IKEA Doubles Down on India as Global Slowdown Threatens Other Markets
The Swedish furniture giant IKEA views India as a priority market and potential export hub, aiming for profitability by August 2028 while contending with store closures in China and sluggish sales elsewhere.
Key Points
- IKEA sees India as priority market and potential export hub post India-EU FTA
- India sales grew 6% in FY2025, reaching 18.5 billion rupees
- Company targets profitability in India by August 2028
- India currently contributes $196.7 million to IKEA's global revenue
- IKEA facing store closures in China and sluggish sales in other markets
Full Details
The Swedish giant IKEA views India not only as a potential major retail market but also as a possible export hub, supported by the India-EU free trade agreement finalized in January. Patrik Antoni, CEO of IKEA India, has been appearing in playful Instagram reels teasing store launches in India, calling it a priority market. IKEA's India sales rose by around 6% in the financial year ended August 2025, with furniture being the leading category. Although India's current contribution of 18.5 billion rupees ($196.7 million) to IKEA's global revenue remains modest, the company expects retail operations in the country to turn profitable by its financial year ending August 2028 and is doubling down on its expansion plan. This comes as IKEA contends with sluggish sales in key markets and store closures in China.
Why It Matters
IKEA's bet on India reflects the country's growing importance as a consumption-driven market even as global retail faces headwinds. The India-EU free trade agreement has opened new strategic possibilities for India as an export manufacturing hub, potentially transforming the country's role in global retail supply chains.
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