Ikea India is proposing an economical solution by sourcing materials from the local market to cut down the budget, according to The Economic Times.
The company said it is talking to the government and other players in the market to form furniture hubs. By sourcing wood locally, including Sheesham and bamboo, Ikea expects to cut prices by a third.
The home-furnishing giant has been using wood imported from Europe.
“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,” Kavitha Rao, country commercial manager of India, told The Economic Times.
As part of its strategy to boost affordability in the India market, the brand has lowered product prices in certain categories, including chairs, toys, sofas, and bookshelves.
“Local sourcing remains a key driver of affordability and over a third of the products under new lower prices are made in India,” he said.
Entering India in 2018, Ikea India has increased its local sourcing from single digits to 20-25 percent. Local sourcing is a condition for many multinational companies to gain approval to open retail stores in India.