IKEA is a Sweden-based multinational conglomerate that designs and sells ready-to-assemble furniture, kitchen appliances, decoration, home accessories, etc., and entered India six years ago. According to Anna Ohlin, Country Marketing Manager, IKEA India, though it is the world’s largest furniture retailer with over 64 countries across the globe, IKEA has been able to mark its venture into India only on a slow and steady note.
She was speaking at IKEA India’s second annual brand experience event titled IKONIC. According to Ohlin, who has worked extensively in the Japanese and Swedish markets, there is still a lot of work that needs to be done regarding the brand’s awareness.
According to her, there are various similarities between India and IKEA’s brand ethos.
“When we came to the market, we realised people love their homes in India. Indians also love to eat and socialise; that’s something IKEA as a brand too loves. Living with children is important here and that’s something we at IKEA also talk about. Indians also love a good deal, so we found a lot in common which was a good start.”
“IKEA wants to come across as a friend rather than as big corporation. We want to nudge the people a little bit, grab their arms, walk together and say, “Let’s do this.”
“Home furnishings spending is low, and there is a lack of confidence in changing homes. There is some inertia where people continue to make do with what they have until it wears out. It is not about how the house looks; it’s more about how the house feels. If they feel good at home with what they have, they are happy.
She says the brand wants to tackle these issues at a more lighthearted pace and does not want to be preaching or teaching people what to do, or not do. “IKEA wants to come across as a friend rather than as a big corporation. We want to nudge people a little bit, grab their arms, walk together and say, “Let’s do this.
To such challenges, the brand answers by making available a wide array of home accessories ranging from pots, mugs, coffee tables etc. to bigger scale products such as beds, wardrobes, bathroom accessories etc.
“We want people to feel that every day could be better with IKEA.”
“People tend to build a house once, but building a home is an ongoing process. It’s about building a home every day. It’s the little things such as a new candle holder or better plates for a Tuesday dinner that make a difference. We want people to feel that every day could be better with IKEA,” adds Ohlin.
Competition
According to PWC, the furniture market in India is pegged at $16 billion (Rs 1.3 lakh crore) and could almost double by 2027. The organized segment of the market was valued at Rs 50,000 crore in 2019 and is estimated to swell to Rs 1,95,200 crore by 2035.
Despite a host of branded players such as Pepperfry, HomeCenter, Urban Ladder, Jaypore, Godrej Interio, most consumers still purchase unbranded, locally-made furniture.
Addressing the tough competition in the home furnishing market in India, Ohlin says, “India is a market where there’s space for everyone.”
“The need and desire for upgrades are growing, and the home space will naturally become more important. Changes in culture take time, but it’s going that way, and we are here to support such change.
This is a very important role the local carpenter plays in the market, and we are glad he exists because it indicates home furnishing is top of mind. But we only need to talk more about our customisation and personalisation options. If people knew more about our modular systems, they might consider IKEA too,” she adds.
According to Ohlin, there is also a natural transition occurring as India becomes wealthier. “The need and desire for upgrades is increasing, and the home space will naturally become more significant. Changing culture takes time, but it’s going in that direction, and we’re here to support the movement.”
Marketing strategy
According to Ohlin, IKEA’s marketing strategy in India would be pegged on five main propositions: product, price, function, design, sustainability, and durability. The other important message would be that IKEA is easy. “People often get overwhelmed when it comes to making changes to their homes. We want people to feel confident and not overwhelmed. We want them to start small, build confidence and eventually make bigger changes,” he adds.
She elaborates that accessories, much smaller, are essentially impulse buys and come very cheap. “When people visit IKEA, they often feel, ‘I deserve something,’ and though they might not need a bed, they’ll buy something small. Accessories are useful and affordable, but we’re also seeing more people considering us for bigger purchases, although that requires more planning.”
Festive marketing
Though the festive season is considered one of the most important periods for us, as many people think of renovating and re-furnishing their homes, it’s also tough owing to competition. Most local and branded businesses in the space lure consumers with big discounts, ” says Ohlin.
We never want IKEA to be an offer-based company because that’s not sustainable on a long-term basis. We want people to think about us for ‘everyday low prices’, not only for the big discount during Diwali. We have to be clever in the way we communicate this.
This year, our insight is that people plan their socializing and parties in their minds. But when real life kicks in, something else happens. With IKEA, you’re ready for the unexpected, and that’s the storyline we’re exploring in our brand film about unexpected festivities and being ready for any opportunity,” she says.
“It’s an interesting landscape with both extremely advanced digital media and strong traditional media like print and TV.”
Talking about their media plan, Ohlin says, “India is one of those countries where you need to do everything. It’s an interesting landscape-it has super-super advanced digital media-and strong traditional media like print and TV. We need a 360-degree campaign that has everything. Digital is always strong, but you can’t ignore traditional media, especially in a market such as India.”
FY2025 plans
Last year, IKEA ran a series of short ad films for India focussed on ‘organising’ and ‘decluttering’. According to Ohlin, the campaign was highly appreciated and gelled with the audience.
This year, the brand is talking about ‘sleep’. The insight being that India is one of the most sleep-deprived countries in the world. Much of this can be attributed to noise pollution, cluttered homes that can become overwhelming, or even excessive light.
It includes light-blocking curtains and sound pollution-resistant curtains, a coffee table with an air purifier inside, a 100%-cotton mattress, and many more innovating products to help improve consumers’ sleeping quality.
