Ikea’s India play: Why online comes before the big store

When Ikea announced its long-awaited entry into North India, the anticipation was palpable. Starting 1st March, customers from Delhi-NCR and nine satellite cities including Agra, Prayagraj, Amritsar, Chandigarh, Jaipur, Kanpur, Lucknow, Ludhiana, and Varanasi can access over 7,000 Ikea products via its app, website, and shop-by-phone assistance.

But the real buzz was visible on social media platforms. When Ikea announced its Delhi foray, other brands engaged in a friendly banter, not just welcoming the furniture retailer to the city, but also hinting at possible collabs. Consumers too got into the fray, sharing their own creative take on Ikea India’s step into Delhi.

For years, social media has been abuzz with one question—‘When is Ikea coming to Delhi?’ To celebrate this anticipation, Ikea turned real consumer and influencer comments into billboard features—building excitement ahead of its arrival. A standout element of its campaign is the Metro wrap, creatively designed to resemble the company’s signature brown furniture boxes, with the message ‘Ikea is now delivering in every corner of the city!’

“Ever since our first store opening in Hyderabad, Ikea continues to receive endless love and anticipation from the north of India through hundreds of orders coming in from these cities through our B2B channels, consistent online visitation, app downloads, as well as a steady stream of social media enquiries. This has been a missing piece in our India story. Now, it's our turn to reciprocate and we’ve been eagerly waiting to bring Ikea to North India. As we continue to strengthen our omni-channel growth in the country, this launch in Delhi NCR and other markets will be a strong foundation for our future growth in the region,” said Susanne Pulverer, CEO and chief sustainability officer of Ikea India.

With online deliveries now rolling out across Delhi-NCR and nine satellite cities, the 82-year-old Swedish furniture giant is taking a strategic detour from its traditional large-format store approach. Instead, it is focusing on an e-commerce-first strategy, allowing it to tap into the vast and digitally savvy consumer base in India’s capital region.

The move is a calculated one, designed to gauge market preferences and shopping behaviours before opening physical stores. India is one of the few markets where Ikea has opted for an e-commerce launch ahead of brick-and-mortar stores.

“This approach allows us to engage with a broad customer base from the very beginning, giving us valuable insights into consumer preferences and buying behaviours,” Adosh Sharma, country commercial manager of Ikea India told Campaign. The company’s previous experiences in Hyderabad, Mumbai, and Bengaluru have helped shape this strategy, ensuring a more tailored and effective rollout in Delhi-NCR.

“With our deep understanding of unique life at home needs in India—whether it’s multi-generational living, low-cost living, raising children, or optimizing small spaces—we aim to bring meaningful solutions to the north that will allow us to make these solutions and our wide range of products accessible to many even as we move closer to launching our stores in the region soon. Over 30% of our sales currently come from online, making e-commerce a powerful and fast-growing channel for IKEA in India,” says Pulverer.

Beyond e-commerce: Omnichannel ambitions

Despite prioritising online sales, Ikea has not abandoned its plans for physical retail in North India. The company is working on two large-format stores in Noida and Gurgaon while also exploring smaller city-centre formats to cater to urban consumers. “Our vision for the future includes an omnichannel approach, where smaller format stores complement our existing big-format stores, ensuring affordability and efficiency while meeting the diverse needs of customers across India,” Sharma explained.

Ikea recently inaugurated a 1.8 lakh square feet central distribution centre in Gurgaon, a move that will not only streamline e-commerce deliveries but also support its future physical outlets. With this, the brand is ensuring a seamless integration between online and offline retail—critical in a market where consumer preferences shift rapidly.

The Swedish retailer is eying India as a key growth market, even as the global home furnishings industry faces a slowdown amidst softer consumer demand. A report by the Press Trust of India stated that Ikea India recorded a loss of INR 1,299.4 crore in FY24, an increase from the INR 1,133 crore loss reported the previous year. The rise in losses is primarily attributed to the company’s continued investments in expanding its omnichannel presence.

Adosh Sharma, country commercial manager of Ikea India.

Advertising and promotional spending for Ikea India reached INR 196.3 crore in FY24, reflecting a nearly 2% increase from the previous year. The growing investment in building brand recall is essential in a market that is dominated by smaller, unorganised entities.

Moreover, with established e-commerce giants like Amazon and Flipkart dominating the online furniture and home décor segment, Ikea faces stiff competition. Indian consumers are price-sensitive and expect fast deliveries—two areas where local players excel. However, Sharma believes that the company’s differentiation lies in its value-for-money proposition.

“Affordability is not always about the lowest price; it’s about value for money. We have around 1,000 articles priced below INR 200, and even our medium- to high-priced articles are competitively priced compared to competitors,” he asserts.

On the logistics front, Ikea is focused on optimising last-mile delivery through strategic warehouse placement and local partnerships. Currently, deliveries in most markets are completed within 2 to 7 days, with continued efforts to reduce this timeframe. Additionally, the company is increasing its local sourcing to reduce import costs and improve supply chain efficiencies, further reinforcing its affordability promise.

One of Ikea’s key challenges in an e-commerce-led model is replicating its famed in-store experience digitally. Visitors at its 4.8 lakh square feet Hyderabad outlet or its 5.3 lakh square feet and 4.6 lakh square feet stores in Navi Mumbai and Bengaluru, respectively can explore the products and imagine how it will fit into their homes or offices. Recreating a similar experience online can be a daunting task.  

The brand is leveraging technology to bridge this gap, most notably through its AI-powered tool, Ikea Kreativ. This platform, launched in 2022, allows customers to visualise furniture placements in their homes using AR and 3D visualisation. Users can upload images of their rooms and experiment with different layouts before making a purchase, enhancing their confidence in online shopping.

“We’ve integrated Ikea Kreativ into our India app, allowing customers to personalise their shopping experience,” Sharma shares. The tool also enables direct purchasing and design-saving options for future reference, making online home furnishing more interactive and engaging.

To build further trust, Ikea has introduced a 365-day exchange and return policy, providing customers with flexibility and assurance—something that remains a key concern in the Indian e-commerce landscape.

Shifting from transactions to relationships

With e-commerce moving beyond just transactions, Ikea is investing in long-term customer engagement. “In terms of campaigns, we have exciting plans that will reinforce our brand perception while driving sales. By crafting content that speaks directly to the realities of how people live, we aim to create meaningful connections,” Sharma notes.

This includes hyperlocal marketing strategies, influencer collaborations, and community-driven initiatives, ensuring that Ikea resonates deeply with Indian lifestyles. The company’s ‘Ikea Family’ community already boasts 2.7 million members, and with nearly 1 lakh new customers signing up in Delhi-NCR alone, Ikea is well-positioned to cultivate brand loyalty.

Sustainability remains a core focus for Ikea as it expands in India. The company has committed to using 100% electric vehicles for deliveries in North India, aligning with its global climate goals for 2030. Additionally, its increased local sourcing not only reduces costs but also minimises the environmental impact of shipping.

With an omnichannel expansion on the horizon, Ikea’s entry into North India marks a new chapter in its India journey. The challenge now lies in how well it can balance affordability, delivery speed, and its signature shopping experience in an increasingly competitive digital marketplace. As it gears up for its first physical stores in the region, the success of its e-commerce-first approach will serve as a crucial litmus test for its long-term strategy in India.