As per the reports, IKEA will lower their prices just for the store in India that is done everywhere they even open their first store. On Thursday, they will open their first store in Hyderabad that will overcome their high taxes on imported goods as it is wooing cost-conscious for the choppers that are unaccustomed to the DIY furniture.
The idea of expansion to India was entertained by IKEA for over a decade now. The Swedish retailer is finally marking the date of entry with the total of 400,000 square foot store in Hyderabad. It is said that they will be selling stuffed toys and cutlery for less than 200 rupees and the total items are around 1,000.
IKEA is now pushing in the market of South America and Asia. As the growth is now declining in Europe and many other traditional markets. The idea was to open the show at a location where the middle class is now growing and India was the top option. But it is better to be mindful of the rising prices that hit in Australia and China market.
The firm previously made a statement saying that the proportion of the locally sourced material would be the best help they can have in the import duties that would overcome the challenges of the low prices.
IKEA was dictated by Regulations that they must source a total of 30 per cent of the material locally in the five years of time since the operation is started. As per the reports, they have already sourced a total of 50 of its global supplies from India.
Jesper Brodin, the Group Chief Executive made a statement on Wednesday saying that Indian will be the biggest IKEA’s sourcing market in the near future. At present, the top suppliers are from Italy, Poland and China.
As per Brodin, his aim is to make sure that the people of India can easily afford and access the items. IKEA has already launched a website in India that shows their top products at low prices in the United State. Sowmya Adiraju, the analyst at the researcher Euromonitor International came forward and said that the main target audience of this whole project is the middle class that seems to get wealthier with the big-ticket items.
She said, "It would be interesting to see how IKEA does justice to its vision of 'furniture for all',"