Swedish furniture giant IKEA is making a bold move in India. The company plans to more than double its investment to over 200 billion rupees, which is about $2.2 billion, over the next five years. This significant increase aims to fuel rapid expansion across the country.
Expanding Physical and Digital Presence
IKEA will open more stores in India, with a target of reaching 30 locations. Currently, the retailer operates stores in cities like Hyderabad, where it first launched in 2018. In a strategic shift, IKEA will start accepting online orders in four new cities before establishing physical stores there. This includes Chennai and Coimbatore in Tamil Nadu. This online-first approach is a global first for IKEA, designed to cater to young consumers who prefer shopping online to avoid traffic.
Sales Growth and Future Goals
In the year ending August 2025, IKEA's sales in India rose by 6% to 18.61 billion rupees. Patrik Antoni, the CEO of IKEA India, expressed strong confidence in the market. He stated that the company plans to quadruple its sales in the coming years. Antoni believes India will become one of IKEA's top markets globally, despite not being a large market yet.
Boosting Production and Sourcing
IKEA will also double its production for domestic stores and exports to 800 million euros, equivalent to $930 million. This move aligns with a broader trend where global brands are increasing export production in India to cut costs. Other companies, such as shoemaker Asics and carmaker VinFast Auto, are also stepping up sourcing to meet domestic demand.
Despite recent challenges like increased U.S. tariffs on imports from India, IKEA's Indian suppliers have not been significantly affected. Antoni explained that since most of IKEA's stores are in Europe, the brand ships more to other markets, mitigating the impact of tariff changes.
This expansion plan highlights IKEA's commitment to growing its footprint in India, leveraging both online and offline strategies to capture a larger share of the market.
