Ikea Unpacks More Chinese Furniture in India Than America — Panjiva
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Ikea Unpacks More Chinese Furniture in India Than America

China 1758 Cons. Discr. - Durables 107 India 283 U.S. 3297

Furniture retailer Ikea is opening its first store in India after seven years of planning, part of a chain of 25 stores planned to be opened by 2025. The store has tailored its experience and mix according to local tastes, The Economist reports, with a focus on lower-priced products initially. That’s an important part of tackling predominantly locally manufactured competition.

In the build-up to the store’s opening the company had imported $29 million worth of furniture and related products in the six months to May 31, Panjiva data shows.

FILLING UP THE HYDERABAD WAREHOUSE

Chart shows Indian imports associated with Ikea. Lower panel indicates change vs. a year earlier.   Source: Panjiva

The company’s supply chain in India is more exposed to China than in the U.S. (56.2% by value vs. 28.4% by volume in the U.S.) and less so to Poland (5.7% vs. 23.6%). That likely reflects a mixture of product type, transportation costs (China’s proximity to India) and potentially tariff risks.

As outlined in Panjiva research of July 12, Ikea faces the prospect of increased duties on its U.S. imports from China. It could, however, eventually run into problems in India if furniture becomes subject to “Make in India” duties that have been applied in the electronics and other industries as a response to increasing imports.

CHINESE, NOT SWEDISH

Chart segments Indian imports associated with Ikea by origin and product (HS-4) for the six months to May 31, denominated in dollars.   Source: Panjiva

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