IKEA China will invest 160 million yuan during its 2026 fiscal year as part of a renewed focus on growth in the Chinese market. The Swedish home-furnishing group says the investment will support price reductions, new products, digital expansion and sustainability initiatives.
More than 1,600 new home products, 23 collections and over 50 new food items are set to be introduced in the coming year, with special emphasis on “complete sleep” and “kitchen living”. Over 150 best-selling items will see price cuts worth 160 million yuan. In the past two fiscal years, IKEA has already invested 673 million yuan in developing low-priced products.
The company has also launched an AI-powered digital design platform, now available in 31 IKEA markets, and opened new stores in Xi’an, Shanghai and Shenzhen, as well as its first pickup point in Shenzhen.
Tolga Oncu, retail manager and chief operating officer of IKEA Retail, Ingka Group, says:
“China is not only a vital link in IKEA’s global value chain; it is also the test-bed for retail innovation. We look very much forward to continuing innovating our retail business in China and bringing some learnings to other parts of the world.”
IKEA’s new brand promise for 2026, Home Is More Than You Think, is linked to its China Life at Home Report, which shows that people satisfied with their living spaces tend to be more optimistic about the future. The company highlights inspiration, longevity and affordability as its guiding values.
As part of the expansion, IKEA will increase its kitchen range with sustainable, cost-effective materials suited to Chinese cooking, and add more local dishes to its in-store restaurants. Additional investments will be made under the retailer’s “Growing Plus” initiative.
Sustainability remains central to the strategy. In August, Ingka Investments — the investment arm of Ingka Group — made its first Chinese circular economy investment by partnering with Shanghai Re-Mall, a recycler of post-consumer packaging waste. The company says it will continue to work with local partners to expand green operations and circular services.
Digital channels are also being prioritised. Last month IKEA opened a flagship store on JD.com, following the launch of a retail development centre in 2024 to design products, logistics and digital solutions tailored to the local market.
To date, Ingka Group operates 40 customer touchpoints in China, including 37 IKEA stores, two experience centres, one design studio and 10 Livat shopping centres.
Source: The Star
