An IKEA store
ALMHULT: After putting in over Rs 10,500 crore since 2018 in India, Swedish furniture retailer IKEA is planning a “second wave” of growth in India, focused on accelerated expansion backed by stronger local sourcing and logistics and a deeper omni-channel strategy, said Patrik Antoni, CEO, IKEA India.Discussing the challenges due to the US’s tariff moves, Jesper Brodin, CEO of INGKA Group, the biggest franchisee of Inter IKEA, said the company will adapt to the new scenario. “There’s still significant uncertainty, and while IKEA has limited ability to influence outcomes, the focus is on preparing to adapt, given that its supply chain is far more regional and local than many assume,” he said.Ikea plans to add four-to-six new customer touch-points in India every year, a significant step-up from its current pace of rolling out one store every year or two. The upcoming formats will be a mix of large-format flagship stores, such as those in Hyderabad, Navi Mumbai, and Bengaluru; new outlets in Noida and Gurugram; and smaller city-centre stores, planning studios, and online platforms. “The IKEA experience is no longer limited to a single visit to a large store – it’s a combination of many touchpoints, more convenient and more accessible,” Antoni added. Localisation will be central to IKEA’s India strategy. The company plans to increase local sourcing from 30% today to 50% by 2030. With partnerships already in place with 45 suppliers, many of whom export globally, IKEA is also investing in a design centre to create products tailored for Indian homes, with an emphasis on sustainable and recycled materials, including Indian wood varieties.Antoni said India’s growing role as a sourcing hub strengthens IKEA’s ability to balance supply chain risks. “Localisation and diversification are important for us. As global trade dynamics evolve, India’s position becomes even more critical in ensuring affordability and resilience in our offering,” he noted.Beyond retail, IKEA’s India presence spans sourcing, a global capability centre, a digital hub supporting global teams, and Ingka Centres’ two large shopping centres under construction in Noida and Gurugram.(The writer is in Almhult, Sweden, at the invitation of IKEA Group)
