In an interview with CNBC-TV18, IKEA India CEO Patrick Anthony explained that the divide in bedroom usage between Indian and European households is crucial to the company’s local product strategy.
A multifunctional space
In Sweden, Anthony noted, bedrooms are primarily for sleeping and storage. However, in India, he referred to it as a “24-hour room,” utilized for activities far exceeding rest. Many households, especially where a woman joins her husband’s family after marriage, see the bedroom transform into her principal personal area. According to Anthony, this area is employed for grooming, eating, reading, and studying, not just for sleeping.
This understanding has driven IKEA to diversify its bedroom storage and furniture offerings for India distinctively compared to other markets, while also addressing the persistent demand in the living room, which the company identifies as the more visible, guest-oriented part of the home. The kitchen is also witnessing a gradual but increasing interest, as per Anthony.
IKEA currently provides about 7,000 of its 15,000 global products in India, a selection influenced by local insights into how homes are lived in, rather than merely exporting its European catalogue.
Also read: Explained: Why IKEA is doubling its India workforce and sourcing by 2030Growth ambitions and revenue goals
This product reevaluation aligns with IKEA’s efforts to bolster its physical and online presence in India. After launching in 2018, following extensive regulatory preparation, the company now runs seven stores. Anthony shared plans to open approximately 25 additional locations by 2030, including smaller-format stores of about 15,000 square feet and larger locations up to 200,000 square feet.
Large mixed-use projects, merging an IKEA store with retail, hotels, and office space, are in progress outside Delhi, in Noida and Gurugram, set to launch in 2027 and 2028, respectively. Until these larger facilities are ready, Delhi is being served with smaller-format outlets, part of a broader initiative towards improving accessibility in IKEA’s global operations, shaped significantly by insights from India.
Currently, online sales contribute to around 30% of IKEA’s business in India, with the company active in about 30 markets across the country, including cities like Bengaluru, Hyderabad, Mumbai, Ahmedabad, Delhi, Chandigarh, Jaipur, and Lucknow.
Concerning financial outcomes, IKEA India achieved ₹1,800 crore in revenue in FY25, a leap from approximately ₹200 crore in prior years. The company aims for roughly ₹8,000 crore in revenue over the next five years, quadrupling its growth due to new store openings and an expanded e-commerce presence.
In tandem with its store and digital growth, IKEA is also increasing its local sourcing. Currently, around 30% of its India range is sourced domestically, and the company exports products worth about €400 million annually from Indian suppliers, targeting to double this figure by 2030.
A newly established product development center, operated in collaboration with its local partner, is focused on creating products tailored to the Indian market that could later be marketed globally.
Also read: IKEA deepens India commitment with product hub, targets 50% local sourcing
The hiring process is also set to expand alongside the store network. Currently employing about 2,500 people in India, IKEA aims to increase that count to double in the next four to five years, including creating around 350 new leadership positions.
