From Homes To Businesses: Ikea India Plans Dual Approach To Spur Growth
The home furnishing giant sees huge opportunity in the Delhi-NCR region for expansion.
Ikea, the Swedish home furnishing giant known for its affordable furniture and decor offerings, is expanding into the business-to-business segment as it seeks to supply to cafes, restaurants, hotels, and universities.
"We see a lot of potential in the B2B segment," Sumit Parthi, manager of commercial business at Ikea India, told NDTV Profit in an interview. "Whether it's a small cafe or a large university campus, Ikea has something to offer to every business looking to furnish their spaces with style and functionality."
With the launch of its first store in Hyderabad in 2018, Ikea quickly realised the potential of the market and identified opportunities beyond just selling furniture to individual consumers, Parthi said. Today, all the five Ikea stores in Hyderabad, Bengaluru and Mumbai have dedicated B2B service points.
The next big expansion for Ikea India is the Delhi-National Capital Region market and Parthi sees huge opportunity in the region from a B2B perspective. The B2B operations will kick in by mid-2025 in parallel with its shopping centre.
Ikea wants to solidify its reputation as a go-to destination for all furniture needs, according to Parthi.
Today, 15-20% of Ikea's overall sales comes from the B2B segment, but Parthi believes the share of B2B has potential to grow further.
The furniture retailer is also looking to increase its local sourcing.
Watch the full conversation here:
