IKEA Increases Indian Toy Sources to Expand Operations: Responsible

A senior company official said that leading Swedish furniture company IKEA, which has a portfolio of more than 1,000 products as part of its children's range, is looking to expand its supply of toys from India for its operations here.

In addition, IKEA India also aims to generate around 12 percent of the sales of its range of baby products in the coming years.

Kavitha Rao, commercial director of IKEA India, said the company, which currently exports only soft toys made from cotton from India, is also exploring expanding into other categories, such as wooden toys.

IKEA, which participated in Games India Expo, said it is exploring multi-player partnership opportunities in the games sector, which is an important focus for the company.

When asked if IKEA will increase the purchase of toys from India, Rao told PTI: "Of course it will. This is one of the main reasons why we are part of the Toy Expo."

He added: "Because we can be a great buyer and of course it depends on meeting standards and design ideas, but we think there is a great opportunity for us to meet some potential suppliers as part of the player as well.".

In India, 80 percent of families live with children.

"IKEA has a fairly wide range of over 1,000 products as part of its baby product range, contributing between 6 and 8 percent now, and our goal is to reach 10-12 percent in the near future." Rao said.

In addition to toys, the collection includes specially designed cribs and mattresses, convenient storage solutions, and seats designed for children, among others.

IKEA said that the India Games fair will help you connect with new partners and understand the ecosystem here.

"This is also the reason for our participation in the Games Expo, which is organized by the Government of India because it also gives us the opportunity to understand what an ecosystem is," he added.

In addition to cotton, IKEA feels the opportunity to purchase wooden toys for its stores.

"If you look at our collection, we have a lot of wood-based toys. So if we had a chance to get some of that from India, we would definitely like to explore it," Rao said.

However, he also added that IKEA has certified forest wood as it is always sourced from sustainable sources.

Recently, the government created eight gaming groups with significant investment in this area.

"We think it's a great approach because it will also give us the opportunity to see the possibilities of getting the games locally, also from India," he said, adding that "this is a great initiative and a great approach for us. "

IKEA is working on new categories such as furniture, mattresses and sofas, along with building the textile category that India has traditionally enjoyed.

Under the foreign direct investment policy for brand-owned retailers, a local sourcing requirement of 30 percent of the value of products is imposed. This can be achieved on average for the first five years and annually thereafter at your operations in India.

However, in August 2019, the government amended the ruling by adding that all purchases made in India by a retailer with a single brand of that brand will be counted within national sources, regardless of whether the products purchased are sold in India or are exported.

IKEA has sourced from India for its global operations for almost 35 years. It works with around 60 suppliers. IKEA India opened its second retail store in Mumbai last December and is operating its next store in Bengaluru.

IKEA India, part of the Ingka Group, opened its first retail store in Hyderabad in August 2018, followed by online stores in Mumbai, Hyderabad and Pune.

On Saturday, during the opening of the first India Games Expo 2021, Prime Minister Narendra Modi called on toy manufacturers to use less plastics and environmentally friendly materials, as well as focus on innovation.

He lamented that India's share of the US $ 100 billion global game market is much smaller and that about 85 percent of the games sold in the country are imported.read more...https://business2business.co.in/article/2815/ikea-to-increase-sourcing-of-toys-from-india

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