Do you really understand what local furniture giant means?????
Local Furniture Stores in Pakistan are joke in front of Local Indian Furniture Chains.
And this is what Indian Furniture Giants are doing to Ikea.
https://economictimes.indiatimes.co...ty-with-hometown-ads/articleshow/65359044.cms
Kishore Biyani ambushes IKEA party with HomeTown ads
By
Rasul Bailay
, ET Bureau|
Updated: Aug 11, 2018, 08.58 AM IST
NEW DELHI: IKEA had a gate-crasher of sort when the world’s largest furniture retailer opened its first store in India: Kishore Biyani.
Biyani’s home furnishing chain, Home-Town, strategically placed ads on the walls just across the IKEA outlet. Those were visible even from the inside of the sprawling store in Hyderabad’s Hitec City.
The ads sought to entice customers with 50% discounts. “What is not there … is here,” they declared, with the word “there” written in dark blue with yellow background — the signature colours of IKEA.
“Here”, of course, was in the red Home-Town colour. “Free lifetime maintenance in more than 50 cities across India,” the advertisements read.
That indeed was ambush marketing, Biyani admitted. He also didn’t see anything wrong in the ads.
Neither did IKEA, with its India country manager Ulf Smedberg calling the interest from Biyani as “super interesting”.
“That is fair,” Biyani said on the ads, while declaring his admiration for the Swedish giant as a retailer. In fact, ‘Leading by Design – The IKEA Story’ is his favourite book on retail.
HomeTown, a local knock-off of IKEA that operates through much smaller stores, will benefit from the entry of the Swedish retailer to the market, Biyani said.
“Our business is bound to increase, and the category will be created by IKEA.”
A possible indication: On Thursday, when IKEA opened its first India store, “our sales have gone up at the three Hyderabad stores”, he said.
In an emailed response to ET’s questions, IKEA’s Smedberg said with many players together, the company believed the home furnishing sector in India would grow and there would be room for more growth. On the HomeTown ads, he said: “This is a creative and fun way to reach out to us and we feel very welcome in India.”
An estimated 40,000 people visited IKEA’s 400,000 sq ft big box store on Thursday in Hitec City, a technology hub that houses offices of multinationals like Google, Microsoft, Amazon, Deloitte, Accenture and Dell. The retailer said it signed up about 9,000 loyalty members on the first day and its cafeteria, the largest for any store for the company, sold about 16,000 pieces of samosas and 5,000 cups of yogurt.
Biyani saw it coming and seized the opportunity to troll IKEA and pitch his own chain.
“IKEA is ranked from 1-100 and everybody else starts from 101. They are a unique and probably the best retailer of the world,” said the founder of the Future Group, which operate more than 2,000 outlets from supermarkets to department store chains. “IKEA is IKEA and they are an institution.”
Biyani said the HomeTown ads were getting noticed. “We are the largest furniture retailer in India but we don’t get that kind of attention otherwise.”
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@Karna_007 @Shamsher1990
Kindly note Ikea has to compete with local furniture vendors which caters to customers according to specific customers tailored needs, at cut throat prices.
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https://economictimes.indiatimes.co...es-for-ikea-in-india/articleshow/65332495.cms
DI-why? Five challenges for Ikea in India
AFP|
Updated: Aug 09, 2018, 01.56 PM IST
After years of delay, Ikea on Thursday opened its first store in India in Hyderabad. AFP picks five challenges the Swedish furniture giant will face while trying to navigate a difficult local market.
Making money
Ikea is spending $1.5 billion in India but analysts reckon it is going to be several years before the company with a presence in 49 countries starts seeing significant returns on that investment.
The home goods retailer has already spent close to $750 million procuring Indian sites for four stores, including the massive, new 37,160-square-metre (400,000-square-feet) outlet in Hyderabad.
Ikea will offer more than 1,000 products under Rs 200 ($2.91) but experts say it faces a difficult balancing act between setting prices low enough to attract cost-sensitive consumers but high enough to reel in the status-conscious rich.
"It needs to get its brand image and product pricing right lest the growing Indian middle class steers away from the brand," Sowmya Adiraju, an analyst at research firm Euromonitor, told AFP
Prising Indians away from local furniture makers that they trust is going to be difficult for Ikea, according to retail experts.
Indian towns and cities are not short of small, family run shops whose owners will visit your home and then build furniture from scratch based entirely on your specific furnishing needs.
Patrik Antoni, Ikea's deputy country manager for India, told AFP in a recent interview that the Swedish retailer had visited more than one thousand houses to try to understand exactly what Indian consumers want.
Ikea will sell products tailored for India's market, such as kitchen appliances for making traditional rice cakes, but experts warn that getting consumers to abandon their trusted woodworker for larger items will be tricky and take time.
DI-why?
Ikea revolutionised furniture buying in the West with its wide range of ready-to-assemble products at affordable prices but many Indians would be forgiven for wondering why they have to do it themselves.
India's abundant supply of cheap labour means it is not known for its "DIY" culture. Ikea is aware that this may put people off so has teamed up with UrbanClap, an online platform that helps connect handymen with consumers.
But analysts say the absence of UrbanClap in lower tier cities could pose a problem.
Walmart & Co.
Ikea is not the only multinational seeking a large share of India's growing home goods market, which research firm Forrester currently values at $40 billion.
US retail giant Walmart is betting big on the rise of India's middle class too. The world's largest retailer recently agreed to buy a majority stake in Indian e-tailer Flipkart, which sells a wide range of home furnishings.
Ikea will have to contend with popular
Indian online furniture retailers Pepperfry and Urban Ladder as well in a fragmented and competitive market which also includes a smattering of home goods options on Amazon's local website.
Ikea hopes that its walk-in stores and famed restaurants, selling a mixture of Indian favourites like biryani and samosas along with vegetarian versions of its famous meatballs, will give it an edge over its rivals.
Space constraints
Land acquisition is rarely straightforward or cheap in India though with buyers regularly having to jump through bureaucratic hoops and facing long delays.
Finding space big enough for Ikea's trademark large stores in India's notoriously congested cities also poses a challenge.
The Hyderabad outlet is comparable in size to a typical Indian shopping mall but sites procured in Mumbai, Bangalore and the capital New Delhi are reported to be smaller.
Ikea is yet to put a timeframe on when they might open. Afterwards they will look at opening in Pune, Chennai, Ahmedabad, Surat and Kolkata, according to Antoni.
Ikea has said it is considering opening small stores which will just give a sample of what they sell. They will contain screens where people can flick through catalogues before ordering.