IKEA unveils ambitious plans with 20% price reduction strategy reveals Surfaces Reporter (SR)
In a significant development at Davos 2024, IKEA, the renowned home furnishing brand, unveils a robust strategy for its presence in India. Deputy CEO Juvencio Maeztu shares insights into IKEA's dynamic plans, emphasizing a 20% price reduction on over 250 products, marking a global initiative that includes the Indian market.
Maeztu, speaking at the World Economic Forum, expressed IKEA's commitment to creating a better life for people in India. He highlighted the company's long-term vision, citing the timely decision to reduce prices amid high inflation and interest rates. The price cuts, to be implemented in the coming weeks, aim to enhance affordability and accessibility for consumers.
"IKEA loves India, and India loves IKEA," declared Maeztu, underlining the company's successful fulfillment of promises, including substantial investments, gender equality achievements, and local sourcing targets. With Phase One accomplishments secured, IKEA now sets its sights on expansion, announcing plans to open additional stores and strengthen its online presence across Indian metros.
A noteworthy revelation comes as IKEA declares its intent not only to produce in India but also to export from the country. Maeztu emphasized the need for partnerships with states, welcoming the government's efforts to raise quality standards. With an existing supplier base connected to thousands of farmers, IKEA has already been producing mattresses, bookcases, sofas, and accessories in India.
As part of the next phase, Maeztu emphasized the importance of harmonizing with international standards to facilitate both local consumption and exports, aiming to leverage volume to lower costs and advance sustainability efforts. The company envisions growth both online and offline, with plans to deepen its physical presence in major cities like Bengaluru, Mumbai, and Delhi, while simultaneously expanding its online reach to cities like Pune, Surat, and Vadodara.
In a technological stride, IKEA announces its embrace of artificial intelligence (AI), leveraging it to enhance business efficiency. Maeztu outlines a two-dimensional approach to AI, emphasizing its potential to lower prices and increase operational efficiency while maintaining a moral compass in the company's AI applications.
With this comprehensive strategy, IKEA signals its unwavering commitment to the Indian market, setting the stage for a transformative phase in its operations within the country.