Ikea is withholding its entry into India despite New Delhi’s move to open its market to foreign retailers, Mikael Ohlsson, chief executive, told the FT. Mr Ohlsson said that India’s requirements that single-brand retailers source 30 per cent of their goods from local small and medium-sized companies was an obstacle to its investment that needed reviewing. Mr Ohlsson said the outright ownership of operations granted to foreign single-brand retailers earlier this month was “a very positive change”. But he warned that the conditions applied to local sourcing were “concerning” and more easily met by food retailers than single-brand companies with established, global product ranges.  The world’s largest furniture retailer is tripling its rate of expansion in China to three new stores a year, and is seeking to open more stores in Moscow in the year ahead.

This entry was posted by Kate Mackenzie on Monday, January 23rd, 2012 at 1:44 and is featured in The 6am Cut London (23 Jan 2012) . Tagged with ikea, india, retailers. Edit this entry.