With a history of doing business in China spanning six decades, IKEA sees significant potential for continued growth. — China Daily
SHANGHAI: IKEA, a leading global home furnishings maker and retailer, remains deeply committed to the Chinese market, reinforcing its long-term presence through strategic investments in retail and supply chain operations and sustainable development, says its top executive.
Inter IKEA Group chief executive officer Jon Abrahamsson Ring said that the company is committed to China’s economic landscape, innovative supply chains and sustainable initiatives during his participation at the China Development Forum 2025 held on Sunday and Monday in Beijing.
With a history of doing business in China spanning six decades, IKEA sees significant potential for continued growth.
“We are very confident, we believe in China and are planning now for the next 60 years,” Ring said.
The CEO said that the company aligns with China’s long-term strategic vision, highlighting shared values in sustainability and accessibility.
“Serving about one billion customers annually, IKEA is committed to providing affordable home furnishing solutions while prioritising environmental responsibility,” he added.
Recognising the vast potential of the retail market, Ring said that IKEA serves about 90 million customers in China each year but sees ample opportunity for expansion in a market of over 1.4 billion people.
He oversaw the retail business of IKEA in the early years when the company entered the Chinese market.
IKEA is evolving beyond its traditional large-format stores by integrating smaller store formats that are closer to urban communities, as well as enhancing its eCommerce solutions to reach more consumers.
In addition to its large store format in suburban areas, IKEA has introduced smaller retail formats in recent years, which enable more frequent customer visits and attract new customers by bringing them closer to the brand.
“Instead of visiting our big stores an average of four times a year, they now visit smaller stores 10 to 12 times a year,” he said.
The company has also capitalised on its growth in global eCommerce.
“We have gone from less than 5% eCommerce five years ago, to today where it accounts for 26%,” Ring added.
In addition to retail, China plays a vital role in IKEA’s global supply chain, contributing over 25% of its global sourcing.
“We source almost all our material categories here in China,” Ring said.
This regional strength allows IKEA to maintain a robust supply chain network, with 80% of its products sold in China being sourced from China.
“The combination of global and regional capabilities makes us more resilient,” he said.
IKEA fosters long-term relationships with over 300 suppliers in China, encouraging collaboration in innovation and sustainability efforts.
“On average, we have worked with our suppliers in China for 15 years or more. We don’t just buy and leave, we develop methods to recycle materials, optimise production processes and minimise waste together,” Ring said. — China Daily/ANN
