IKEA hopes Indians change furnishing habits; the country marketing manager recounts the hurdles

IKEA, the Sweden-based multinational conglomerate that designs and sells ready-to-assemble furniture, kitchen appliances, decoration, home accessories, etc., as its primary business, entered India six years ago. Despite being the world’s largest furniture retailer, with a presence in over 64 countries, IKEA’s entry into India has been a slow and steady process, according to Anna Ohlin, IKEA India’s country marketing manager.

Ohlin was speaking at IKEA India’s second annual brand experience event, called IKONIC. According to Ohlin, who has previously worked extensively in the Japanese and Swedish markets, there is still a lot of work to be done regarding the brand’s awareness.

According to her, there are various similarities between India and IKEA’s brand ethos.

“When we entered the market, we discovered that people love their homes in India. Indians also enjoy eating and socialising, which is something that IKEA also values as a brand. Living with children is important here and that is something we also emphasise at IKEA. Indians also love a good deal, so we found a lot in common which was a good start.”

However, there are some unique challenges to India as a market, she adds.

“There is low spending on home furnishings and low confidence in making changes to homes. There’s a bit of inertia, where people tend to make do with what they have until it breaks down. It’s not so much about how the home looks, but more about how it feels. If they feel good at home with what they have, then they’re happy.”

She says the brand wants to address these challenges at a lighter pace and doesn’t want to tell people what they should or should 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.”

The brand addresses these challenges by offering a wide range of home accessories such as pots, mugs, coffee tables etc. along with larger-scale offerings such as beds, wardrobes, bathroom accessories, etc.

“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, India’s furniture market is currently valued at $16 billion (Rs 1.3 lakh crore) and is expected to double by 2027. The organised segment of the market was worth Rs 50,000 crore in 2019, with projected growth to Rs 1,95,200 crore by 2035.

Despite a number of branded players such as Pepperfry, HomeCenter, Urban Ladder, Jaypore, Godrej Interio, a majority of consumers buy unbranded, locally-made furniture.

Addressing the tough competition in the home furnishing market in India, Ohlin states that India is a market where there’s space for everyone.

“The local carpenter plays an essential role in the market, and we’re happy they’re around because it means home furnishing is on people’s minds. However, we need to communicate more about our customisations and personalisation options. If people knew more about our modular systems, they might consider IKEA as well,” she adds.

As per Ohlin, there’s also a natural shift happening as India becomes a richer country. “The need and desire for upgrades are growing, and the home space will naturally become more important. It takes time to change a culture, but it’s moving in that direction, and we’re here to support that shift.”

Marketing strategy

IKEA’s marketing strategy in India, Ohlin says, is centred around five principles: product, price, function, design, sustainability, and durability. Another key message is 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,” adds Ohlin.

She also mentions that it is easier to build connections with smaller accessories, as they are impulse purchases and are priced very economically. “When people visit IKEA, they often think, 'I deserve something,' and while 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

According to Ohlin, while the festive season is one of the most important periods for them, as many people consider renovating and re-furnishing their homes during this time, it is also a period of tough competition. Most local and branded businesses in the space lure consumers with big discounts.

However, Ohlin mentions that IKEA is not too keen on offering discounts.

“We never want IKEA to become an offer-based company because it’s not sustainable long-term. We want people to think of us for everyday low prices, not just for a big discount during Diwali. We need to be clever in how we communicate this.”

IKEA’s festive marketing for the current year is centred around socialising as a theme. 

“This year, our insight is that people plan their socialising and parties in their minds. However, when the actual event happens, it’s often different. 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.

The film is expected to be released in three to four weeks.

Speaking about their media plan, Ohlin says that India is a country where one needs to utilise all possible mediums. “It’s an interesting landscape with both extremely advanced digital media and strong traditional media like print and TV. We need a 360-degree campaign that includes everything. Digital is always strong, but traditional media cannot be ignored, especially in a market like India.”

FY2025 plans

Last year, IKEA launched a series of short ad films for India centred around ‘organising’ and ‘decluttering’. Ohlin says the campaign was very well received and resonated with audiences.

This year, the brand’s focus is ‘sleep’. The insight is 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 be overwhelming, or even excessive light.

The brand has launched a number of innovative products aimed at improving sleep quality for consumers, including curtains that can block light and sound pollution, coffee tables with built-in air purifiers, and 100% cotton mattresses.