Ikea to increase stores, improve assets in China

Part of Ikea’s overall goal is to grow with its furnishing suppliers so as to serve its global market better, said Ingka Group CEO Brodin. — China Daily

BEIJING: Global home furnishing giant Ikea will invest 6.3 billion yuan in China over the next three years to add physical stores and improve its existing logistics, digitalisation and sustainability processes, in order to attract more consumers, its top executive says.

Ikea, which entered the China market 25 years ago and has invested 43 billion yuan in the country so far, plans to open another store in Xi’an, Shaanxi province, doubling its stores in the city to two.

It also plans to open a mall in Shanghai in 2024 besides launching a distribution centre in Tianjin to expand its footprint and diversify the functions of its offline stores.

In China, the Ingka Group, the largest Ikea retailer that represents 90% of Ikea retail sales, runs 34 stores, two experience centres and eight Ingka Livat Shopping centres.

Part of Ikea’s overall goal is to grow with its furnishing suppliers so as to serve its global market better, said Jesper Brodin, chief executive officer of Ingka Group.

Brodin, who is on a visit to Beijing, said on Wednesday, Ikea believes in investing in China for the long term. “We believe the Chinese government is taking very strong measures to stimulate consumption, which will be very important to bring trust to consumers. Ikea has offered to be part of it and will support the journey.

“We in Ikea always believe that entrepreneurship in China is fantastic, and so is the speed of digital development and sustainability. We truly believe that China will be at the forefront of becoming a sustainable society.”

In China , Ikea has most of its capabilities and assets like retail, distribution, production, design, digital development and real estate set up, he said.

“All the things we have in China are partly to serve the development in China, and partly to help us become better globally,” Brodin said. — China Daily/ANN

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