Sweden-based home furnishing retailer IKEA has announced that it would not increase the prices of low-end furniture and furnishing goods in India even if the brand’s expenses increase because of Centre’s recent decision to hike the customs duty on selected furnishing items to cut down imports of non-essential products.
The retailer is also expecting its e-commerce market in India to outperform every other market, where the company retails its products. IKEA has also decided to sell its products on its exclusive e-commerce platform and will not tie-up with any other e-retailer in the country.
Patrik Antoni, Deputy Country Manager, IKEA India affirmed the media that at present, there were no issues, but if the surge in customs duties kept on increasing on furniture and furnishing items, then at some stage the company would have to pass the burden on to customers. “If the situation comes, we may do it on higher-end products, not lower-end ones,” Patrik added.
Marking out that IKEA was an international company, Patrik further said, “IKEA appreciates global trade but would not want trade obstacles like tariffs and import duties. These obstacles will only hamper the ease of doing business, that will eventually affect the customers in the long run.”
It is important to mark out that, the central government increased customs duties in a bid to cut down the imports of non-essential items. The 19 products on which the government has imposed a surge in customs duties include jet fuel, air Conditioner and household items.
Notably, IKEA imports the majority of its products that come under the list of items on which the government has increased customs duty.
