As IKEA India expands its online delivery footprint to Chennai, Madurai, Coimbatore and Salem earlier this week, CEO Patrik Antoni and e-commerce head Bhavana Jaiswal -- in an interaction with Sanal Sudevan -- outline the Swedish furniture giant’s aggressive growth plans in one of its most promising markets.
What market share are you targeting in India’s home furnishings segment over the next five years, and what is your growth strategy?
Patrik Antoni: The home furnishings market in India is growing at around 8%. As a company, our ambition is to grow faster than the industry average. We plan to quadruple our sales from about €200 million (around ₹2,000 crore) in the next four years. To support this, we plan to open another 27 physical stores, taking the total to over 30 stores across India.
What is driving this aggressive expansion in India?
Patrik: There is a strong belief within IKEA that India is one of our most important future markets. This is driven by population size, favourable demographics, economic development, urban migration, and the sheer scale of unmet home furnishing needs.
How do you see the e-commerce market evolving for home furnishings in India?
Bhavana Jaiswal: Online retail in India is currently dominated by electronics, fashion and beauty. Two years ago, furniture accounted for nearly 7% of online sales. It is a fast-growing category, though perhaps not as rapid as groceries. Over the coming years, the share of furniture sold online will increase, and we hope to play a major role in that growth. As organised retail expands offline, online penetration will also rise.
Are you planning partnerships with local furniture stores to reach remote locations?
Patrik: At present, our focus markets are Delhi, Mumbai, Bengaluru, Pune, Hyderabad and Chennai. Most of our efforts are concentrated on these cities. We are expanding through an omnichannel model—large, medium and small-format stores, online platforms and mobile apps.
When are stores planned for Gurgaon and Noida?
Patrik: Gurgaon may see a store around 2027 and Noida around 2028. However, due to environmental regulations and pollution-related controls, it is difficult to predict timelines precisely.
What is the current contribution of online sales to your revenue?
Bhavana: Last year, our revenue was about ₹1,800 crore, and this year it is expected to be around ₹2,000 crore. Around 30% of our sales currently come from online channels. Interestingly, sales through our website and app are almost evenly split. As we expand further, we expect the app to play a bigger role.
How much of IKEA’s India business is circular or sustainable?
Patrik: In India, we operate Circular Hubs where products are returned under our 365-day return policy or due to damage. In some other markets, we have buy-back programmes, which we have not yet introduced in India. All our products are designed to be disassembled—recyclability begins at the design stage. Circularity is a core principle for IKEA globally.
Are you looking to expand further into office furnishings?
Patrik: We already cater to offices, cafés and hotels, which require higher product quality. Accessories also form a significant part of our offering. About 20% of our revenue comes from the B2B segment, which includes office furniture and hospitality-related furnishings.
What is your view on trade tensions, including those between the US and Europe?
Patrik: Trade tariffs and barriers are bad for business. Over time, they become bad for consumers, who ultimately bear the cost. We export from India and import from Europe and China, so we favour low tariffs across markets.
Has there been any impact on IKEA’s exports to the US from India?
Patrik: The US is one of IKEA’s biggest markets, but we operate in 55 countries. Our share in the US market is around 7%. There has been no major drop in exports from India, as volumes have been absorbed by other markets. About 3% of India-sourced products go to the US. Around 30% of IKEA India’s sales volume is sourced locally, while products worth about €340 million are exported from India to other global markets.
What kind of partnerships do you have with Indian suppliers and artisans?
Patrik: We work with four to five mid- to large-sized Indian suppliers. We provide designs and support them in sourcing raw materials, sometimes helping with bulk procurement. Suppliers must follow strict guidelines on materials, glues and paints. We also work with artisans through social entrepreneurship initiatives.
What is your strategy to further expand e-commerce across India?
Bhavana: Currently, 30% of our sales come from online channels, and our aim is to increase this to 40%. Growth will come from both existing and new markets. For instance, Delhi is a relatively new market for us, offering higher growth potential compared to Hyderabad, where we have been present for six years. We are currently present in 80 cities. Expansion is driven by demand, while balancing profitability and sustainability. Our goal is to ensure last-mile connectivity using 250 electric vehicles. We delayed entering Delhi until we had warehousing in place, as shipping furniture from Mumbai would have increased costs for consumers.