BENGALURU, June 22 (Reuters) – IKEA India plans to source more products locally to tackle rising inflation, as the Swedish furniture conglomerate sells more to the country’s growing middle class with the launch of its latest store on Wednesday. wants.
Four years after IKEA entered the Indian market, the company’s fourth and largest store in India opened in the country’s tech hub Bengaluru.
Spread over 460,000 square feet, the store will feature a wide selection of the brand’s home products and furnishings, including the popular Billy bookcase and Fargrick mug.
The furniture company is placing a large bet on home goods in Bengaluru, where rental space is less expensive and larger than in Mumbai, where IKEA has two stores.
As prices rise, the average Indian is becoming more conscious of non-essential spending.
Retail inflation in India fell slightly in the previous month after reaching an eight-year high in April. more info
“We need to focus on local sourcing, which will allow us to lower prices even further.” We are attempting to keep our own costs as low as possible, so we must deal with affordability. IKEA India’s chief executive officer and chief sustainability officer, Susan Pulverer, told Reuters on Tuesday.
IKEA sources approximately 25% to 27% of its products locally, with the goal of reducing it by at least half in the long run.
The company stated that it has long sourced textiles and carpets locally in India and intends to expand to wood-based flatline furniture.
Nonetheless, the high import duty has always made it difficult for global corporations to operate in India, with a 25% import tax on furniture.
“Import duty has an impact on prices and competition, and it is not a completely open market,” Pulverer added.