IKEA India to invest ₹10,500cr, expand store count to 30
What's the story
Swedish furniture giant IKEA has announced its plan to more than double its investment in India over the next five years. The company plans to invest over $2.2 billion as part of a strategy to open more stores and increase local sourcing. As per Patrik Antoni, CEO of IKEA India, the company intends to increase their store count from six to 30, with a focus on major markets such as Delhi, Bengaluru, Mumbai, Hyderabad, and Chennai.
Online strategy
IKEA's unique approach to online expansion in India
IKEA plans to start online operations before opening a physical store in new cities, a first for the company globally. Bhavana Jaiswal, country e-commerce integration manager at IKEA, said this is because young consumers are increasingly shopping online to avoid traffic. The company will soon start accepting online orders in Chennai and Coimbatore among other cities where it doesn't have a physical presence yet.
Production increase
IKEA's plans to boost production and sourcing in India
IKEA also plans to double its production for domestic stores and exports to $930 million. This move comes as global brands are ramping up export production in India to cut costs. Despite US President Donald Trump's tariff hike on imports from India, Antoni said it hasn't impacted IKEA's Indian suppliers much as the brand mostly ships more to other markets.