Swedish furniture giant IKEA is doubling down on India’s vast growth potential, driven by the country’s robust economic expansion and youthful demographic, according to IKEA India CEO Patrik Antoni. Speaking to PTI, Antoni highlighted a 30-year growth horizon fueled by a burgeoning population of young families entering the consuming class. On Wednesday, IKEA marked its entry into the northern market with a 15,000-square-foot city store in West Delhi, complementing its omnichannel strategy of large-format stores, smaller city outlets, and a strong online presence.

India, a top-10 sourcing market for IKEA globally with €400 million in annual procurement, has been a key supplier for over five decades. Since launching retail operations in 2018 with its first store in Hyderabad, IKEA has expanded to Navi Mumbai, Bengaluru, and now Delhi NCR, with additional stores planned in Noida and Gurgaon. Antoni announced an ambitious goal to increase local sourcing for Indian retail operations from 30% to 50% by 2030, leveraging larger purchase volumes and collaboration with local suppliers. “Volumes are needed to get bigger suppliers to work and operate for us,” he noted.

The new Delhi city store, following the launch of online sales in the region in March 2025, reflects IKEA’s strategy to blend physical and digital retail. With online sales contributing 30% to its ₹1,852.7 crore revenue in FY24, IKEA anticipates further growth in e-commerce. “We probably will see an increase of that share,” Antoni said, while emphasizing the importance of physical stores for customer experience. The company plans to replicate the city store model in cities like Lucknow and Chandigarh, combining online and offline channels to boost sales. “The combination of offline and online is so far the success recipe for us,” he added.

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IKEA’s large-format stores, spanning 400,000 to 500,000 square feet, are typically located on city outskirts, as seen in Hyderabad, Mumbai, and Bengaluru. In contrast, smaller city stores, like the new Delhi outlet in a shopping mall, aim to bring IKEA closer to urban customers. “The need today of being closer to the customer is bigger than ever,” Antoni explained, citing changing consumer behavior driven by online convenience. This approach enhances accessibility while maintaining the appeal of IKEA’s iconic large stores.

Affordability remains a cornerstone of IKEA’s India strategy. By offering lower average ticket prices, the company aims to attract a higher volume of visitors in India’s major cities. Despite higher property rentals, Antoni noted that lower operational costs balance the business case, making India an attractive market. “We are optimistic at this moment,” he affirmed.

With plans to expand its footprint and deepen local sourcing, IKEA is poised to capitalize on India’s demographic and economic strengths. The combination of strategic store formats, increased local production, and a focus on affordability positions IKEA to capture a significant share of India’s growing home decor and furniture market over the next three decades.

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