“IKEA aims to increase local supplies to 50% in the coming years”

On the sidelines of the Bengaluru store launch, Susanne Pulverer, CEO and Chief Sustainability Director at IKEA India, said Business line that the Swedish company aims to increase its local resources from 27% to 50% in the coming years.

IKEA started its business in India in Hyderabad in 2018, followed by the launch of two stores in Mumbai and now a new store in Bengaluru. Recognizing Karnataka as an important business market, IKEA has announced its long-term business commitment to the state.

“We have invested 3,000 crores in Karnataka and have plans to open more stores in Bengaluru in the coming years. In India, we have announced that the total investment commitment is ₹ 10,500 kroner. That’s the budget we’re working on, and we’re still within that budget, “Pulver said.

In terms of business, it is said that nearly 100 million people in India have visited IKEA, including both online and offline customers. Pulver noted that IKEA sells 37% of its products through online channels and 63% through offline stores.

“Important market”

Compared to other countries, IKEA’s business in India is still small, but Pulver expects it to catch up. “We are at the beginning of a long-term journey of growth in India. Compared to countries like France and Germany, of course, we are very small. Nevertheless, India is an important market for us.

The company also plans to expand its team in India from the current 3,000 to more than 10,000 by 2030. Speaking of the IKEA business-to-business vertical, Pulver said: “IKEA’s B2B segment has already reached a good share of the business; in fact, it is higher than our other segments. With more stores in Bengaluru and Mumbai, the Swedish furniture brand plans to launch two major projects in Gurugram and Noida, which will come in partnership with IKEA’s subsidiary Ingka Group.

Posted on

June 21, 2022

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