Home furnishing brand Ikea is planning to bring down prices in India for its products, Juvencio Maeztu, deputy CEO and CFO, Ingka Group, said on Tuesday. The furniture retailer is cutting product prices across the world, including India.
Speaking to Moneycontrol on the sidelines of the World Economic Forum, Maeztu said, “We are now going to cut prices and up to 20% price reduction in more than 250 articles (products). It will be implemented in the coming weeks. We have a long term vision to create a better life for the people. So, we have a long term approach at everything we do and the time is ready with high inflation with high interest rate”.
He said that the company has delivered in India what it had promised. “We planned to invest Rs 10,500 crore which we have done already. We have achieved 50% gender equality. So, we had promised to source 30% locally which we have achieved. So, up to now, the step number one has been achieved which is to prove that India loves Ikea and Ikea loves India. And we are now moving to the next phase where we really want to expand,” he said.
Maeztu said that the company is opening additional Ikea stores and enhancing its online presence in India.
“We will develop more sourcing capabilities not only to produce in India but also to export somewhere else. So, for the next phase we need to partner with the states. We welcome the government really increasing quality standards so it’s a good opportunity to produce,” he added.