Ikea, the Swedish retailer which has expanded in China in a big way, plans to double the amount of goods it buys from India, including textiles, in the next three to four years, to $1.3 billion according to its CEO Mikael Ohlsson quoted in the New York Times.
Ikea said it was investing about $163 million, in social programs to help women and children in India and South Asia. These investments make Ikea the largest corporate partner in the world to aid agencies including Unicef and Save the Children, representatives of those organizations said Monday.
At my company, Amritt, we have seen a huge increase in sourcing inquiries from Western companies who are looking beyond China to buy products and materials for their customers’ needs. Labor issues in China and the rising yuan are leading companies such as Ikea to look further at India and other locations to balance their sourcing plans for 2011 and beyond.
