Despite an economic slowdown affecting consumer spending, IKEA India is betting big on the market with a strategic expansion plan. The home furnishing giant is set to introduce smaller, more accessible store formats while keeping a strong focus on localized furniture to attract Indian consumers.

According to Adosh Sharma, Country Commercial Manager of IKEA India, the company aims to ensure seamless accessibility through its 'one click, 30 minutes away' approach. This means customers can either visit a nearby IKEA store or order products online and get them delivered within 30 minutes.

Introducing the Smaller IKEA Store Format

Unlike its traditional large-format stores, which span several lakh square feet, IKEA is launching compact stores ranging from 20,000 to 40,000 square feet. These newer, smaller stores will provide a unique shopping experience, allowing customers to see, feel, and try out the latest furniture range before making a purchase.

Additionally, IKEA India is introducing 'order points'—dedicated spaces where customers can plan and customize their furnishing needs without visiting a massive store.

Localized Furniture to Cater to Indian Consumers

Understanding the unique requirements of Indian households, IKEA India is adapting its product lineup with more localized furniture options. These products will be designed to fit Indian lifestyle preferences, ensuring affordability and relevance across different demographics.

Sharma emphasized that IKEA’s diverse pricing strategy—offering furniture and home essentials at multiple price points—will help the company reach a wider audience.

Online and Food Business Gaining Traction

Beyond physical stores, IKEA India’s online business is experiencing strong growth. Customers across the country are increasingly shopping online for furniture and home solutions, making e-commerce a key pillar of IKEA’s strategy in India.

Moreover, food services play a significant role in IKEA’s business model, accounting for nearly 8% of the company’s total revenue in India. With a focus on expanding its food offerings, IKEA plans to integrate more Indian flavors into its in-store restaurants.

Navigating the Consumption Slowdown

While the overall economic slowdown has impacted retail consumption, IKEA remains optimistic. The company believes that its wide range of products at different price points will help attract customers across income segments. Additionally, focusing on compact stores and localized products ensures that the brand stays relevant and competitive in the Indian market.

Future Roadmap: Expanding Presence Across India

With its new strategic approach, IKEA India is set to make its furnishing solutions more accessible. The company aims to expand into tier-2 and tier-3 cities with its compact store formats, enabling a faster shopping experience for Indian customers.

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With IKEA’s new expansion strategy, Indian customers can expect a more accessible, localized, and convenient furniture shopping experience!