Swedish furnishing giant IKEA is actively pursuing an ambitious expansion and growth strategy in India. In an exclusive conversation with Marksmen Daily, IKEA India CFO Murali Iyer shared insights into the company’s roadmap, focusing on business plans, the recent GST revamp, the upcoming festive season, and future store expansion.
IKEA is currently present across four markets in India with 3 large-format stores in Hyderabad, Navi Mumbai, and Bengaluru; two city stores in Worli and West Delhi; one Plan and Order Point in Bengaluru.
Now, the company is now setting its sights on major new markets, with plans to open stores in Chennai, Pune, and Delhi. This initial focus on Tier 1 cities is part of a broader strategy to double its number of retail stores within the next 16 to 18 months. The company’s expansion hinges on its core business pillars: affordability, availability, and sustainability. This measured approach allows IKEA to gauge consumer sentiment and market response before moving into additional locations. This rapid expansion also signals a commitment to significant future investment in the country.
Iyer highlighted the positive impact of the government’s recent GST reforms on retail spending. He views the revamp as a clear reflection of the government’s vision of ‘Sabka Sath Sabka Vikas’ (Together, for everyone’s growth), suggesting that the tax rate cuts will play a vital role in encouraging consumer spending and increasing savings. The company is confident that these monetary policy changes will boost sales, particularly with the festive season on the horizon.
In preparation for the festive season, IKEA is rolling out an expanded range of festive products, special offers, and a curated festive food menu. The company anticipates a strong sales performance, driven by a combination of the benefits of a reworked GST system and the heightened consumer demand typical of the festive period. This strategic timing aligns with the general upswing in retail activity across the country.
Beyond just new stores, IKEA’s expansion in India involves its unique business model that includes a mix of large-format stores, smaller city-center stores, and a strong e-commerce presence. The company also continues to invest in local sourcing and building a robust supply chain to support its growth. IKEA’s long-term vision is to become an integral part of the Indian home furnishing landscape by making its products accessible to a wider demographic and catering to the evolving needs of the Indian consumer.
