IKEA opens development center in India, its 4th globally
What's the story
IKEA, the world's largest furniture and home products retailer, has opened a new product development center in India. The facility will be part of the Inter IKEA Group and will design home furnishing products for both domestic and international markets. This is the fourth such unit after similar centers in Sweden, China, and Vietnam. The move highlights India's growing importance as a strategic growth and manufacturing hub for IKEA.
Strategic shift
India as a product-development and export hub
Oskar Lindkvist, Managing Director at IKEA Product Development Centre India, said that the company is no longer seeing India as just a sourcing base. Instead, it is looking at the country as a product-development and export hub for its global operations. "Retail is here, supply is here, and now product development is here," he said. This move shows IKEA's commitment to India's entire value chain from retail to manufacturing and now product innovation.
Market expansion
Designing products for Indian consumers
IKEA has been sourcing from India since the 1980s and works with around 40 suppliers in the country. The company supplies products worth about $400 million annually, most of which are exported. The new product development center will design 500 affordable and relevant products for Indian consumers, of which some could also be sold in overseas markets if demand arises.
Sourcing goals
Aiming to raise local sourcing to 50%
Linn Roslund, Managing Director of IKEA Services India, said that the company is focusing on India as a sourcing market for a wider range of products. "Ikea sources 30% of products sold in its Indian stores locally and aims to raise it to 50%," said Roslund. The new product development center will help develop products closer to Indian consumers and suppliers while leveraging the country's manufacturing capabilities, local materials, and craftsmanship traditions.