Renowned Swedish furniture giant Ikea is ramping up its online expansion strategy to meet the growing demands of digital and e-commerce platforms. As consumer behaviour continues to tilt heavily towards online shopping, businesses across industries are compelled to adapt to this digital shift.
Yet, for some, the transition has been anything but smooth.
Reflecting on this journey is the Global CEO of IKEA, a household name renowned for its innovative approach to furniture retail. Despite entering the online arena later than some competitors, IKEA swiftly adapted, as Brodin explained in an interview with CNBC-TV18.
He highlighted the rapid preparations undertaken during the COVID-19 pandemic, stating, "We were late in entering the online journey. At the time of the outbreak of the pandemic, we had few countries ready, but we managed in 4-5 weeks to get all of IKEA online prepared."
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Brodin emphasised the pandemic's role in accelerating IKEA's digital initiatives, enabling the company to effectively manage both its physical stores and online operations. Notably, he revealed that 87% of IKEA's customers engage with both channels.
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Discussing the role of artificial intelligence (AI), Brodin underscored the need for businesses to adapt and rethink strategies amidst ongoing global crises. “How you reach people is part of what we do. Digitalisation is an important aspect of that including artificial intelligence (AI) and whatnot," he said.
He emphasised IKEA's commitment to sustainability as a key aspect of its transformation, stating, "Maybe the biggest transformation for us is sustainability."
This furniture retailer has a big-format store in Navi Mumbai in addition to another small-format store at Worli. Apart from Mumbai, Ikea is also present in Hyderabad and Bengaluru with its big-format stores. It is also set to open stores in Delhi-NCR, including in Gurugram in various formats.
First Published: Feb 28, 2024 11:38 AM IST
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