IKEA Expands Business in China’s Home Furnishing Market
SHANGHAI, Nov 10 (Bernama-Xinhua) – Global home furnishing giant IKEA is diversifying its product and service portfolio with continuous business expansion designed to tap the vast potential of China’s home furnishing market.
Meeting Diverse Consumer Demands
"Chinese people are looking for a more complete range of products and solutions and also looking for more value in different dimensions," Pontus Erntell, president and chief sustainability officer of IKEA China, told Xinhua during the 7th China International Import Expo (CIIE) in Shanghai.
While China’s real estate market is undergoing a shift, the Swedish firm still sees emerging business opportunities by catering to diverse consumer demands.
Chinese Consumers Seek More Value
Chinese consumers are not only looking for value for money, but also social value and emotional value to create a richer life at home, Erntell noted.
Growing Interest in Home Furnishing
Meanwhile, the company has witnessed significant interest in home furnishing not only for new buildings, but also for renovation purposes, Erntell said.
"We have seen a strong interest and growth in interior design services for renovation," he said. "Many people come and look for high-quality design solutions, basically at an affordable price."
Collaboration with Local Governments
Xinhua reported the company has worked with about 20 local governments across the country to offer discounts on certain items — as the country has introduced a raft of policies to stimulate housing-related consumption.
Confidence in Real Estate Market
According to a survey by the National Bureau of Statistics, confidence in the real estate market has strengthened and expectations have improved since late September. Retail sales of furniture products in China increased by 0.4 percent year on year in September, reversing a negative growth trend.
IKEA’s Strategy in China
Calling China "an exciting market" with robust competition in the home furnishing industry, Erntell said IKEA will stay close to the market pulse and develop together with it, while growing stronger within the dynamic landscape.
Digital Presence and Retail Innovation
IKEA is testing small retail units in China in a bid to stay closer to customers, and plans to strengthen its digital presence to embrace retail innovation, according to Erntell.
Global Retail Development Centre
The 2024 CIIE saw the launch of the first global retail development centre for Ingka Group, the largest franchisee of IKEA, which is designed to help IKEA develop more customer-oriented and innovative solutions for the Chinese market and beyond.
"We are looking at China as a strategic market both today and for the years to come," Erntell said.
Conclusion
IKEA’s expansion in China’s home furnishing market is a testament to the company’s commitment to meeting the evolving needs of Chinese consumers. By diversifying its product and service portfolio, IKEA is well-positioned to capitalize on the vast potential of the Chinese market.
FAQs
Q: What is IKEA’s strategy in China’s home furnishing market?
A: IKEA is diversifying its product and service portfolio to meet the evolving needs of Chinese consumers.
Q: What is the current state of China’s real estate market?
A: China’s real estate market is undergoing a shift, with confidence in the market strengthening and expectations improving since late September.
Q: How is IKEA adapting to the changing market landscape?
A: IKEA is testing small retail units in China and strengthening its digital presence to stay closer to customers and embrace retail innovation.