IKEA India, the global home furnishing giant’s local arm, has outlined an ambitious vision for the next three decades, citing India’s robust economic growth and youth-driven consumption patterns as the primary drivers of long-term expansion. The company’s strategy involves a well-integrated omnichannel retail model, increased local sourcing, and the launch of innovative store formats tailored to Indian urban needs.

A Market with Decades of Promise

According to IKEA India’s leadership, India’s demographic advantage, combined with rising disposable incomes and urbanisation, presents one of the most promising growth markets in the world. The country’s young, consumption-oriented population aligns perfectly with IKEA’s business model, which focuses on affordable, stylish, and functional home solutions.

The Swedish retailer expects this favourable environment to support over 30 years of sustained growth in the country.

Omnichannel Strategy for Wider Reach

IKEA has entered the second phase of its India growth journey with a blend of large-format stores, smaller city stores, and online sales. This strategy ensures accessibility for customers in both metropolitan and tier-two cities.

Currently, online sales account for around 30% of IKEA’s revenue in India. The company aims to strengthen this share by creating synergy between physical and digital touchpoints. According to Mr. Patrik Antoni, CEO of IKEA India, this “success recipe” will significantly boost overall sales and brand reach.

City Stores: A Strategic Shift

In a major expansion move, IKEA recently opened its first city store in Delhi, located in West Delhi’s high-footfall urban zone. The 15,000 sq. ft store is a compact version of its traditional large-format outlets, designed to fit into shopping malls and urban centres.

Following positive customer response from its online operations in Delhi over the past six months, the retailer now plans to replicate the city store model in Lucknow and Chandigarh. This allows IKEA to operate closer to customers, offering convenience without compromising on brand experience.

Boosting Local Sourcing

One of the company’s significant operational shifts involves increasing local sourcing for its Indian retail business from the current 30% to 50% by 2030. This will be achieved through close collaboration with purchasing teams and leveraging higher procurement volumes as expansion continues.

IKEA has been sourcing products from India for over five decades, making the country one of its top 10 global sourcing markets. Annually, the company purchases goods worth €400 million (US$ 468 million) from Indian suppliers for its international operations.

Balancing Costs with Opportunity

While property rentals in India are relatively high, IKEA has found that lower operational costs help maintain a viable business case. The company’s store designs, operational models, and digital integrations are carefully optimised to align with Indian market realities.

The Road Ahead

With new formats, a stronger sourcing base, and a focus on digital-physical integration, IKEA is well-positioned to deepen its presence in India over the next three decades. As the company continues to adapt to India’s diverse consumer landscape, it envisions becoming a household name synonymous with affordable, sustainable, and stylish home solutions.

IKEA’s expansion plan underscores its confidence in India’s economic resilience and consumer potential, reaffirming its commitment to making India one of its most important global markets.

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