Ikea cuts product prices in India by 16-39%
1 min read . Updated: 08 Feb 2023, 12:07 AM IST
PremiumRecovery in supply chains and fall in commodity prices have helped Ikea to consider cut in product prices
NEW DELHI : Swedish furniture retailer Ikea on Tuesday lowered prices by 16-39% across various product categories, as the recovery in supply chains and the decline in commodity prices help the company fuel demand with lower prices.
“Today, we are going all-in for lowering our prices in times where we have seen inflation and increased prices. People are concerned about the economy and inflation…so we can reverse the trend now and lower prices as much as we possibly can. This is the first step to becoming more affordable for Indian consumers," Susanne Pulverer, CEO and CSO, Ikea India, said in a virtual interview.
Goods with reduced prices hit stores, both online and offline, last week. “We have taken our most loved products and invested to make them more affordable," Pulverer said. Ikea had earlier reduced prices in 2021 too.
Ikea’s move to cut prices comes months after similar efforts worldwide. In October, the Financial Times reported that Ikea moved to lower prices across key products, as shipping costs eased and inflation across key materials cooled.
It isn’t unusual for Ikea to bring down price of its products. In fact, Ikea’s business model revolves around offering cheaper goods to consumers. The last two years of the pandemic and the resultant disruption in supply chain as well as a spike in commodity costs globally has haunted manufacturers of various goods. This, in turn, eroded consumer demand as everything from fuel to travel became costly. Volatility in supply chains has eased and commodity prices have cooled. Companies are now willing to pass on the benefits to shoppers.
“No one is immune to the price increases... But now is the time where we have more stability and have a possibility to lower prices and we are happy to take this step," Pulverer said.
