Retail major IKEA to double down on India market in 12-18 months
Multinational conglomerate IKEA plans to double the number of its stores and customer touchpoints across the nation over the next 12 to 18 months, according to Jesper Brodin, CEO of Ingka Group, which owns IKEA globally.
New Delhi: Multinational conglomerate IKEA plans to double the number of its stores and customer touchpoints across the nation over the next 12 to 18 months, according to Jesper Brodin, CEO of Ingka Group, which owns IKEA globally.
The expansion will include both large-format stores and smaller outlets in malls and city centres. According to Brodin, the company is committed to rapid expansion in India and plans to increase local sourcing from its current 30 per cent to 50 per cent by 2030 as part of its long-term strategy.
Additionally, he disclosed that plans to open 5–6 new touchpoints in India every year over the next five years. IKEA intends to double the number of its stores and customer service centres nationwide. IKEA has big plans for the Delhi NCR area as part of its retail expansion, with big stores opening in Noida and Gurgaon.
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Two additional large stores are also planned for South India, though the precise locations have not yet been disclosed. IKEA currently runs three sizable stores in Bengaluru, Navi Mumbai, and Hyderabad. The company has already invested Rs 10,500 crore in India and has ventured into online retail, providing 24-hour delivery services in a few locations.
Regarding sourcing, IKEA has 45 Indian suppliers, mostly in the textile and toy industries. The company’s products are well-known throughout the world for their modern design, affordability, and usefulness. The Swedish firm anticipates India to be its fastest-growing market over the next 20 years, with a particular emphasis on customer experience, product range, and expansion.
In order to reach a larger consumer base, IKEA’s growth strategy consists of a combination of large-format stores, smaller city centre outlets, and an online presence. Since its 1943 founding in Sweden, IKEA has expanded to become a major player in the home furnishings industry, operating more than 400 stores across multiple nations.
