IKEA opened its first China store in Shanghai in 1998, and now operates 27 stores, two experience centers, four distribution centers and seven parcel delivery centers on the Chinese mainland.
On Thursday, 22 August 2019, this Swedia-based company has announced its plan to make its biggest investment in China market in fiscal year 2020, China.org.cn reports. This investment is part of IKEA China’s “Future+” strategy for local market in the next three years with enhanced accessibility, digitalization and home expertise services as home furnishing boom is expected in China.
The planned investment will expand and increase IKEA’s presence in China by applying strategy to carter local consumer demands.
“The home furnishings market in China is now in a phase of stable growth. In addition, urbanization, digitalization and people’s increasing disposable income are changing the way how people live and consume,” said Anna Pawlak-Kuliga, CEO and president of IKEA China.
IKEA will upgrade its existing stores and expand four new stores in China the next four months. To accelerate China’s advanced digital adoption, IKEA will provide digital tools offline to simplify the shopping process to create an inspiring and convenient online shopping experience, as digital hub was established last month to enable the company’s digital capabilities.
Diverse business models will be explored to boost IKEA’s role as a home furnishing consultant, with key initiatives including full-house design services and upgrading its B2B service to work with commercial real estate companies. IKEA believe that its new strategy will contribute creating a better everyday life in Chinese market. ― Construction+ Online