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IKEA’s operations in China

IKEA has 18 branches in mainland China, located in Beijing (Xihongmen and Siyuanqiao), Shanghai (Xuhui, Beicai and Baoshan), Guangzhou, Chengdu, Shenzhen, Nanjing, Wuxi, Dalian, Shenyang, Tianjin, Chongqing,

Ningbo, Wuhan (the only store in central China), Hangzhou, and Xi'an.

What’s IKEA’s secret?

Many people believe that IKEA's success lies in the fact that it creates a special shopping experience, such as the store layout, no salespersons, Swedish food, and customers assembling the furniture themselves.

But these are just superficial phenomena. A crucial factor is that it sells high-quality goods at low prices.

This is its weapon to conquer the market.

Compared with its competitors, IKEA sells furniture at prices that are 30% to 50% lower on average.

At the same time, it continues to cut prices. On the contrary, the prices of many furniture retail companies tend to increase over time.

IKEA's slogan is: "Valueful low prices." Its goal is to keep the prices of its products not too high, but not to make customers think that its products are bargains.

To achieve this, reducing costs has become the only way.

In fact, cost reduction runs through the entire process of IKEA products, from product conception, design, production to transportation and marketing. Ingvar thinks about cost all the time.

For this reason, he once said: "The waste of resources is a fatal mistake in IKEA. A target plan without cost accounting will never be accepted." IKEA will accelerate its expansion in China and open 8-10 stores in the next five years.

On December 15, 2010, at the groundbreaking ceremony of IKEA’s second store in Beijing, IKEA China retail manager Jillian said that IKEA opened its first store in China in 1998 and in the next five years, IKEA will expand its presence in China.

Open 8-10 new stores.

Compared with the past 12 years, when only 8 stores were opened, IKEA, which develops by buying land and building its own stores, has significantly accelerated its development.

Jillian said, "After a long period of exploration, IKEA believes that we can penetrate into the broader first- and second-tier markets in China." In the past fiscal year, IKEA China sales data achieved a 23% growth.

In fiscal year 2010 (September 1, 2009 - August 31, 2010), IKEA Group's sales increased by 7.7%, reaching 23.1 billion euros, and IKEA's China sales exceeded 3.7 billion yuan.

Du Fortin, president of the Asia-Pacific region of IKEA Home Furnishing Group, said, "In the past few years, the Asia-Pacific region has been the fastest growing region in the IKEA Group. Among them, the Chinese market has maintained a compound growth rate of 15% per year. In the future, in 15-25 years, China will

It will become the single national market with the largest sales contribution to IKEA. "IKEA China's sales in fiscal year 2010 exceeded 3.7 billion yuan. In fiscal year 2010 (September 2009 to September 2010), IKEA China's financial report shows that IKEA China's sales increased compared with fiscal year 2009.

23%, more than 3.7 billion yuan.

In the context of the new real estate policy affecting China's overall home furnishing retail, as the world's largest furniture and home furnishings retailer, Swedish IKEA has finally taken a big step to expand its stores in China.

According to IKEA’s latest site layout plan, new stores will be built in Shanghai, Beijing, Tianjin, and Wuxi within three years, and Wuhan has also successfully obtained development land.

IKEA China Retail President Jillian told reporters at a media meeting held on the 25th, "At the same time, IKEA will launch a 'complete kitchen' for the first time in China, providing complete services from design to installation to full product sales." The above.

The area of ??the IKEA stores in the project is no less than 150,000 square meters. Unlike the IKEA stores that opened earlier in Shanghai and Guangzhou, which only sell household products, the new stores will be equipped with catering, children's centers and other facilities.

IKEA invests US$120 million to open store in Chongqing. On September 24, 2011, IKEA officially signed a contract to settle in Liangjiang New District, Chongqing. It will invest US$120 million to open a store in Chongqing and establish stores and processing areas.

IKEA has opened stores in 7 places including Beijing, Shanghai, Guangzhou and Chengdu.

The relevant person in charge of Swedish IKEA said that Swedish IKEA regards Chongqing as the current strategic focus of its layout in inland China and is very confident in investing in Chongqing.

Ding Hui is appointed as the managing director of Intelligent IKEA Shopping Center China. Ding Hui, who was the financial manager of IKEA China and the manager of the exclusive service center, is appointed as the managing director of Intelligent IKEA Shopping Center China.

Most importantly, this newly established company is specifically responsible for the investment and development of IKEA's commercial real estate in China.

Daxing store opening IKEA media conference for fiscal year 2012 was held at IKEA Shanghai Beicai Shopping Mall.

At the press conference, Jillian, IKEA’s retail manager in China, revealed that IKEA’s second store in Beijing, the Daxing store, opened in 2013.

In addition, the Daxing store has launched for the first time a decoration and design service for families - IKEA decoration design service HFC, which can help customers plan and design IKEA home products after the basic decoration is completed, making the room more designed and making more rational use of space.

A soft decoration service that integrates design, purchase, pickup, delivery and installation.

According to IKEA China retail manager Jillian, in the last fiscal year, IKEA China sales exceeded 4.9 billion yuan, a 20% increase over the same period; more than 31 million consumers visited IKEA stores, a 20% year-on-year increase.

In the next two years, IKEA will continue to open stores across the country.