MILAN, ITALY - IKEA is replacing Asian suppliers with Italian manufacturers, reportedly bnecause they can produce better quality goods less expensively.
"The company is permanently seeking to increase its purchases from Italian suppliers and it has found new Italian partners that substitute some Asian suppliers thanks to their skills, commitment and ability to produce goods with better quality and lower prices than Asian competitors," according to a statement from Lars Petersson, CEO of the Italian branch of IKEA, quoted by the Economic Times of India.
Italy is the number three source for furniture and furnishings for all IKEA Group. IKEA in Italy buys more than it sells in its stores in the peninsula: 8% of the volume of purchases of IKEA Group in the world is made in Italy, while the Italian market represents only 7% of the volume of sales of IKEA in the world. Kitchens represent 34% of the total.
IKEA says it has begun buying drawers, taps and toys from three Italian vendors replacing Asian sources.
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