(CIIE) Invest in China: IKEA set for dynamic styles of Chinese home furnishing market

SHANGHAI, Nov. 10 (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.
“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 are not only looking for value for money, but also social value and emotional value to create a richer life at home, Erntell noted.
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.”
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.
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.
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.
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.
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. ■