Global furniture giant IKEA is set to further strengthen its foothold in India by adopting a new strategy aimed at increasing accessibility and customer convenience. The Swedish multinational is planning to open smaller, city-centric stores across the country while also expanding its online presence to cater to a broader audience.
New Store Format for Urban Centers
In a departure from its traditional large-format stores, IKEA will now focus on opening smaller outlets in densely populated urban areas. These compact stores are designed to bring IKEA’s affordable, modern furniture and home décor solutions closer to consumers who may not have easy access to its larger outlets.
IKEA’s typical megastores, such as those in Hyderabad and Navi Mumbai, cover expansive areas and are located on the outskirts of major cities. While these stores offer an immersive shopping experience with a wide range of products, they can be challenging to visit for customers living in the city center. The smaller stores, however, will be strategically located in more central areas, making it easier for urban dwellers to shop for IKEA products.
Expansion of Online Presence
In addition to physical stores, IKEA is placing a strong emphasis on expanding its online presence in India. The company has recognized the growing demand for e-commerce, especially after the COVID-19 pandemic, which led to a surge in online shopping across the country. IKEA’s online platform will offer an extensive catalog of its products, allowing customers to browse and purchase items from the comfort of their homes.
To support its online strategy, IKEA is enhancing its digital infrastructure, including faster delivery options and improved customer service. The company is also likely to integrate innovative technologies such as virtual room planning and augmented reality to enhance the online shopping experience.
Targeting India’s Growing Market
India, with its rapidly urbanizing population and growing middle class, represents a significant market for IKEA. The company has been steadily increasing its investments in the country, focusing on making its products more accessible to the Indian consumer. By opening smaller stores and strengthening its online platform, IKEA is positioning itself to cater to the evolving needs and shopping habits of Indian customers.
The smaller store format will enable IKEA to reach a wider demographic, especially those living in bustling urban centers where real estate is at a premium. Additionally, the company’s online expansion ensures that even customers in smaller cities and towns, where physical stores might not be feasible, can still access IKEA’s vast range of products.
IKEA’s Commitment to Sustainability
As part of its broader global mission, IKEA remains committed to sustainability. The company has been rolling out eco-friendly products and solutions, and its operations in India will align with this vision. From promoting sustainable home solutions to incorporating renewable energy in its stores and operations, IKEA aims to be an environmentally conscious brand in India as well.
Looking Ahead
With its dual focus on smaller physical stores and a robust online presence, IKEA is set to tap into India’s booming retail market. By adapting to local market conditions and consumer preferences, the furniture giant is well-positioned to continue its growth in the country while maintaining its signature blend of affordability, style, and sustainability.
