Swedish IKEA is planning an investment of 1.41 billion USD in the Chinese market, the company announced at a press briefing in Beijing on 22 August 2019 according to Yicai Global.
The investment is the largest annual investment budget of IKEA in China in the history of the company and it is even expected to increase in the next two years.
The investment is to, among other, advance IKEA’s commercial operations and digitisation as well as hiring more than 3,000 new employees at the local unit.
“China’s market for home furnishings is currently in a period of steady growth,” Yicai Global notes that Anna Pawlak-Kuliga, president of IKEA China, said at the briefing.
“The company is brimming with confidence in the Chinese market,” the news media writes that Anna Pawlak-Kuliga added in reference to IKEA’s position on the Chinese market.
Zhang Lina, vice president of business at the China unit said at the press briefing that the unit is exploring new business models which buyers can already benefit from next month, September 2019.
“All the firm’s offline stores and online platforms will offer a whole-house design service starting from next month.”
China is home to 27 IKEA malls, two experience centers, four logistics distribution centers and seven distribution centers in 21 cities in the mainland.