NEW DELHI: India has emerged as one of biggest growth markets for Swedish home furnishings retailer Ikea, as it expands its presence in the country.
Despite a global slowdown in the home furnishings market, Ikea, with revenues exceeding 45 billion euro in FY24, experienced strong growth in India and remained resilient, amid weak consumer demand.
“Affordability is a key focus for us. In the last two years, Ikea India has lowered prices up to 16-39% in line with its global commitment and investment to pass on the benefit to the customers. This was a global move by Ikea to stay true to its affordability promise,” Susanne Pulverer, CEO & chief sustainability officer, Ikea India told TOI in an interview.
In FY24, Ikea substantially lowered prices across 63 markets to push sales in a shrinking home furnishing market. (Ikea financial year runs from Sept 1 to Aug 31). Of the 7,000 products sold at Ikea, nearly 1,000 are priced under Rs 200, ensuring that even those with tighter budgets can find something to purchase, she added. “We have nearly 300 million visitations (online and offline). And 30% business comes from online and it is also our fastest growing channel,” she added
The Swedish firm, which entered the country in 2018, announced its next phase of growth on Thursday by entering north India – the country’s largest home furnishings market. The company will start servicing north India, with start of online delivery across Delhi-NCR and nine satellite cities, including Agra, Prayagraj, Amritsar, Chandigarh, Jaipur, Kanpur, Lucknow, Ludhiana and Varanasi, starting March 1.
Expressing confidence in the India growth story, she said, “We believe in India and it’s a long-term investment to come to the market. Of course, the size in itself, but also where it’s growing and the opportunities that we see coming in India.. We have just scratched the surface to start with these four stores and the online (business). There is so much more that we will do.”