Swedish home products retailer, Ikea, said on Monday it has decided to delay its planned entry into India’s market because of concerns about local sourcing requirements, according to an FT report.
Chief executive Mikael Ohlsson noted that the country’s rule for single brand retailers was a hindrance and needs to be re-evaluated. He said: “We will need to see what this means for us.”
Currently companies operating in the Indian market must supply 30 percent of produced goods from regional, small and medium-sized companies.
However, The world’s biggest furniture vendor has increased its expansion in China, where it has opened three new stores each year.
Ikea is moreover planning to open further stores in Russia.