With the booming economy, massive population, growing e-commerce category, diverse consumer, and penetrating digital marketing. India has it all, but then why are a few companies still making losses?
Well, India is a land of contradictions. The Indian market is price sensitive, where affordability and sustainability drive purchases, but at the same time, they crave premium products with aspirational products, for which they are ready to stretch their budget.
Well, the Indian market is too confusing, and as a brand, you have to place your brand strategically to get success in India. Don't believe me? Let’s take an example to understand it better from a marketing perspective.
Ikea came to India in 2018, with a well-established name and a vision of dominating the furniture industry, and till now they have not made any profits as of now. So, is it the Ikea or the Indian market that is not ready for e-commerce for furniture? But I don’t think that is the case.
As difficult as it is to penetrate the market, brand placement is your key, and if you do it right, you’ll always have them as your loyal customer if the products are good. But is there one problem with affordability?
Harsh truth about selling to Indian consumers: I’ll explain it with two examples, and let me know your opinion.
TATA NANO DISASTER: When Ratan Tata saw the plight of middle-class people on the roads, seeing a family crammed onto a bike with a noble vision, he decided to build the Tata Nano and provide them safety and affordability, and they did it pretty cheap. But did it work?
No, it failed badly due to its marketing of cheap and affordable for everyone. Now, its being taught in Ivy League as an example of bad marketing.
But what about Apple products, which are too costly in India?
APPLE: Apple products are mostly owned by middle-class people, who are trying to show off and look rich, for which they are under debt or have taken a loan for it.Apple does not merely sell products; they also sell them with a symbol of status. Most of the families have stretched their budget for it, as Apple is selling aspirations, not affordability.
Then what about Ikea? What are they failing to do correctly?
Well, focusing too much on affordability. Ikea needs to reposition itself beyond cheap and start selling to dreamers with more aesthetic, trendy, and Instagram-worthy lifestyles.
To conclude: Sell the dream of a premium lifestyle, not just the price. Frame sustainability as a new sexy and luxury. IKEA must focus on convenience and ready-to-use options.
The Indian market is a goldmine, but it rewards brands that understand aspirations, not just affordability. If IKEA adapts, it won’t just survive—it will dominate.
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