Ikea, the world’s leading furniture retailer, is shifting its focus to India amid a global sales slowdown, particularly in China. Despite closing multiple stores in the latter due to intense competition and a weak housing market, Ikea’s CEO for India, Patrik Antoni, is amplifying the company’s commitment to this burgeoning market. Antoni has been actively promoting upcoming store openings through engaging social media content, underscoring India’s significance as a “priority market” for the brand.
Currently, Ikea operates six locations across India, with plans to expand that number to approximately 30 over the next five years. This expansion will include a mix of large and small outlets, as well as pick-up points for online orders. Antoni emphasized that Ikea views India not just as a retail opportunity but also as a potential export hub, especially following the India-EU free trade agreement finalized earlier this year. With 30% of Ikea’s Indian sales sourced from local materials, the company aims to increase that figure to 50% by 2030, reinforcing its investment in the local supply chain.
The Indian furniture and home décor market is projected to grow from over $25 billion in 2024 to around $40.8 billion by 2033, as indicated by the Indian Brand Equity Foundation (IBEF). Ikea, however, anticipates even faster growth, estimating the market will reach $48 billion by 2030. This optimism is critical for Ikea, which has faced declining global sales-reporting €44.6 billion (approximately $51.7 billion) in revenue for its last financial year, down slightly from the previous year. The company is now focusing on shifting from large-scale expansions to targeted, precision-driven strategies.
In India, the landscape is dominated by smaller players, with no domestic brands matching Ikea’s scale. The ongoing rise in housing sales since the pandemic presents new opportunities, despite a slight anticipated slowdown in 2025. Ikea’s Indian operations reported a 6% increase in sales last year, driven predominantly by furniture sales, while the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) improved by over 10%. While India’s contribution to Ikea’s global revenue currently stands at ₹18.5 billion ($196.7 million), plans are in place for profitability by 2028 as the company continues its expansion.
Ikea’s existing stores are located in major cities like Hyderabad, Navi Mumbai, and Bengaluru, with the latest opening in Pune earlier this month. The upcoming launch of a new format store, termed “Lykli,” is scheduled for late 2025 in Gurugram. This innovative concept aims to blend entertainment, social interaction, and retail, featuring office spaces and community areas. The company is also set to follow up with a second Lykli outlet in Noida.
The importance of the in-store experience is paramount for Ikea in India, where physical locations account for 70% of sales compared to just 30% from e-commerce. The expansion strategy will emphasize six key urban markets: Mumbai, Delhi-National Capital Region, Bengaluru, Hyderabad, Pune, and Chennai. Last year, Ikea recorded nearly 110 million customer interactions in India, further emphasizing its goal to capture a larger share of the market.
As Ikea maneuvers through challenging market conditions, its strategic focus on India illustrates a commitment to long-term growth, leveraging the country’s evolving landscape to position itself for the future.
Original Source: https://www.cnbc.com/2026/03/26/ikea-has-high-hopes-for-india-as-it-stares-a-global-slowdown.html
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Publish Date: 2026-03-26 05:34:00
