India one of biggest growth markets: Ikea

India has become a key growth market for Swedish home furnishings giant Ikea as it continues to expand its footprint in the country. Despite a global downturn in the home furnishings sector, Ikea saw robust growth in India, with global revenues surpassing 45 billion euros in FY24, demonstrating resilience amid subdued 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."

(With TOI inputs)