The world’s largest furniture and home products company, IKEA, has stated that it has come to India to stay. This statement was given by their global CEO, Jesper Brodin. The changing political landscape of India has not affected their decision to produce in India.
A few foreign retail executives had expressed caution recently due to the government’s latest draft policy. This policy might bring widespread changes in the e-commerce market.
“Our business is long term. Of course, politics follows its own cycles,” Brodin said in Hyderabad, where the largest Swedish retailer opens its first outlet in India on Thursday. “For me and for us, there is logic in what India is doing for the development of India and we have to trust and believe that and it will continue to happen. So I would say we are not sleepless over that.”
Brodin confirmed that India was a long-term investment and one of the biggest future markets for IKEA. India is a big commitment for them and they are prepared to take the risks.
The company has been aggressive in its pricing. They are selling low priced goods. That is because they want a long-term market and not a short profit.
“Coming years, we will exponentially increase our efforts into digital interface with the customers,” the CEO said. About 5% of IKEA’s 38 billion euros global revenue in 2017 came through online sales.