- The COVID-19 pandemic has slowed down Swedish retail furniture Ikea expansion in the Indian market.
- Ikea made over Rs 400 crore ($54 million) revenue in India in the last FY-2019.
- The company management is planning to open its retail stores in Mumbai, Bengaluru, and Delhi/NCR.
PTI: The impact of the COVID-19 pandemic has slowed down the expansion of Swedish furniture company Ikea in the Indian market. The company is now looking to increase its expansion by adopting the omnichannel approach in the Indian market.
With the change of consumer behavior due to the COVID-19 pandemic, the Online marketplace will play an important role for Ikea in India, which plans to focus on the expansion with an omnichannel approach.
According to the reports, the company management is planning to open its retail stores in metropolitan cities like Mumbai, Bengaluru, Delhi/NCR.
“India remains a very important market for us and we have our plans to enter in many cities with an omnichannel approach. Cities like Bengaluru, Mumbai, Delhi are among the prioritized cities for Ingka Group for faster expansion in the Indian market,” told, Peter Betzel, Managing Director, Ikea India to PTI.
“We will be establishing a strong omnichannel approach in Hyderabad, Mumbai, Delhi/NCR, and Bengaluru and exploring other opportunities for expansion in the Indian market. We will be opening big stores, smaller city center stores, and an online platform as a selling channel,” he added.
Our ambition is to expand in more cities in India with an omnichannel approach. Based on our expansion plans, we will also develop logistical capabilities to serve customers more efficiently, said, Peter Betzel, who also served as a Chief Sustainability Officer for IKEA India.
Furthermore, Ikea parent INGKA Holdings is targeting to reach 100+ million customers by the year 2022 through an omnichannel approach.
The company management planning to open 25 stores in India by 2025. INGKA planning to open its second store in Mumbai in the next six months.
Ikea India made over Rs 400 crores ($54 million) revenue in India in the last FY-2019. The company is now looking to increase its revenue by expanding into more cities.