Swedish giant Ikea is tackling the $40 billion Indian market for home furnishings, taking on local furniture makers in places like Hyderabad's bustling Nampally market.
Ikea hopes to win over India's growing consumer class with its clean, air-conditioned stores and unique offerings. It says India is a test case for whether to keep shifting resources toward emerging economies, including Latin America and China, given the saturation of markets in Europe and the United States — and the possibility of another global recession.
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In this Dec. 17, 2018, photo, two men transport chairs purchased from a shop at the Nampally furniture market in Hyderabad, India. Such furniture markets, where customers haggle over prices and work with carpenters to design made-to-order housewares, is the competition Swedish giant Ikea faces in tackling the $40 billion Indian market for home furnishings, which is growing quickly along with the country’s consumer class. Ikea declined to break out India revenues, but Forrester Researcher analyst Satish Meena said that within five years the company hopes to capture $4 billion annually _ or 10 percent of India’s furniture and home goods market. (AP PhotoMahesh Kumar A.)
FILE- In this Aug. 9, 2018, file photo, customers sit at the restaurant inside Ikea's's first store in India as it opened in Hyderabad, India. In Hyderabad’s bustling Nampally furniture market, customers explore a crowded labyrinth of shops, haggle over prices and work with carpenters to design made-to-order housewares. This is the competition Swedish giant Ikea faces in tackling the $40 billion Indian market for home furnishings, which is growing quickly along with the country’s consumer class. (AP PhotoMahesh Kumar A, file)
In this Dec. 17, 2018, photo, a cycle rickshaw puller prepares to transport mattresses from the Nampally furniture market in Hyderabad, India. Just 20 kilometers (12 miles) from Hyderabad’s Ikea, Nampally remains a beehive of activity, demand for India’s traditional custom-built furniture remains high. But Ikea already is adding to pressure on Indian furniture sellers’ profits and could eventually take a bigger bite of the market. (AP PhotoMahesh Kumar A.)
In this Dec. 17, 2018, photo, a salesman checks his mobile phone as he waits for customers at the Nampally furniture market in Hyderabad, India. Such markets are the competition Swedish giant Ikea faces in tackling the $40 billion Indian market for home furnishings, which is growing quickly along with the country’s consumer class. Ikea says India is a test case for whether Ikea should keep shifting resources toward emerging economies, including Latin America and China, given the saturation of markets in Europe and the United States, and the possibility of another global recession. (AP PhotoMahesh Kumar A.)
In this Dec. 17, 2018, photo, workers unload a wardrobe from a truck at the Nampally furniture market in Hyderabad, India. This furniture market, where customers haggle over prices and work with carpenters to design made-to-order housewares, is the kind of competition Swedish giant Ikea faces in tackling the $40 billion Indian market for home furnishings, which is growing quickly along with the country’s consumer class. (AP PhotoMahesh Kumar A.)
In this Dec. 17, 2018, photo, a salesman yawns while waiting for customers at the Nampally furniture market in Hyderabad, India. This furniture market, where customers haggle over prices and work with carpenters to design made-to-order housewares, is the kind of competition Swedish giant Ikea faces in tackling the $40 billion Indian market for home furnishings, which is growing quickly along with the country’s consumer class. (AP PhotoMahesh Kumar A.)
In this Dec. 17, 2018, photo, salesmen wait for customers at a shop at the Nampally furniture market in Hyderabad, India. This furniture market, where customers haggle over prices and work with carpenters to design made-to-order housewares, is the kind of competition Swedish giant Ikea faces in tackling the $40 billion Indian market for home furnishings, which is growing quickly along with the country’s consumer class. Six months after Ikea opened its first store in Hyderabad on Aug. 9, the 400,000-square-foot cornucopia of furniture, linens, kitchenware, and other goodies is drawing between 10,000 and 30,000 visitors per day. (AP PhotoMahesh Kumar A.)
Six months after its first store opened in Hyderabad, Ikea's 400,000-square-foot cornucopia of furniture, kitchenware and other goodies is drawing between 10,000 and 30,000 visitors.
In this Dec. 17, 2018, photo, two men transport chairs purchased from a shop at the Nampally furniture market in Hyderabad, India. Such furniture markets, where customers haggle over prices and work with carpenters to design made-to-order housewares, is the competition Swedish giant Ikea faces in tackling the $40 billion Indian market for home furnishings, which is growing quickly along with the country’s consumer class. Ikea declined to break out India revenues, but Forrester Researcher analyst Satish Meena said that within five years the company hopes to capture $4 billion annually _ or 10 percent of India’s furniture and home goods market. (AP PhotoMahesh Kumar A.)
But it's unclear if all that foot traffic translates to big sales. So far the best sellers are priced below 300 rupees ($4.20).
FILE- In this Aug. 9, 2018, file photo, customers sit at the restaurant inside Ikea's's first store in India as it opened in Hyderabad, India. In Hyderabad’s bustling Nampally furniture market, customers explore a crowded labyrinth of shops, haggle over prices and work with carpenters to design made-to-order housewares. This is the competition Swedish giant Ikea faces in tackling the $40 billion Indian market for home furnishings, which is growing quickly along with the country’s consumer class. (AP PhotoMahesh Kumar A, file)
In this Dec. 17, 2018, photo, a cycle rickshaw puller prepares to transport mattresses from the Nampally furniture market in Hyderabad, India. Just 20 kilometers (12 miles) from Hyderabad’s Ikea, Nampally remains a beehive of activity, demand for India’s traditional custom-built furniture remains high. But Ikea already is adding to pressure on Indian furniture sellers’ profits and could eventually take a bigger bite of the market. (AP PhotoMahesh Kumar A.)
In this Dec. 17, 2018, photo, a salesman checks his mobile phone as he waits for customers at the Nampally furniture market in Hyderabad, India. Such markets are the competition Swedish giant Ikea faces in tackling the $40 billion Indian market for home furnishings, which is growing quickly along with the country’s consumer class. Ikea says India is a test case for whether Ikea should keep shifting resources toward emerging economies, including Latin America and China, given the saturation of markets in Europe and the United States, and the possibility of another global recession. (AP PhotoMahesh Kumar A.)
In this Dec. 17, 2018, photo, workers unload a wardrobe from a truck at the Nampally furniture market in Hyderabad, India. This furniture market, where customers haggle over prices and work with carpenters to design made-to-order housewares, is the kind of competition Swedish giant Ikea faces in tackling the $40 billion Indian market for home furnishings, which is growing quickly along with the country’s consumer class. (AP PhotoMahesh Kumar A.)
In this Dec. 17, 2018, photo, a salesman yawns while waiting for customers at the Nampally furniture market in Hyderabad, India. This furniture market, where customers haggle over prices and work with carpenters to design made-to-order housewares, is the kind of competition Swedish giant Ikea faces in tackling the $40 billion Indian market for home furnishings, which is growing quickly along with the country’s consumer class. (AP PhotoMahesh Kumar A.)
In this Dec. 17, 2018, photo, salesmen wait for customers at a shop at the Nampally furniture market in Hyderabad, India. This furniture market, where customers haggle over prices and work with carpenters to design made-to-order housewares, is the kind of competition Swedish giant Ikea faces in tackling the $40 billion Indian market for home furnishings, which is growing quickly along with the country’s consumer class. Six months after Ikea opened its first store in Hyderabad on Aug. 9, the 400,000-square-foot cornucopia of furniture, linens, kitchenware, and other goodies is drawing between 10,000 and 30,000 visitors per day. (AP PhotoMahesh Kumar A.)