The Indian furniture market has developed over the years and has recorded a rapid growth of high $ 27 billion in 2024 for a projected 40 billion US dollar by 2030. Fast urbanization, internet penetration, simple online purchases and rising available income have all contributed to this growth. There is a way of thinking from Indians to modern, functional and aesthetically appealing furniture that is minimalist and convenient in urban living rooms.
However, the Indian furniture market is dominated by the unorganized sector, which captures 80% of all sales. This prevalence creates obstacles to growth and competitiveness, including a lack of standardized practices, fluctuating prices, limited technological progress, the lack of industry regulations and a limited export potential.
In this scenario, Ikea decided to get his entry in India in 2018 and opened his first shop in Hyderabad. The internationally known Scandinavian furniture and home furniture retailer is recognized for its products for flat-pack products, its DIY culture (do-it-yourself (DIY)) and the immersive business experience. Since then, the company has been expanded by shops in Mumbai and Bengaluru and also offers online purchases in several cities. But Ikea has been in India in India for 30 years, products for its international business. Online deliveries started in Mumbai in 2019 and has since expanded to several other cities. Ikea currently delivers in just four states – Andhra Pradesh, Karnataka, Maharashtra and Telangana – where it also has an offline presence with shops in Hyderabad, Bengaluru, Mumbai and Navi Mumbai
Ikeas foot in India
But despite its international attraction, the interesting DIY model and the changing preferences of the urban Indians, has the furniture brand not decreased in India? Here is the whole story.
Ikeas Operations in India recorded a modest sales growth of 5% and reached 1,852 billion GBP in the 2023-24 fiscal year. This was his slowest expansion since it opened his first business in the country. The expenses for large format shops in Hyderabad, Bengaluru and Mumbai as well as for sales centers have led to losses of 5,550 billion GBP.
However, the brand seems to be plowing. It is planned to open in Gurugram and Noida in full-size shops in Gurugram and Noida in the next few years and at the same time set up shops in smaller cities. It has a 1.8 Lakh SQ. FT customer distribution center set up in Gurugram. Plans are in progress to start on the largest market in the country. North India is considered the largest market for home furniture and it is an opportunity to use the brand. In all of this, Ikea has remained true to his global approach and adapts to the local needs.
Stay true to the global approach
Brand expert Dr. Smitha Ranganathan states that the expansion of Ikea is a well thought-out strategy: “While Indian brands like Pepperfry and Urban Ladder were scaled by fast asset light models, digital-first models, Ikea remained loyal to the global approach: structure of large format stores, has its supply chain and had a consistent brand experience.
While the expansion was slow, there are many things for Ikea in India. It took over the omnichannel retail and integrated physical business in e-commerce. Ikea is not only known for its product range, but also for design, sustainability and affordability as well as for the complete solutions it offers. “Cities like Bengaluru, Hyderabad and Mumbai have reacted well. These metros accommodate digitally versed, spatially conscious consumers who are exposed to global aesthetics, and make fertile soil for Ikeas model. Today, Indian consumers do not only curate -you curate homes,” does not only add furniture to -Ranganathan.
Ikeas adaptability and the DIY culture
Ikea is also clever to adapt to the local markets. India is a diverse country and every state has its unique preferences. It has adapted the range to the unique Indian needs locally and created unique offers, whereby the cost -conscious Indian consumer is taken into account. The DIY furniture concept takes time to catch in India and Ikea has found paths. You have created a strong range of services for delivery and assembly services after you have joined together with meeting partners such as WIFY and URBAN Company.
Experts believe that consumers are gradually opening up to the DIY concept. “India was traditionally not a do-it-yourself culture. Socio-culturally we have bowed to a way of thinking of 'do-it-for-me', whether it is furniture or installed devices, have dependent on the abundant availability of service providers that develop on the abundant availability of service providers. Personalization and the flexibility of the modular life,” says Dr. Ranganathan.
The omnichannel approach also pays off. 30% of the sales of Ikea in India currently come from online channels, with the remaining 70% offline shops. It is planned to introduce a store app to take care of various retail formats. The brand aims to offer a seamless customer experience across all channels.
Ikeas next chapter
The upcoming chapter is of crucial importance for Ikea. The next physical business will appear in Gurgaon and Noida, two critical markets of northern India with different identities and lifestyles. Home buyers in Noida, usually upwards, are increasingly attracted to international design concepts. Her focus is on practical modernity. Think of flexible rooms, supportive office agreements and ergonomic designs that reflect your growing wishes and awareness of value. However, Gurgaon addresses a more demanding and brand -related population. His worldwide experienced workers see their houses as extensions of themselves and are looking for Select, trend set and experience settings that go beyond basic use. How Ikea manages this market could only be the game changer.