presentasi kelompok 24

Summary

Ikea's entry into India in 2013 presented a significant opportunity due to the country's large population and growing middle class. The company faced challenges like complex regulations, diverse consumer preferences, and price sensitivity. Ikea conducted a comprehensive feasibility study, researching local preferences, assessing logistics, and planning product adaptations. They opened their first store in Hyderabad in 2018 after five years of preparation, which was met with an overwhelmingly positive response. The success underscores the importance of a detailed market analysis and strategic adaptation.

Takeaways

• 🌏 Ikea, a Swedish multinational, decided to enter the Indian market in 2013, recognizing the potential in India's large population and growing middle class.
• 🔍 The company conducted a comprehensive feasibility study to understand local consumer preferences, purchasing power, competition, and the need for durable, low-cost furniture in India.
• 🏭 Ikea assessed the logistics and supply chain requirements, deciding to source a significant portion of its products locally to reduce costs and comply with India's foreign direct investment regulations.
• 💼 Ikea identified an aspirational urban middle class in India that was increasingly inclined towards modern home furnishings, indicating a market for their products.
• 💡 The company planned to adapt its product offerings to suit Indian consumers, including smaller-sized furniture and a locally inspired food menu in its in-store restaurants.
• 📈 Ikea projected costs and forecasted revenues and profitability, taking into account the price sensitivity of Indian consumers.
• 🛠️ The company invested in training its workforce to cater to Indian consumers, emphasizing customer service and cultural sensitivity.
• 🚧 Ikea identified potential risks such as regulatory hurdles, supply chain disruptions, and cultural differences, and worked to mitigate these through close collaboration with local partners.
• 🏬 After a thorough feasibility study, Ikea opened its first store in Hyderabad, India, in 2018, which received an overwhelming response.
• 📈 The success of Ikea in India illustrates the importance of a detailed feasibility study in understanding market dynamics, consumer behavior, and local regulations, allowing the company to adapt its strategy and establish a strong foothold in a new market.

Q & A

Why did Ikea decide to enter the Indian market in 2013?

Ikea saw a lucrative opportunity in India due to its large population and a growing middle class.

What were some of the challenges Ikea faced when entering the Indian market?

Challenges included complex regulations, diverse consumer preferences, and a price-sensitive market.

What was a key finding from Ikea's research on Indian consumer preferences?

Indian consumers preferred durable, low-cost furniture and were unfamiliar with self-assembly concepts.

How did Ikea address the logistical challenges posed by India's geography?

Ikea decided to source a significant portion of its products locally to reduce costs and comply with India's foreign direct investment regulations.

What regulations influenced Ikea's sourcing strategy in India?

India's foreign direct investment regulations required foreign retailers to source at least 30% of their goods from local small and medium enterprises.

What financial projections did Ikea make before entering India?

Ikea projected costs of entering the market, including setting up stores, establishing supply chains, and marketing, and forecasted revenues and profitability based on different scenarios considering price sensitivity.

How did Ikea plan to adapt its product offerings for the Indian market?

Ikea planned to include smaller-sized furniture, a broader range of kitchenware, and a locally inspired food menu in its in-store restaurants.

What steps did Ikea take to cater to Indian consumers?

Ikea invested in training its workforce to emphasize customer service and cultural sensitivity.

What potential risks did Ikea identify before entering India?

Potential risks included regulatory hurdles, supply chain disruptions, and cultural differences.

How did Ikea mitigate the identified risks?

Ikea worked closely with local partners, adapted its business model, and continually refined its strategies based on local market feedback.

When and where did Ikea open its first store in India?

Ikea opened its first store in Hyderabad, India, in 2018.

What was the outcome of Ikea's feasibility study and its impact on its entry into India?

Ikea's thorough feasibility study allowed it to understand the unique challenges of the Indian market and adapt its offerings, pricing, and strategies accordingly, leading to a strong foothold in the new market.