in China, but sold at pretty steep price points. Good luck surviving in India market.

@mohammedazharuddin5513 Ай бұрын

The video spoke about everything except for the one main key differentiator which is the quality of products. IKEA products are mainly made out of engineered wood, a quality which we don't necessarily like since it doesn't last beyond 5-6 years. Indian consumers generally prefer long lasting furniture products made out of sheesham wood (or similar/better quality of wood).

@jayfloramusic 4 ай бұрын

Most importantly just like food firms have to change their menu, Ikea will need to change their designs based on local tastes too. Indians like really good looking furniture with intricate details, and Ikea is very vanilla/bland.

@m11nt Ай бұрын

I can describe most indian furniture design as gaudy.

@ganeshnh 5 ай бұрын

Couple of items online from IKEA were of bad quality, no way to return them, I have to go to their store. Thought all their items are top notch, but not so.

@sumandutta4834 4 ай бұрын

Furniture is something where physical touch is important for many buyers. Even with small shop format, online catalog will not help without physical sample. Also, for bigger purchase, people want same day delivery.

@nabeelmohammedca 4 ай бұрын

Most Indian customers prefer durable furniture made with hardwood like teak which would last more than 40 years. Most of IKEA's furniture is made using particle board which won't last long.

@tamizhumuyirum 4 ай бұрын

background music volume is big and cant hear the narration properly - editors pls keep the background in way that we can hear the narration clearly

@princesinghx 2 ай бұрын

Well they haven't even started there full operation across india yet. So what made you guys think of it?

@lhxperimental 3 ай бұрын

What are you talking about. The IKEA in Mumbai is always crowded

@janejustin1788 3 ай бұрын

a success in only one store or city doesn't mean it has succeeded...i'm sure IKEA thought it would expand in the whole country quickly considering India's growing economy and a large young population

@nou7401 2 ай бұрын

@@janejustin1788 IKEA hasn’t failed, it’s getting started. They just announced expansions.

@AbhisekNegi Ай бұрын

I planned to purchase a bed in bangalore. When I visited Ikea, the bed which cost was nearly 15K, I could lift with one hand. It felt like it's gonna break in 2 months. The only thing that I liked was the finishing. I decided to purchase from a local shop. The quality is far far far..... superior. However in my hometown I could have found bed even better quality wood. Now was thinking how ikea is able to do business in india. Now I know I am not alone.

@Eaglebird8853 3 ай бұрын

Indians are just getting a taste of better things in terms of quality, esthetics, innovation, space saving ideas, utility etc I purchased a study table recently with 2 drawers, price Rs. 12000, way high. But quality and esthetics too. Glossy finish. Cant take eye away from it! Istallation, they have tied up with Urban company to reduce cost which did a great job @ 800/- IKEA directly may charge multiple times more because of establishment cost? There are thousands of IKEA products that customers can buy at dirt cheap price and enjoy European standards

@SDM496 5 ай бұрын

Press wood , Chinese made and still expensive as compared with local Indian made furniture. Fire the IKEA CFO and CEO who decided to enter Indian market 😂😂😂.

@travelrichardparker1088 2 ай бұрын

I don't feel IKEA failed in india, i am visited Hyderabad store, and I can see decent purchases happening from the customes may be it not too much, but they can be sustainable in the market.

@freespiritjawa2507 2 ай бұрын

IKEA is selling chicken Tikka masala and paratha in Bangalore 😅😅😅

@reubenjoseph7228 20 күн бұрын

The problem here is that we are comparing metrics between India and Europe which should not be done for a variety of factors. India should be considered as a separate market and not compare with anywhere else. But that being said - I've been to Ikea in Hyderabad, Bangalore and Mumbai multiple times and its always crowded. So it is still doing good.

@udhavgarkhede6028 Ай бұрын

In india it's impossible for ikea to sell Coz everything is available in local at 1/2 price to IKEA even in good quality But IKEA can buy it from india and sell to world for profit win win situation for both...😍

@AbbasHaidari-fz3to 10 күн бұрын

it's pretty simple, why buy a inferior lower quality product, when a better alternative is even more easily available.

@railfan_neon 4 ай бұрын

Vocal for Local ❤❤

@user-qt6gb8we6d 2 ай бұрын

Chicken franchise KFC wanted to open outlets in Gujarat, and their 70% menu is vegetarian. MCD’s big part of menu is vegetarian. Basically, if Ikea wants to sell in India, sell items which are made of real wood and durable. Most Ikea SKUs are made of compressed cardboards. Cheap materials & still they take same rate as real wood furniture.

@saksum15 4 ай бұрын

They should have opened stores in Chennai, Pune, Gurgaon, Noida, Coimbatore, Ahmedabad and Delhi.

@maha_sage 2 ай бұрын

We are already have Pepperfry and Urban ladder for flimsy particle board furniture to last a few years

@PrakashManokumpuzha 2 ай бұрын

Ikea should start in kerala where people having more purchasing power and high living standard

@tarachandb2899 Ай бұрын

Idiot...who will deal with labour issues😂😂

@sagara6751 3 күн бұрын

Price of furniture needs to be competitive. Ikea furnitures are costly for Indians.

@maruthuk 2 ай бұрын

Thanks for explaining the reasons behind IKEA's current losses in India. There's a key point missing in the video's example about cost and pricing between IKEA and local sellers. Unlike local sellers, IKEA incurs Integrated Goods and Services Tax (IGST) on furniture imported into India, similar to a tax on goods moving between states. Then, IKEA pays GST again when selling the furniture to consumers. So, even if IKEA and local sellers buy furniture at the same cost price, IKEA ends up paying significantly more in taxes. This is a major disadvantage for IKEA compared to local competitors, who can often provide assembled furniture or free assembly services, adding another layer of cost to IKEA's DIY model that customers may not prefer.

@lakshmikrithika2521 2 ай бұрын

Apart from the obvious reason everyone stated which is ‘ikea furniture is processed wood chipping a glued together and priced at high cost. And Indians prefer sturdy furniture to last for decades. We also haul our furniture to wherever we move. Unlike in the USA where transportation costs are more than the cost of all the items combined together. So we actually pack our sofas, dining tables, chair, beds via packers and movers and take it wherever we go.

@Vishwakuchangi 4 ай бұрын

They did not study Indian market. I have visited IKEA, but their prices are high compared to Amazon, Flipkart when products are same. Why such big difference in price ? It's not just local shops without bill, please check again. Even online stores provide GST bill with warranty yet the IKEA prices are way to high. Now coming to DIY, present generation Indians do know how to assemble things themselves. KZfaq channels are available for that. Work on your price first

@siddharthkanjilal1778 2 ай бұрын

Amazon is cheaper even in Europe and US. So it can't be just about the price.

@Vishwakuchangi 2 ай бұрын

My analysis was only on Indian market. I don't know how big IKEA is in Europe or US so definitely when it comes to India, pricing is one of the key differentiator@@siddharthkanjilal1778

@Vishwakuchangi 2 ай бұрын

@@siddharthkanjilal1778My analysis was only on Indian market and not US or Europe. Price is the biggest factor in Indian market especially when there are other avenues to compare so easily and then Quality too. Majority of their wood is engineered(particle wood) then why pay such high price for engineered wood

@GowthamV07 Ай бұрын

Indians have furniture store in every street. This is not USA or europe where competition is less. Also these local furniture store cater to the audience as per their requirements.

@puffeduppanda Ай бұрын

In india most people prefer real wood over mdf. Also wooden furniture is affordable and durable. Ikea cant match up to ethic styles like jodhpuri teak wood furniture 😊

@girishb7267 24 күн бұрын

IKEA should have watched Greenply ads before they entered India!

@shoryalondhe217 4 ай бұрын

Obviously ikea is not going to rule the furniture market of india. But i can see its presence setting up in tier 1 urban cities. I mean upper middle class in mumbai now has started preferring ikea more

@nikhilthaur531 4 ай бұрын

Indian market is mostly value for money with good quality.. You captured all points very well.. we dont like to drive long to but furniture when my dad’s friend has furniture shop and they will send the furniture to Home without any cost.. set up the whole thing and you can pay him in instalments.. in india relationship sells as simple as that….

@poojan423 2 ай бұрын

Why would i buy an expensive furniture made of powdered wood? I would rather buy solid wood furniture at the same price at the local market or known Indian stores.

@technoyoung 21 күн бұрын

We go ikea only to eat yogurt ice creams .. 😂😂😂😂

@rameshemv 3 ай бұрын

This looks like a pretty old video/analysis on IKEA. It started doing a prettydecent job in Hyderabad since it was set up a few years ago.

@lakshmikrithika2521 2 ай бұрын

Half the people in Hyderabad go there to eat the biryani. Or if at all but their kitchen products😂 like glasses and spoons and white coloured plates. Maybe even firming tables and chairs. AT MAXXXX sofa. But cupboards and beds are absolutely low quality.

@ahmedvnit 4 ай бұрын

IKEA is super expensive in india compared to local competetion. Its not just about 18% GST issue - prices are almost double or triple compared to local markets.

@ultimatestoryteller 4 ай бұрын

I have visited IKEA stores, first in Dubai and then Hyderabad. As a Bhartiya, the moment I first completed my IKEA store visit, my first reaction was "nope, they won't work in India" because their furniture was just too western. I've seen the kind of beds I've slept or my parents have used all their lives, or the kind of chairs and sofa sets our family has used and IKEA was nowhere selling that kind of stuff. Only the commercial office based furniture looked somewhat on point. If they want to enter Bhartiya household, they have to make stuff that we use or we will prefer because for us, we are less concerned with the brand of furniture and more laser focused on our needs as a family since in any case we visit 20 shops before buying one sofa set.

@sandyjust 2 ай бұрын

The quality of IKEA can not compete with local furniture in India. In other countries there are not many options for local players however in India, it's the other way around.

@nvenkatareddy 5 ай бұрын

They will do well if hey enrol lakhs of traditional carpentars to become their assembly partners for a percentage just like uber rapido.

@hardtrailrider 3 ай бұрын

The rainy tropical weather of India especially southern parts and east may not be suitable for particle board furniture. But it may help singles living in hostels and small apartments f temporary.

@zafar1khan 28 күн бұрын

Ikea products are light and easy to relocate. But indian Mentality they look for product which can sustain for years. Example IKEA beds may survive max till 5 to 6 years. But local furniture's in india survive more that 10 years.

@mattaikay925 4 ай бұрын

Godrej Interio is a very good if you are opening an office/furnishing an appartment in India - quality is comparable - the trouble is stuff that is not in stock take > 3 weeks to deliver.

@harshiththonda9808 4 ай бұрын

We just go for window shopping there , we get free ac and an idea of how to setup a room😅

@suryaprakashpareek4692 2 ай бұрын

Now Indians are planning for marble furniture better then woods lasts for generation Already started in some part of India

@surejsj 4 ай бұрын

Why noicy music is added to video making it more difficult to listen and understand the real meaning of news.?

@sanm7781 Ай бұрын

Local woodworkers make furniture that is more lasting than that assembled garbage.

@dxbrane 2 ай бұрын

People are recognizing IKEA and have started warming up to concepof disposable furniture. It's working well in metros where you have lot of people staying on rent. Also Mumbai builders are offering projects which are furnished by Ikea.

@lakshmikrithika2521 2 ай бұрын

They are crap. Most good builders steer away from ilea because once the buying party realises all his interiors is from ikea, they ask the builder not to fix the interiors and rather reduce the cost from the flat. And in Mumbai people buy house to stay. Few to rent but mostly they do live in them.

@me_rony 2 ай бұрын

Wow..ikea failed in India????? Its a shocker to me... ikea just failed to open at the most consumer state in India.. they missed the bus for kerala or kochi. Ship it across kerala and you will end up atleast 3x of your current business.. don't forget a quality customer care.

@nandagopalm7232 2 ай бұрын

They just started. They still got 22 stores to be opened. Kochi trivandrum on the way

@nassrol Ай бұрын

IKEA IS TOO EXPANSIVE for average indian.

@hemavathikumar9123 4 ай бұрын

It's not a failure, they do not have butterflies around. There are Indians who have brought in 23kg of just IKEA items from Sweden via Air INDIA.

@sinlokemp 2 ай бұрын

Durability is what Indians love. Long lasting product. IKEA need to think on durability over design and it will sell.

@Whatreally123 4 ай бұрын

IKEA India's policies are horrible. I bought a metal aide table. One of the parts was wrongly prosuced and it took me several weeks to get through to the customer care and get it replaced or refunded. I gave up after some time. Around Rs 3000 down the drain. Decided to never buy from ikea again. Some of the prosucts like mugs, organisers are good but furniture doesnt gel with majority indians' taste. We prefer more of wood than metal and plastic. A table from ikea has metal legs and cardboard top and high prices (not cos of gst but cos of the brand). I can literally take the same design and pay a metal worker to make the frame and go to a carpenter and get a solid sheet of plywood with my choice of laminate amd yet be 20-30% cheaper than ikea's products. Cheaper and more durable. Why would anyone buy ikea. Some people do buy coanits a new brand and fornthem its more about buying from a brand rather than the product itself being any good.

@charmaine8512 Күн бұрын

That is good news. Encourage our grassroot folks to continue with their inborn skills which did not even require education. Carpenters, Shoemakers, Dressmakers, Farmers, Shop Keepers, Labourers, Maids did a better job without going to college. Recall buying my first bed ordered from a small shop in Kerala and when I asked the proprietor to do a few changes so that the mattress sat comfortably in the bed I was ordering, I was thrilled to see my own designed bed delivered beyond my expectation. Ikea is for Americans😂

@lekshmisobhana3248 Ай бұрын

you missed the most important factor, the quality of cheap furniture is far superior and durable for generations compared to a higher priced ikea. in india you have to not only sell cheap but with premium quality. a 10000 dollar chair in usa can be bought with around 50dollar from a local vendor in india. so why should anyone pay more for bad quality in india

@muskanustad3834 2 ай бұрын

We very much trust on Local carpenter, they are very skilled, use the good quality and it's cheaper and has great durability, they can be useful for 2 to 3 generations, and yeah I will prefer to support poor and middle class carpenters rather than a capitalist ❤

@lalityay 2 ай бұрын

India has a lot of good carpentry workforce, that can make hard wood furniture that can last a decade or two.

@PravahanSalunke 4 ай бұрын

I am surprised at the premature conclusion that IKEA has failed in India. AFAIK Ikea just got started in India & has a long way to go.

@br2883 2 ай бұрын

Everything in IKEA was substandard. Furniture were just filled with cardboard or sawdust and finished like teak. Much better products were available in product based retail stores.

@amalgeevarghese6867 3 ай бұрын

Indian market is not that hard to understand:- 1) Indians typically use wood which lasts for at least 3generations. Being a person who uses IKEA furniture, I don't think the compressed wood would last that long. 2) Teak or rosewood furniture is sturdy- which makes the IKEA product look flimsy for almost the same price 3) The cheap products at IKEA are almost unnecessary and the products people need are ridiculously expensive. And the next 2points is the main concern 4) The IKEA store in a city is located in some far corner. Travelling that far to buy furniture and then paying for delivery charges and then having it assemble all by yourself is a hassle for most Indians. Why go through all that when you get free delivery plus installation for wooden furniture which would last longer! 5) If you have to return a "store bought" product in case of any defects, they don't have home pickup. Having to travel across the city to return a defective product is frustrating. And to add to that, the customer support that I've got until now is one of the most unresponsive and time taking! So... there you have it!😂