NEW DELHI: Swedish furniture chain Ikea is revamping its India strategy by slashing prices by around one-third and sourcing more from the local market.
Ikea, which is in talks with the government along with other players, to create furniture hubs in India, is looking to source native varieties of wood too, including, sheesham, mango and sustainable grass, such as bamboo.
Until now, Ikea has been using wood such as birch, pine and ash sourced mainly from European markets. The furniture made with these indigenous raw materials will find its way to global Ikea stores, Kavitha Rao, country commercial manager of Ikea India, told TOI.
Ikea is expanding local sourcing beyond textiles, which has been India’s strength. “We have had to accelerate our work to new categories and have had good success with metal, plastic and comfort categories, such as, mattresses and sofas,” Rao added.
The company, which started its India operations two years ago, has ramped up its local sourcing from single digits to 20-25% currently. As a single-brand retailer, it has to meet 30% local sourcing within five years of starting operations in India.
Ikea, which is in talks with the government along with other players, to create furniture hubs in India, is looking to source native varieties of wood too, including, sheesham, mango and sustainable grass, such as bamboo.
Until now, Ikea has been using wood such as birch, pine and ash sourced mainly from European markets. The furniture made with these indigenous raw materials will find its way to global Ikea stores, Kavitha Rao, country commercial manager of Ikea India, told TOI.
Ikea is expanding local sourcing beyond textiles, which has been India’s strength. “We have had to accelerate our work to new categories and have had good success with metal, plastic and comfort categories, such as, mattresses and sofas,” Rao added.
The company, which started its India operations two years ago, has ramped up its local sourcing from single digits to 20-25% currently. As a single-brand retailer, it has to meet 30% local sourcing within five years of starting operations in India.
