IKEA Doubles Down on India: Expanding Stores and Sourcing Locally to Tap into Growing Market

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In a major boost to India's retail sector, Swedish furniture giant IKEA has announced plans to more than double its investment in the country to over 200 billion rupees ($2.20 billion) within the next five years. The move is part of IKEA's strategy to increase its presence in India, with plans to open more stores and source products locally. IKEA, which first entered the Indian market in 2018 with a store in Hyderabad, will now begin accepting online orders in four new cities, including Chennai and Coimbatore. This move is significant as it marks the first time IKEA will start online operations before opening a physical store in a new city. According to Patrik Antoni, CEO of IKEA India, the company's sales in the country have grown by 6% to 18.61 billion rupees in the year ended August 2025. IKEA aims to quadruple its sales in India, with plans to expand its store count to 30 from the current six. The company's online sales currently account for over 30% of its total sales in India, and IKEA aims to increase this to 40% in the coming years. Additionally, IKEA will double its production for domestic stores and exports to 800 million euros ($930 million). IKEA's move comes as global brands are looking to increase their presence in India, driven by the country's growing demand and the need to cut costs. The US has imposed tariffs on Indian imports, forcing many industries to find new clients in other countries. However, IKEA's Indian suppliers have not been significantly affected, as the company ships more to other markets. Bhavana Jaiswal, country e-commerce integration manager, said that the company's decision to start online operations before opening a physical store is a response to the changing consumer behavior in India, where young consumers are increasingly shopping online to avoid traffic congestion.