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IKEA is using India as a key ground for innovation in products, sustainability, and operations, with its Bengaluru development centre playing an important role. The Bengaluru hub works like a product development centre, collaborating closely with local suppliers on textiles, carpets, metals, and plastics to influence both local and global IKEA offerings. India was the first market where IKEA piloted organic cotton after transitioning to sustainable cotton sourcing, and Indian organic cotton now features in its baby products and some bed linens. Around 40 of IKEA’s roughly 1,500 global suppliers are in India, mainly for textiles, and the company plans to raise local sourcing from about 30 percent today to 50 percent by 2030.
Proximity to suppliers speeds up product development and helps tailor products to local preferences while supporting sustainability goals. IKEA’s food business, which contributes about 5 percent to total revenue, has also adapted menus to suit Indian tastes with items like vada pav, bisibele bhath, and biryani. These India-first initiatives have influenced other markets. IKEA is also testing agile store formats with limited inventory in places such as the UK and Texas, and may pilot similar formats in India as part of a global exchange of ideas.
