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The Swedish home furnishing giant IKEA is projecting a sales growth of over 10% for its India business in the financial year 2025. This robust forecast is part of a strategic shift by the company to accelerate its expansion after a period of slower growth during the pandemic. To achieve this, IKEA is adopting a new multi-format approach, which includes opening a mix of traditional large stores, city stores, and a new format of smaller outlets ranging from 2,000 to 5,000 square feet. The company's focus is on enhancing its presence and affordability in the Indian market by establishing low-cost fulfillment and logistics operations.
In a major push to capture a larger share of the Indian market, IKEA, the world's largest furniture retailer, expects its business in India to grow by more than 10% in the current fiscal year. Beginning with its first store in Hyderabad in 2018, the company has since expanded its India retail operations to include locations in Navi Mumbai, Bengaluru, and a recent city store in Delhi. Advertisement
According to Tolga Oncu, Ingka Group's Retail Manager, the company is experiencing a "catch-up" phase in India and is growing faster here than in many of its other global markets. This positive outlook follows a period of stagnation caused by the global health crisis.
To further fuel this growth and increase its penetration in the continent-sized Indian market, IKEA is introducing a new expansion strategy. The company will open a variety of store formats, including its well-known large "Blue Box" stores, smaller city-center stores, and a new, more compact format of 2,000 to 5,000 square feet. This multi-pronged strategy is designed to bring the brand closer to a wider range of Indian consumers.
IKEA is also strategically focusing on making its products more accessible to India's value-conscious consumers. By concentrating on low-cost logistics and fulfillment, the company aims to lower its product prices, thereby enhancing its affordability and competitive edge in the market. This renewed focus on affordability and a diversified store portfolio positions IKEA for significant growth as it looks to solidify its footprint across the country.
Source: PTI
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