IKEA planning omnichannel push with big stores, small outlets, online reach: Patrik Antoni

IKEA India is preparing for a major expansion in the country, combining large-format stores, smaller city outlets, and a growing online presence, according to CEO Patrik Antoni. 

Speaking at the India Economic Conclave, Antoni said the company is focused on meeting Indian consumers wherever they choose to shop while deepening localisation and increasing local sourcing.

Antoni, who helped launch IKEA’s first store in Hyderabad seven years ago, said the city was chosen due to demographics and supportive state authorities. “Telangana authorities were very progressive and supportive, and it was the place where it went quickest,” he said. Mumbai and Bengaluru followed within three years, while Delhi NCR took longer due to regulatory timelines, though IKEA is now close to launching there.

Looking ahead, IKEA India plans to expand from six physical touchpoints to more than 30 within five years. This will include big stores outside city centers, smaller formats inside cities, and a fully integrated online platform. “We want to meet the customer wherever he or she wants to be,” Antoni said. Expansion will cover Delhi NCR, possibly up to Chandigarh, as well as Jaipur, Chennai, and Pune, while deepening presence in Mumbai, Bengaluru, and Delhi.

Antoni said India’s consumer base is diverse, including young people starting out, young families with evolving home needs, and affluent design-conscious buyers. “We talk to everybody, but the core is young people starting out and people with children. It’s a mix of aspiration and affordability,” he said. IKEA India helps first-time home furnishers with ideas, room sets, and tiered price points, enabling them to build homes suited to both budget and lifestyle.

‘Localisation is key’ 

While IKEA’s product range is largely uniform globally, room setups are adapted to Indian lifestyles. “Bedrooms in India are different. They often serve multiple functions like study rooms, makeup areas, unlike Sweden, where they are primarily sleeping spaces,” Antoni said. The company conducts home visits across income groups to study daily life, storage habits, and spatial usage, translating these insights into locally relevant store layouts.

On sourcing, Antoni highlighted IKEA’s long-standing role in India as a production hub for global markets. About 30 percent of IKEA India’s sales volume is locally made, with plans to raise it to 50 percent in five years. “We are already making an India for the world,” he said, aligning with the government’s ‘Make in India’ vision. Challenges remain in sustainably sourced wood, recycled materials, and modern machinery. Antoni emphasized harmonized standards and collaboration between industry and government to help India become a global home furnishing hub.

Food is another integral part of the IKEA experience. Introduced in Sweden to keep families engaged during store visits, IKEA’s restaurants in India combine Swedish classics with local dishes. While food contributes 7-8 percent of turnover, it is primarily a brand-building tool, enhancing customer experience rather than profit.

IKEA India is also driving online growth. About 27 percent of its business is currently online, with categories such as mattresses seeing significant uptake. The omnichannel strategy allows consumers to shop online or in-store, though Antoni emphasized the value of the physical store for brand connection. “The store experience is unique. You can see tips, ideas, and meet our co-workers. That’s where you connect with the brand,” he said.

Reflecting on India as a market, Antoni praised the optimism and resilience of Indian consumers. “The overall theme of India is optimism, and the dream that people know tomorrow is going to be better. That spirit of happiness is what I really love,” he said. 

On the lighter side, he noted queuing behavior in stores could improve, though as IKEA expands, better management and more stores will address this