Published on : Jan 19, 2015
As a part of its decision to double its sourcing from India, IKEA - the Swedish retailer - held a seminar in the country last week. The seminar was based on new ventures and business opportunities for its prospective suppliers. The seminar, titled ‘Make more in India’, was attended by over 75 prospective suppliers belonging to various categories.
Currently, IKEA sources around US$370 million (EUR 315 million) from India and it has expressed its plans to double this figure by the year 2020.
The categories that IKEA is looking at for new suppliers consist of existing divisions as well as new ones. In the existing category, IKEA is seeking suppliers for home furnishings such as rugs and textiles. In the new categories the retailer hopes to find suppliers for mattresses, furniture, plastics, metal, and lighting. In a press release IKEA stated that the company was discussing exciting new possibilities such as the use of sustainable and local material like jute, bamboo, and acacia.
Chief executive officer of IKEA India Juvencio Maeztu said that the company is planning to open retail outlets and as a result IKEA is planning on ways that they can grow their business in India holistically. Juvencio said that the plan includes knowledge transfer as well as an investment in developing skills. The company also intends on increasing employment in the retail and supply chain.
The seminar held last week was aimed at introducing potential suppliers to the value-based working methods of IKEA, its business model, and the potential business opportunities. It coincidentally so happens that the IKEA seminar resonates with the agenda of India’s new Prime Minister Mr Narendra Modi. He has been encouraging the ideal of ‘Make in India’.