India is a top investment priority for Ikea, speed of development interesting, says Jesper Brodin, Global CEO of Ingka

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Jesper Brodin, Global CEO of Ikea's franchisee holding company Ingka Group. Acknowledging that India is a "challenging market", Brodin in an interview with The Economic Times said it is tough "keeping up with the rapid development of digital and physical infrastructure in the country". “It has been interesting to see the speed of development over the last five to ten years.

India has moved from a country catching up to being a country that in many aspects are leaders in digital and more so the economic progression," Brodin said. Ingka, the largest global franchisee of Ikea, contributes close to 90 percent to its total sales. The brand is owned by Inter Ikea, a separate entity responsible for manufacturing all Ikea products.

Brodin, who previously served as an assistant to Ikea founder Ingvar Kamprad, said he identifies India as the primary focus for the company's expansion. He emphasised India's significance due to its size, adding that Ikea's global vision aligns with the characteristics of the Indian market, aiming to serve a large population with substantial needs at affordable prices. “In terms of investment priorities, India ranks one, two and three.

We have consciously decided we cannot financially afford to be in the startup phase in too many places. But India is the top priority for us now. India is the ultimate market for us with all these people who have thin wallets, so many needs, and big family situations.

So, for us to succeed in India I think is the most exciting expansion project that we have," he said. In terms of pricing, Ikea has strategically reduced costs following a softening of raw material prices, resulting in a price cut of around 20 percent on various products, both in India and globally. This