Ikea's Remarkable Growth in India

Despite a global slowdown in the home furnishings market, Ikea has identified India as one of its biggest growth markets. With revenues exceeding 45 billion euro in FY24, the Swedish home furnishings retailer has shown strong resilience and growth in India, even in the face of weak consumer demand.

Affordability at the Core

Susanne Pulverer, CEO & chief sustainability officer of Ikea India, emphasized the company's focus on affordability. Over the last two years, Ikea India has reduced prices by up to 16-39%, aligning with its global commitment to pass on benefits to customers. This strategy is part of Ikea's global move to uphold its promise of affordability, with nearly 1,000 of its 7,000 products priced under Rs 200 to cater to budget-conscious consumers.

Expanding Reach in North India

Ikea announced its next phase of growth by entering North India, the country's largest home furnishings market. Starting March 1, the company will begin online delivery services across Delhi-NCR and nine satellite cities, including Agra, Prayagraj, and Jaipur, among others. This expansion reflects Ikea's confidence in the Indian market and its long-term investment strategy.

Future Prospects

With nearly 300 million visitations (online and offline) and 30% of its business coming from online sales, Ikea views India as a market with vast potential. The company has just begun to tap into the Indian market with four stores and its online business, indicating a promising future for Ikea's growth in India.