Why IKEA Failed in the Indian Market?

Team TheCodeWork

18 June 2024 2 minutes read

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While it might be an overstatement to say that IKEA “failed” in the Indian market, the company has undoubtedly encountered significant challenges.

Here are some key points that we at TheCodeWork came up with, to support the statement that “IKEA failed in India” by relevant statistics:

Sales Performance Below Expectations

IKEA’s sales in India have not met the company’s high expectations. Despite its initial optimism, IKEA’s sales in India have fallen short of expectations.

Limited Store Expansion

The expansion of IKEA stores in India has been slower than initially planned.

Key Reasons to justify why IKEA failed in India

High Price Sensitivity

Cultural Differences in Furniture Preferences

Challenges with the DIY Model

Competitive Local Market

Supply Chain Issues

IKEA Failed – Can IKEA’s Performance in India Improve?

Subsequently, as expected, technology can play a pivotal role in enhancing IKEA’s operations. How? Well, by making the company more efficient, customer-centric, and adaptable to market needs. Here are several ways technology can aid IKEA:

Improving Supply Chain Management

Enhancing Customer Experience

Optimizing In-Store Experience

Personalized Marketing and Customer Insights

Consequently, integrating advanced technologies into its operations can help IKEA enhance efficiency, improve customer experiences, and stay competitive in a dynamic market. By leveraging IoT, AI, AR/VR, robotics, and data analytics, IKEA can optimize its supply chain, personalize customer interactions, and streamline operational processes, ultimately driving growth and success in the modern retail landscape.


However, the fact that IKEA failed in its journey in the Indian market has been fraught with challenges, from cultural misalignments and high operational costs to stiff competition from local players. The company’s sales figures, slow store expansion, and adaptation issues reflect the difficulties faced in a diverse and price-sensitive market like India. To improve its performance, IKEA needs to continue adapting its strategies, potentially including more localized products, improved supply chain logistics, and better alignment with consumer preferences.


Team TheCodeWork

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