IKEA plans to increase toy sourcing from India to expand operations
Category: #retail  By Pankaj Singh  Date: 2021-03-01
  • sharesocial_share_icon
  • Twitter
  • Facebook
  • LinkedIn

IKEA plans to increase toy sourcing from India to expand operations

IKEA, a furnishing company, has reportedly announced plans to scale up toy sourcing from India to expand its operations in the region. Besides, IKEA India is targeting towards recording over 12% of its sales by developing a range of products in the kids category over the coming years.

In the current scenario, the Swedish company has been sourcing only cotton-based soft toys from the region. It also took part in the India Toy Fair and revealed plans to explore opportunities to collaborate with the key players in the toy segment. For the record, 80% of the Indian households have children, leading to a significant surge in the toy demand. Most recently, the regional government has made significant investments and created 8 toy clusters.

Kavitha Rao, Commercial Manager of IKEA India, has reportedly cited that, apart from the cotton segment, the company is planning to expand its reach in some other categories like wooden toys. IKEA has developed a fairly broad range of nearly 1,000 products as a part of the children’s range, contributing over 6% to 8% of the entire business.

Ms. Rao further added that the furnishing company is planning to increase the rate of its toy business to 10% to 12% in the near future. Its product range also covers mattresses, beds, and ergonomic storage & seating solutions that are manufactured specifically for children. The recent approach to enter the toy segment, which is its huge initiative and focus area, is also expected to create high opportunities in terms of sourcing toys locally.

IKEA is presently focusing on new categories such as sofas, mattresses, and furniture, apart from expanding the textile category. The company has formed a close connection with India by sourcing products from the region and working with nearly 60 suppliers to boost its global operations over the past 35 years. In December 2020, IKEA India launched its 2nd retail store in Mumbai and is aiming at opening another store in Bengaluru.

Source credit:

https://www.thehindu.com/business/Industry/ikea-to-increase-sourcing-of-toys-from-india/article33954488.ece



About Author

Pankaj Singh

Email: [email protected]   linkdin twitter

Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

More News By Pankaj Singh

BPOC joins hands with SPCP to expand access to healthcare services

BPOC joins hands with SPCP to expand access to healthcare services

By Pankaj Singh

Healthcare-focused private equity company BPOC has recently inked a collaboration with Dr. Thomas Bat, in order to form a regionally focused primary case MSO (management services organization). SPCP (Southeast Primary ...

MercadoLibre planning to double workforce amid e-commerce boom

MercadoLibre planning to double workforce amid e-commerce boom

By Pankaj Singh

MercadoLibre Inc., an Argentinian e-commerce firm, has reportedly planned to bump up their workforce this year. The company has also invested USD 1.1 billion for expanding their services and warehouse space in Mexico, ...

Vesta Healthcare raises $65M for home healthcare transformation

Vesta Healthcare raises $65M for home healthcare transformation

By Pankaj Singh

Leading digital health and 24/7 clinical provider, Vesta Healthcare, has reportedly secured nearly $65M in a financing led by Deerfield Management Company. The event also saw participation from existing investors, such...