IKEA is opening smaller, more convenient stores in China to better meet customer needs as the economy slows and competition grows. The company has already started testing these smaller formats in cities like Xi’an and Shenzhen. These new stores, like the one in Shenzhen, offer personalized advice for complex purchases, such as kitchens, in spaces that are only a fraction of the size of IKEA’s usual large stores.
As China’s property market struggles, fewer people are buying furniture, and local competitors are gaining ground with more customized services and stronger online sales. To stay competitive, IKEA is investing ¥6.3 billion ($1.2 billion) over three years to open more stores, improve delivery systems, and offer cheaper products. IKEA is also increasing its online presence by selling through popular platforms like Tmall and WeChat.
Source: The Business Times
