Swedish Ikea will invest 5.3 billion yuan in China during FY2023
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 the 2023 fiscal year, according to Chinese media. A second store in the city of Xi’an in Shaanxi Province will also be established. Fiscal year 2023 starts on September 1, 2022.
Ingka Group, which is the parent company of Swedish home furnishing retailer Ikea, has announced that it will invest 5.3 billion yuan in China in fiscal year 2023. The investment capital is intended to be used to expand business digitization, create new stores and shopping centers, and integrate multiple distribution channels.
Even when Ikea closes its 8,500 square meter store in northeast Shanghai’s Yangpu district in July 2022, the city will remain one of the key investment destinations for Ikea. “The main aim is to realize more efficient mapping in the city,” Ikea’s China vice president Lydia Liu said, according to media reports.
Ikea had unveiled 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 achieved its investment goal by establishing an omni-channel distribution network and providing more discounts, products and solutions to consumers in China. Over the past three years, Ikea’s offerings have expanded to about 1 billion Chinese consumers through platforms such as the online mall on WeChat and the Tmall store.
Fibre2Fashion News Desk (OBS)