Sweden’s IKEA will greater than double its funding in India to over $2.2 billion throughout the subsequent 5 years, as the worldwide furnishings retailer pursues wider growth by means of extra bodily shops and elevated native sourcing. Patrik Antoni, CEO of IKEA India, confirmed the dedication on Monday, highlighting plans that place India as a precedence progress marketplace for the corporate.
IKEA intends to increase its on-line order service to 4 extra cities the place it presently lacks bodily shops, together with Chennai and Coimbatore in Tamil Nadu. This transfer will enable IKEA to achieve new prospects earlier than launching brick-and-mortar shops, adapting to client tendencies in city India.
“(India) shouldn’t be a big IKEA nation but … However the perception in India may be very sturdy that it will likely be one in all our prime markets,” stated Patrik Antoni, CEO of IKEA India, in an interview with Reuters.
The corporate has reported a 6 per cent enhance in India gross sales, rising to 18.61 billion rupees for the yr ended August 2025, and goals to quadruple this determine by increasing its retailer community to 30 shops nationwide.
IKEA plans to introduce on-line companies in new cities earlier than establishing bodily shops, marking a primary for the model globally. This strategy displays the shift amongst youthful shoppers who more and more favour on-line procuring to keep away from metropolis site visitors, in response to Bhavana Jaiswal, IKEA India’s nation e-commerce integration supervisor.
The Swedish retailer can be set to double home manufacturing for its Indian shops and exports, reaching $930 million, in response to Antoni.
IKEA’s growth aligns with broader tendencies amongst worldwide manufacturers, as extra firms enhance manufacturing and sourcing in India to handle prices and faucet into the nation’s rising client market. Corporations corresponding to Asics and VinFast Auto are additionally rising their sourcing actions to fulfill home demand.
Antoni acknowledged that latest will increase in tariffs on Indian exports to america have had restricted impression on IKEA’s Indian suppliers, because the retailer primarily serves markets in Europe and continues to ship items to a variety of locations.
