Preview

Kjhjhjbhkjhj Nhjlj

Satisfactory Essays
Open Document
Open Document
356 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Kjhjhjbhkjhj Nhjlj
Ikea explores giving India touch to different products and designs

A few months ago, a team from IKEA visited Indian homes across various income groups to understand what kind of design and products could work in India.
The world's largest single-brand retailer has proposed to invest up to Euro 1.5 billion (more than Rs 10,000 crore) in two phases to open 25 stores in the country.
Experts say such a localisation strategy will help IKEA connect with Indian consumers.
"Food and home category require huge localisation and consumers can provide insights on what kind of products could sell," Devangshu Dutta, chief executive of retail consultancy Third Eyesight, said.
IKEA had faced initial hiccups in China when it entered the market with global products and ideas.
Maeztu, who worked for IKEA in Europe for 12 years before moving India, said the company will retain its global strategy of large-size store formats and build long-term partnership with its suppliers in the country.
"The beauty of India is that we have been working with the whole pipeline since the beginning," he said. IKEA sources goods from India for its global stores and many of its partnerships here were made more than 25 years ago.
India could be the 45th country to have IKEA stores.
Known for its affordable and modern furniture and home products, IKEA has 336 outlets with annual income of more than Rs 1.7 lakh crore in 2011.
After nearly four months of negotiations with the Indian government over a mandatory 30% local sourcing norm, IKEA Group this week said it will comply with the country's newly diluted single-brand retailing regulations.
Once the government clears its proposal, it will take three years for IKEA to build a supply chain to roll out its first store in India. The company plans to invest Euro 600 million (about Rs 4,100 crore) in the first stage spanning over ten years to set up a chain of ten stores and its allied infrastructure. In the second phase, IKEA plans to bring in

You May Also Find These Documents Helpful

  • Satisfactory Essays

    IKEA’s senior management has in the past pursued an aggressive expansion policy, but management is currently changing direction, adopting a slower rate of expansion and investing in existing stores. The company plans to increase sales by 10% a year to 2020, thereby doubling annual sales revenues. Management is concerned about how expansion in the BRIC countries, particularly India and China, is pursued. There are fears about preserving the…

    • 765 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Ikea's Swedish Ways

    • 362 Words
    • 2 Pages

    There were other issues besides the product offerings. Adverse movements in exchange rates affected the price of the products as well as the cost to make the products. IKEA also addressed this issue by sourcing approximately 45% of their products locally, which makes it less vulnerable to these adverse exchange rate movements.…

    • 362 Words
    • 2 Pages
    Good Essays
  • Best Essays

    Bartlett, Christopher A., Vincent Dessain, and Andres Sjoman. "IKEA 's Global Sourcing Challenge: Indian Rugs and Child Labor (B)." Harvard Business Review (2006). Print…

    • 2551 Words
    • 11 Pages
    Best Essays
  • Good Essays

    In the recent years, the operations of many businesses have become global in nature. The internationalization of businesses phenomenon paved the way for various organizations to conveniently expand in other nations. By penetrating the international marketplace, organizations are able to acquire greater market in which to sell their products or provide business. One of the largest companies that has become global today is IKEA. As Swedish-based company, IKEA is a home furnishing retailer specialist. It started selling nylon stocks, picture frames, pens, table runners, wallets, jewelries and watches. Eventually, they included furniture in their product range. It was in Norway where the first store of IKEA, which is outside of the country, opened. After this, IKEA already expanded to other countries.…

    • 1255 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Ikea Global Marketing

    • 498 Words
    • 2 Pages

    IKEA’s products are manufactured, packaged, and positioned the same way regardless of the country in which they are sold to a global segment.…

    • 498 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The target group in developed market are mainly made up of broad consumer base as compared to emerging markets which is pretty much different, targeting growing urban middle class. Hence, it is a challenge for Ikea lock down the growing urban middle class in order to secure a reasonable share in…

    • 403 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Ikea shareholders

    • 325 Words
    • 2 Pages

    -IKEA helps children in India to gain education and and to prevent the from working as a child labour.…

    • 325 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    In the 50 's and 60 's IKEA forged good relations with its suppliers in…

    • 1626 Words
    • 7 Pages
    Better Essays
  • Better Essays

    IKEA India Entry Strategy

    • 8154 Words
    • 35 Pages

    IKEA originated in 1943 by a 17 year old Ingvar Kamprad using his entrepreneurial skills selling items out of a catalog and continued to expand where his stores is located in more than 30 countries currently. IKEA sells furniture and other household products at a very low price so that everyone can afford them. IKEA is always looking to save money on their packaging, costs, and any other opportunity they get to save money. As a team we thought it would be most beneficial for IKEA to enter into India specifically Mumbai, India. India is one of the most emerging countries and gives IKEA a great opportunity. As a team we feel IKEA should implement interior designers that help people decide which furniture properly fits in their house hold. The interior designer will be extremely knowledgeable and accommodating when helping people decorate their homes.…

    • 8154 Words
    • 35 Pages
    Better Essays
  • Satisfactory Essays

    Marketing and Ikea

    • 589 Words
    • 3 Pages

    How has the globalization of markets benefited IKEA? IKEA has been a great success in its home country. By expanding its market globally, now the same great products are offered in 33 different countries. As the middle class target group enjoys having great looking furniture but at an affordable price. And because of having this strategy there is a lot of demand in which makes IKEA renowned brand. IKEA managed to avoid the costs that associated with shipping the product all over the world. Its strategy to engage with suppliers in each company’s big market has led IKEA to reduce price of its products and boost the number of sales. The main strength of IKEA is low of product price and combines with solid sales performance. The globalization of market made IKEA establish its stores almost in every country in the world as the cost of transportations, labor, and materials can be reduced.…

    • 589 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    case study ikea

    • 2143 Words
    • 9 Pages

    There is no company image transfer to the local market, also there is a limit access to local information and the company is seen as an outsider. By taking the export strategy the IKEA will have a lot of transport costs and have to be aware of the trade barriers and tariffs that are always a disadvantage for the company.…

    • 2143 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    ikea

    • 1913 Words
    • 6 Pages

    IKEA is a multinational corporation with Swedish origin. They retail furniture and some other objects for home and home decoration at a low price, so as many people as possible will be able to afford them and with high quality. The IKEA brand belongs to a foundation in the Netherlands.…

    • 1913 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Swot Analysis of Ikea(Hk)

    • 439 Words
    • 2 Pages

    -Sourcing from China is one opportunity. Sourcing from low cost countries like China would reduce its costs and enable IKEA to concentrate on increasing its market share through competitively priced product offerings.…

    • 439 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    1) How has IKEA succeeded in expanding across the world using a standard range of products and a standard strategy in the home furniture and furnishings industry, in which divergent cultural influences are likely to be at their strongest?…

    • 1614 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    MyNga

    • 3854 Words
    • 16 Pages

    2012 Facts & Figures IKEA retailing worldwide from the IKEA franchisor September 2011 – August 2012 701,000 kWh 7th collection 40 countries 18 The amount of energy saved This year’s IKEA PS 2012 collection With the openings of IKEA Bangkok by each of the IKEA stores that marks the seventh IKEA PS design have switched to a new energysaving lighting system. 1943 The IKEA vision The number of IKEA stores…

    • 3854 Words
    • 16 Pages
    Powerful Essays