Hej, Delhi! The Swedish greeting echoed through the Embassy of Sweden as IKEA announced its much-anticipated entry into the capital. The phrase adorned standees, posters, and team t-shirts, symbolizing the home furnishing giant’s expansion into Delhi and nine other northern cities.

Starting March 1, 2025, IKEA will offer over 7,000 products through its app, website, and phone assistance, with next-day delivery available in Delhi-NCR. The company’s expansion strategy extends to online services in cities such as Agra, Prayagraj (Allahabad), Amritsar, Chandigarh, Jaipur, Kanpur, Lucknow, Ludhiana, and Varanasi.

Strengthening Logistics and Retail Presence

To support this expansion, IKEA has established a 180,000 sq. ft. central distribution center in Gurgaon in partnership with logistics firm Rhenus. The company is developing a holistic strategy that integrates online operations with large-format and small retail stores.

Parent company Ingka Group has ambitious plans for two shopping malls, each housing an IKEA store under the Lykli brand—one in Gurgaon and another in Noida.

Lykli Gurgaon: Spanning 1.7 million sq. ft., it will feature a 200,000-250,000 sq. ft. IKEA store as its anchor outlet, set to open by 2026.

Lykli Noida: Expected to be operational by 2028-29, this development will include a million sq. ft. housing area and an IKEA store of 200,000-250,000 sq. ft., with an investment of approximately Rs 5,500 crore.

IKEA already operates stores in Hyderabad, Mumbai, and Bengaluru, bringing its total investment in India to approximately Rs 10,500 crore.

Understanding Regional Consumer Preferences

According to Jayendra Gupta, IKEA India’s Country Integrated Media Manager, the company maintains a consistent global product range while adapting to regional consumer preferences. For instance:

Mumbai: Focus on multifunctional furniture due to compact living spaces.

Delhi-NCR: Greater emphasis on outdoor and decorative products, considering the prevalence of balconies and larger homes.

He highlights that while IKEA’s core range and messaging remain the same, its product displays and storytelling will reflect local consumer trends.

Marketing and Engagement Strategy

IKEA is leveraging an omnichannel marketing approach to generate buzz in the northern market. A major out-of-home (OOH) campaign in the Delhi Metro encouraged people to tag IKEA India on Instagram, amplifying excitement about its launch. The campaign blends digital, physical, and social engagement, supported by influencer collaborations.

The company is allocating 70% of its marketing budget to digital, OOH, and experiential pop-ups. Three pop-up events will allow customers to explore IKEA products firsthand:

Nexus Select Citywalk, Saket (Feb 27 – Mar 9, 2025)

DLF Mall, Noida (Mar 7 – Mar 16, 2025)

DLF CyberHub, Gurugram (Mar 24 – Apr 5, 2025)

Navigating Market Competition

India’s furniture market, valued at $16 billion (Rs 1.3 lakh crore), is projected to double by 2027. The organized sector, worth Rs 50,000 crore in 2019, is expected to reach Rs 1,95,200 crore by 2035. North India’s market remains dominated by unorganized retailers, where personal relationships influence purchasing behavior.

IKEA embraces this challenge, focusing on a holistic approach that prioritizes affordability, quality, and customer experience over pure discount strategies.

Addressing Counterfeiting and Future Retail Trends

Despite IKEA’s official stance against selling through third-party marketplaces, counterfeit products frequently appear online. Gupta emphasizes that IKEA is reinforcing its digital presence through IKEA.in, the IKEA app, and direct phone shopping. A key objective of its marketing efforts is to educate customers about authentic purchase channels.

Author: sonali kamble