If you've ever wondered where IKEA's rugs and carpets come from, a new 360-degree virtual reality video by WSJ captures how around 2,000 workers in a north Indian factory at Bhadhohi make carpets for the Swedish home furnishing company .
IKEA was the first major single brand retailer to get foreign direct investment in India. It has ambitious plans to expand into the country, but has been slowed down by its foreign direct investment laws. These require foreign retailers to acquire one-third of their merchandise locally. In addition, the Indian government has given the company a deadline of meeting these targets five years from the launch of its first store.
In order to meet these targets, IKEA has been helping its suppliers set up factories that meet its standards, by sharing manufacturing, design and technological skills. The rugs produced by the factory in Bhadohi, which has been a traditional hub of carpet-making, are sold at IKEA stores around the world.
The company will open its maiden store in India in Hyderabad in mid-2017, apart from a long-term plan to have 25 stores across the country by 2025.
IKEA currently sources products worth $370 million from India and is planning to double this figure by 2020. While it currently works with 50 suppliers in the country, it is trying to increase its supplier base in the country under its 'Make More in India' initiative. This includes textiles, rugs, as well as furniture, mattresses, plastics and lighting.