Retail

Sweden's Ikea set to invest 5.3 bn yuan in China in FY2023

26 Aug '22

2 min read

Pic: Shutterstock/ light poet

Ingka Group, the parent company of Swedish home furnishing retailer Ikea, will invest 5.3 billion yuan (around $772.9 million) in China in fiscal 2023 (FY2023). The investment capital is intended to be utilised to expand business digitalisation, creation of new stores and shopping malls, and the integration of several distribution channels.

Ikea will launch a small-scale store in Hefei, which is the capital of East China's Anhui province, as part of the company’s store expansion strategy in China for fiscal 2023, according to Chinese media reports. A second store in the city of Xi’an in Shaanxi province will also be set up. Fiscal 2023 will start from September 1, 2022.

Even as Ikea closed down its 8,500-square-metre store in northeast Shanghai's Yangpu district in July 2022, the city will remain one of the most important investment destinations for Ikea. “The major purpose is to realise more effective mapping in the city,” Ikea China vice-president Lydia Liu was quoted as saying by media reports.

Ikea had revealed a three-year strategy in 2019 for its Chinese market, part of which was an investment of 10 billion yuan (or $1.46 billion). The company has recently declared that it has met its investment target by establishing an omni-channel distribution network and providing more discounts, products, and solutions to consumers in China. In the last three years, Ikea’s offerings have been extended to around 1 billion Chinese consumers via platforms such as the online shopping mall on WeChat and the Tmall store.

Fibre2Fashion News Desk (NB)

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