‘We want to grow our sales fourfold in India’

What is the current contribution of online sales to your revenue?

Bhavana: Last year, our revenue was about ₹1,800 crore, and this year it is expected to be around ₹2,000 crore. Around 30% of our sales currently come from online channels. Interestingly, sales through our website and app are almost evenly split. As we expand further, we expect the app to play a bigger role.

How much of IKEA’s India business is circular or sustainable?

Patrik: In India, we operate Circular Hubs where products are returned under our 365-day return policy or due to damage. In some other markets, we have buy-back programmes, which we have not yet introduced in India. All our products are designed to be disassembled—recyclability begins at the design stage. Circularity is a core principle for IKEA globally.

Are you looking to expand further into office furnishings?

Patrik: We already cater to offices, cafés and hotels, which require higher product quality. Accessories also form a significant part of our offering. About 20% of our revenue comes from the B2B segment, which includes office furniture and hospitality-related furnishings.

What is your view on trade tensions, including those between the US and Europe?

Patrik: Trade tariffs and barriers are bad for business. Over time, they become bad for consumers, who ultimately bear the cost. We export from India and import from Europe and China, so we favour low tariffs across markets.

Has there been any impact on IKEA’s exports to the US from India?

Patrik: The US is one of IKEA’s biggest markets, but we operate in 55 countries. Our share in the US market is around 7%. There has been no major drop in exports from India, as volumes have been absorbed by other markets. About 3% of India-sourced products go to the US. Around 30% of IKEA India’s sales volume is sourced locally, while products worth about €340 million are exported from India to other global markets.

What kind of partnerships do you have with Indian suppliers and artisans?

Patrik: We work with four to five mid- to large-sized Indian suppliers. We provide designs and support them in sourcing raw materials, sometimes helping with bulk procurement. Suppliers must follow strict guidelines on materials, glues and paints. We also work with artisans through social entrepreneurship initiatives.

What is your strategy to further expand e-commerce across India?

Bhavana: Currently, 30% of our sales come from online channels, and our aim is to increase this to 40%. Growth will come from both existing and new markets. For instance, Delhi is a relatively new market for us, offering higher growth potential compared to Hyderabad, where we have been present for six years. We are currently present in 80 cities. Expansion is driven by demand, while balancing profitability and sustainability. Our goal is to ensure last-mile connectivity using 250 electric vehicles. We delayed entering Delhi until we had warehousing in place, as shipping furniture from Mumbai would have increased costs for consumers.