Ikea China investing $38 mln to expand offerings

Consumers browse products at an Ikea store in Beijing in August. (SONG YU/FOR CHINA DAILY)

Ikea, the Swedish home furnishing and furniture retailer, said it plans to invest 273 million yuan ($38.3 million) in China in the fiscal year to August 2025, and exploits post-COVID-19 consumption trends like more rational buying and a growing preference for cost-effective products.

To this end, Ikea will expand its product and service offerings, its senior executives said. Over 500 lower-priced products, mainly mattresses, bed frames, bedroom textiles and bedroom storage, will be launched. Up to 2,800 products related to sleep, including 400 new products, are in the pipeline for launch during the period, Ikea said.

Pontus Erntell, CEO, president and chief sustainability officer of Ikea China, said: "I think the role of homes has changed over time. We see home has become much more multifunctional and plays different roles. It's a safe place for people, and now it's also a place to relax, interact, exercise and work. This leads to this feeling that people value their homes much more."

On the one hand, consumers seek value for money through rational consumption. "Consuming smart for good deals" is in. On the other, people are also shifting from pursuing rational consumption to seeking multidimensional values, like social value, personal value and sustainability, Erntell said.

Based on Ikea's understanding of Chinese consumers' special requirements and preferences, more than 10 products are tailored specially for the China market, the company said.

According to a report by Life Week, a lifestyle magazine, which cited a white paper on Chinese people's sleep trend earlier in March, about 28 percent of people in the country sleep less than six hours per night; 64 percent have poor sleep quality, with many others struggling with sleep problems.

Consumer demand for better living is on the rise in China. Also, with supportive policies set to boost home furnishing consumption, combined sales of the omni-channel retail home furnishing market are projected to rise substantially from 4.6 trillion yuan in 2023 to 5.3 trillion yuan in 2027, according to a report by iResearch.

Such momentum will be further driven by the newly released demand for existing homes and increasing requirements for smart home appliances, the report said.