Technology has seeped into critical aspects of businesses allowing them to be both efficient and flexible and the furniture supply chain too cannot remain isolated from this development; more so, because of the emerging business prospects.
Mr Jain asserted that embedding technology at the core of operations is now paramount. “I think one word that is synonymous with agility is technology. Every company in the furniture supply chain has to become a technology company if we want to remain agile to our consumer needs. And not just for domestic demand but also for various cross border demands which is a unique opportunity emerging from India.” In the backdrop of a concept like omnichannel; a digital transformation that extends across every tier of the supply chain- from raw material procurement and logistics to manufacturing, design, solution development, and retailing, this is an important observation. Mr Jain insisted, “It’s high time the industry takes technology seriously and integrates it into its very core. By embracing this digital evolution, the furniture sector can unlock a world of possibilities, aligning with the ever-changing demands of consumers and cross-border markets, ensuring its sustained growth and adaptability in the years to come.”
The retail sector, meanwhile, has been quick to embrace technologies like AI. Mr. Bansal pointed out that for IKEA and the industry as a whole, this trend is set to deepen further. “Today’s consumers are highly informed. They come to the store already knowing what they want, often educating us in the process. This trend will only intensify in the next five years.” In the context of this transformation, he recognized the impact of COVID-19, which has acted as a catalyst for these changes.
Expanding on the insights gained from the experiences during the COVID period, Mr. Lohia added “COVID has also taught us that agility is very important. We were accustomed to being far more product centric, meaning we made products and offered them to customers. However, the landscape is changing, and now, customer-centricity is becoming more important. This shift requires agility to evolve with the customer’s requirements.”
According to Mr Dvivedi, IKEA’s strategic focus on metropolitan areas is evident, given the substantial consumer base. Yet, it’s vital to acknowledge the burgeoning consumer potential in Tier 2, 3, and 4 cities. “Are you concerned about potential competition from similar players who might explore these emerging markets?” Mr Bansal reaffirmed IKEA’s commitment to India and emphasized their plans to expand their footprint, not only through physical stores but also by enhancing their online offerings. “We want to work a lot for the country and the country is not limited to a few metros. So we are definitely looking to expand our footprints further in the country.”
This article is a part of our exclusive article ‘Business of Furniture in India 2023-2027’ which is originally published in Furniture Design & Technology (FDT Magazine) November 2023 print issue. If you want to read the full article, please subscribe Furniture Design & Technology Magazine here:
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FDT is a B2B monthly bilingual magazine from India that shares the pulse of the furniture business in India and connects the manufacturers, OEMS, product designers, architects, showrooms, designers and dealers.
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