Ikea cuts prices in India, cites improved sourcing

By

Isabelle Crossley

Published
Feb 9, 2023

Ikea plans to reduce prices on a significant portion of its inventory in India by up to 39%. The homeware, furniture, and accessories brand has been able to cut prices by ameliorating its sourcing in India as well as streamlining its design, packaging, product development, and volumes. 

“Lower prices are in the DNA of Ikea,” Ikea’s chief executive and chief sustainability officer Susanne Pulverer told the Press Trust of India. The price cuts in the country are planned as long term changes, rather than an inventory-management linked promotion or sale. 
 
Ikea plans to reduce prices on a wide range of products from 16% to 39%, ET Bureau reported. The business is not driven by competitive pressure from other brands, rather an observation that Indian consumers are price sensitive, according to Pulverer. Looking at its past four years of brick-and-mortar retailing in India, Ikea has concluded that offering products at affordable prices is vital for increasing its market share in the country. 

The business is confident that reducing prices on select items will not harm its profit margins in the long term as it anticipates that lower prices will lead to higher sales volumes. Although the exact number of products which will see their prices reduced has not been specified, the Pulverer said that these products will include some of Ikea’s “most loved” items.
 
Ikea has five stores in India and has invested close to Rs 10,500 crore in the country. The business is currently planning a roadmap for its next phase of investments in the market, Business Standard reported.