Winning formula

One winning formula that IKEA plans to stick with is low price points, by offering 1,000 products priced under Rs200 (Dh10 or $2.97), said IKEA Group CEO Jesper Brodin, adding it was keen to avoid missteps made in Australia and China, where its initially higher pricing discouraged potential customers.

Although IKEA plans to gradually ramp-up local sourcing, one challenge to keeping prices low will be taxes, said Brodin. “I’d say the biggest challenge for us is [import] duties. That’s not something we can do something about.”