Ikea eyes omnichannel expansion and local sourcing in India
Ikea is embarking on a multifaceted expansion strategy in India as it enters its second phase of growth in the country. The company's plans include diverse retail formats, online operations in Delhi-NCR by the end of 2024, and increased local sourcing to make its products more affordable for Indian consumers.
Susanne Pulverer, CEO of Ikea India, emphasized the company's commitment to long-term growth in the Indian market.
She stated, «Our next growth phase in India looks very promising and full of opportunities. IKEA is committed to India and here for the long term.
We are looking at an omnichannel expansion in India with diverse retail formats to come closer to the many people in India.»
In this new phase, Ikea plans to accelerate its expansion, building on the insights gained from its first five years of operations in India. The company has already invested Rs 10,500 crores to establish five stores in India and has announced investments in two large shopping centers in Gurugram and Noida, both featuring integrated Ikea stores.
Delhi NCR is identified as Ikea's next significant market, with online operations set to commence by the end of 2024, followed by the opening of the Ingka Centres Gurugram project in 2025.
After Delhi, Ikea is considering expansion into other cities such as Pune and Chennai.
Pulverer stressed the importance of establishing a strong omnichannel presence in each market, combining flagship stores with different format services fulfillment setups. She noted that full-size Ikea stores have performed well in India, serving as the foundation for their retail strategy.
Regarding investments, Pulverer hinted at a long-term commitment to India, saying, «We are only in the beginning of reaching people in
