Swedish furniture retailer IKEA has announced that it will be lowering its prices for some of its bestselling products in the range starting August 27. The reduction in price is around 20-35% and is different for different products.
IKEA said in a statement that this a long-term strategic step it has taken. Prices will be lowered for products including chairs, toys, mattresses, bookshelves, sofas and many more products for the bedroom, living room, kitchen and outdoor.
Kavitha Rao, Country Commercial Manager, IKEA India told TNM that larger volumes, quantities on products that have done very well has allowed the company to look at how the design, manufacturing processes with suppliers and distribution can be improved, thus reducing overall costs.
“What we are doing now is really passing on this benefit to our consumers. The idea is that the moment we are able to reduce prices permanently of these products, consumers will buy more of them, and cycle continues,” she added.
These products with the lowered prices will be available in the Hyderabad store and IKEA online stores in Hyderabad, Mumbai and Pune.
“Lowering our prices, without compromising on quality, is a step towards that. The changing customer mind-set with the pandemic has made affordability more relevant. And this situation makes it even more important for us to be able to live up to meet today’s reality,” Kavitha added.
Apart from lowering prices, IKEA has also said that it will source more locally in India, especially when it comes to raw materials such as wood. Until now it has been sourcing raw materials for textiles and metal.
“Flat packaging, strong service offer, transparent pricing, sourcing quality materials in a sustainable way are some of the ways that help IKEA keep a competitive price point. Local sourcing remains a main driver of affordability and over a third of the products under New Lower Price are ‘Made in India’,” the company said in a statement.
This announcement also comes on the back of Times of India reporting that IKEA has set up a global technology centre in Bengaluru where data and analytical work will be done to support IKEA’s operations globally, for which it may hire up to 1,000 employees.