Ikea India plans to quadruple its revenue to around Rs80bn ($831.8m) by 2030, driven by faster store rollout and a growing e-commerce push, CEO Patrik Antoni told businessline.
The Swedish furniture and home furnishings retailer, which has committed to invest Rs105bn into the Indian market in 2013, said earlier this year that capital investment in the country would more than double by 2030.
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The company reported double-digit growth in both revenue and footfall across its stores.
To support the sales target, Ikea intends to add at least 25 outlets in India by 2030 and further build out its online operations.
Staff numbers are also set to double, rising from 2,500 to 5,000 co-workers.
Alongside its large-format outlets, the retailer is rolling out smaller store formats aimed at making its offering more accessible to Indian shoppers.
Antoni said this represents a change in strategy over the last two years, with the company moving away from large-format-only expansion towards locations nearer to where consumers live.
He was quoted as saying: “We are witnessing a solid double-digit growth trajectory with growth in sales and store visitations. India is a key growth market for us from the long-term perspective. We are quite bullish on the market with its large base of consumers, a growing economy and rapid urbanisation.”
Online sales currently represent 30% of Ikea India’s total revenue, a proportion the company expects to keep rising.
Antoni noted that e-commerce performs better in areas where Ikea already has physical stores, as in-person shopping experiences help build brand recognition that then feeds into online purchases.
The retailer is also expanding its sourcing and export activity out of India.
Antoni added that closer alignment between Indian and international product standards has been a significant factor in supporting higher export volumes from the country.
In May, Inter IKEA Group, which owns and manages the Ikea franchise system, eliminated 850 positions worldwide as it moves to streamline operations, cut costs and reduce prices for customers.
