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How IKEA Is Rebuilding Retail In India

How IKEA Is Rebuilding Retail In India

July 20, 2025 • Estimated Reading Time: 8 minutes

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Good morning! Ever spent an entire Sunday wandering through IKEA, picking up candles you didn’t need and dreaming about reorganizing your wardrobe? Turns out, you’re not alone — and IKEA’s betting big on that very habit.

In this Weekend Edition of The Core Report, Govindraj Ethiraj chats with Adosh Sharma, Country Commercial Manager at IKEA India, about what makes Indian shoppers tick, why the Swedish giant is going small with store formats, and how meatballs and EVs are part of the plan. From Bangalore to Navi Mumbai, from play zones to planning studios — tune in for a behind-the-scenes look at IKEA’s big desi pivot.

THE CORE REPORT: WEEKEND EDITION

IKEA India: Still Building The Foundation

IKEA has 5 stores across India and plans to expand to 6 key markets over the next five years.
Their model combines large destination stores (400,000+ sq. ft.) with smaller, city-accessible formats — from 20,000 sq. ft. planning studios to 80,000 sq. ft. urban stores.
The goal: be within 30 minutes of every customer, online or offline.

India-Specific Strategy, Not Just Global Copy-Paste

IKEA localises product strategy through its Life at Home report, a detailed annual study of Indian home habits.
Trends shaping their offer: multi-generational homes, space optimisation, and sleep as a health issue.
New campaigns are tailored to local needs — like a deep focus on affordable sleep solutions this year.

IKEA’s Three-Layer Food Play

Food contributes nearly 10% of overall sales, spread across:
- The iconic restaurant
- A Swedish food market
- The exit café (for on-the-go snacks)
IKEA plans to deepen food offerings in India — a market where food = footfall.

The Consumer Slowdown Is Real — And Structural

For companies like HUL and Asian Paints, revenue growth is flat or negative.
Disruption is hitting every layer: from D2C brands to private labels to evolving buyer habits.
“Market structure has changed. The old rules no longer apply.”

Service Is Non-Negotiable In India

Over 80% of furniture sold is delivered to homes.
Assembly services are growing, and priced competitively:
- ₹799 for up to 500kg delivery
- ₹9,999 all-inclusive kitchen installs
IKEA balances DIY philosophy with India’s high service expectations.

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THE SIGNAL DAILY

Where Is India's Premium Petcare Market Headed?

Pet Love Is Growing — And So Is Spending

India’s petcare market is in the middle of a boom. A Redseer report shows pet ownership is growing at 4–5% annually — with 32 million Indian households owning pets in 2024, up from 26 million in 2019.

It’s Not Just About Spending — It’s About Spending Well

Today’s pet parents are choosing premium everything:

₹10,000 hypoallergenic dog beds
Free-range, organic meals
Air-dried treats
Specialized skincare, supplements, and even pet tech

What’s Driving This Premiumisation?

In this episode, we speak to pet owners and industry professionals to understand:

Why more Indians see pets as family — not animals
How urban lifestyles and rising incomes are shaping buying habits
And what it means for the future of India’s $800 million+ petcare market

Trading Options Is A Losing Game. So Why Can’t We Stop?

9 Out Of 10 Retail Traders Lose Money

According to SEBI, a staggering 90% of small traders lose money in options trading.The reason? They’re up against institutional investors with deep pockets, faster systems, and advanced algorithms.

So Why Are People Still Hooked?

In this episode, we explore the psychology of risk and what makes options trading feel addictive — especially in online, mobile-first environments.

Addiction, Dopamine & Financial Fomo

We speak to everyday traders and a behavioural finance expert to break down:

How losses are rationalised
The thrill of small wins
And when trading becomes a toxic, compulsive cycle

THE MEDIA ROOM

What’s Holding Back Indian Cinema

Building India’s Boldest Studio Play

Jyoti Deshpande is reshaping the movie business from the inside out. As the force behind Jio Studios’ ambitious slate, she’s betting on quality over quantity — and full control over IP ownership and financing.

The Broken Moviegoing Habit

Theatres are open, but audiences haven’t fully come back. Jyoti explains why screen scarcity, especially outside metros, is a bigger threat than OTT — and what the industry must fix to revive cinema as a habit, not a one-off outing.

Regional Is The Real Growth Story

Forget just streaming — the future of Indian cinema lies in regional language content. Jio’s strategy includes deep local partnerships and a push to scale storytelling across diverse markets.

What’s Really Blocking A Global Breakout?

has the stories. What it lacks is production efficiency, screen infrastructure, and scale-ready systems. Plus: how AI might change the game in everything from post-production to script development.

HOW INDIA’S ECONOMY WORK

Taco Vs Tariffs: Can India Trust Donald Trump?

Trump Promised Trade Deals. What Happened?

Back in 2024, Donald Trump claimed he’d deliver 90 trade deals in 90 days. So far, just two have materialised — one with the UK, another with Vietnam — and neither is particularly detailed.

Meanwhile, India Is Still At The Table

Indian negotiators are currently in Washington, trying to break the deadlock. But trade with the US is rarely simple — especially when tariffs, pharma, digital rules, and agriculture are all in the mix.

The Sticking Points