Have you been to a furniture store that takes up half your day?
One where once you enter, you’ll have to spend 4-5 hours and can have a picnic with your family.
Enter, IKEA, World’s largest furniture store, for the better half of the 20th century.
It is the world’s largest, most unique and profitable furniture retailer.
Let’s take a look at how IKEA has maintained this leadership position for so long. And how it will impact the furniture industry in India.
IKEA opens huge stores, their first store in Hyderabad, India is 15 acres.
That’s as large as the Rajiv Gandhi International Cricket Stadium in Hyderabad.
It has ready made home furnishings and even Entire Apartments on display on the first two floors.
Below the display is a warehouse stacked with all the products in neatly packed boxes. You can pick up these boxes and check out in convenient manner.
The best part about these boxes is that they fit in Indica or Maruti Alto.
IKEA uses Nudge marketing tactics to make consumers buy more.
It accomplishes this by mastering their store layouts.
Basically, once you enter an IKEA store , you can’t exit before walking through the entire store.
Ikea is the best in the world at showcasing their products!
IKEA can furnish your house end to end at half the price an interior designer would. They do so by reducing the number of products, and focusing their attention on a few. For example the total unique products in the Hyderabad store are 7000. This may seem a lot but your local furniture store which is 1/20th the size of Ikea has over 9000.
Now, here’s IKEA’s secret, every piece of furniture is DIY.
The customer has to work to assemble the furniture.
As a result, he likes the furniture more!
This is IKEAS secret called the IKEA effect.
IKEA is a SCANDANAVIAN design house.
They gave us design legends like H&M, Lego, Volvo and of course, IKEA. There are certain characteristics that set SCANDANAVIAN design apart.
One is eco-friendly production, which has a long tradition in Sweden.
Transparency is another characteristic – which is hardly seen in India. For example, scan the product barcode of any Ikea Product and you can trace its place of origin.
The Average Indian doesn’t buy furniture, he or she gets it custom built by carpenters.
The buyer needs to negotiate rates with the carpenter, hardware store and labor.
This is a time consuming activity. Time which we all never have.
Many Indian startups have tried to solve this problem. Companies like pepperfy and urbanladder have heavily invested in the Indian Furniture marketplace.
But, the experience is still subpar. Both these startups have invested in marketing, and supplychain. but the Furniture they sell is Made in China. Ikea invests all its resource in design and manufacturing.
Say you don’t have your own car, IKEA delivers all your orders in Electric Autos – only for Indian Customers.
Further, they’ve plans to open 25 stores in India, with a staggering budget of 11,000 Crores over the next decade.
Visit an IKEA store and let the magic unravel itself.