Ikea will invest EUR20 million (US$23.4 million) in the coming fiscal year to reduce prices at its China stores, aiming to attract budget-conscious shoppers and compete with cheaper local alternatives, reports Bloomberg News.
Tolga Oncu, chief operations officer of Ingka Group, Ikea's largest franchisee, said the company is prioritising China in its global pricing strategy. 'We are continuing to invest in lowering the prices in China compared with other countries,' he said.
The Swedish furniture giant is facing headwinds in China, where weak consumer spending, a sluggish property market and slower economic growth have dampened demand for home furnishings.
Ikea's position as a provider of affordable furniture is being challenged by e-commerce platforms offering similar designs at lower prices. These competitors have eroded Ikea's market share by undercutting its pricing advantage.
Oncu said it was too early to determine whether China would see deeper price cuts than other markets, but confirmed it remains one of Ikea's top investment priorities.
SeaNews Turkey
Tolga Oncu, chief operations officer of Ingka Group, Ikea's largest franchisee, said the company is prioritising China in its global pricing strategy. 'We are continuing to invest in lowering the prices in China compared with other countries,' he said.
The Swedish furniture giant is facing headwinds in China, where weak consumer spending, a sluggish property market and slower economic growth have dampened demand for home furnishings.
Ikea's position as a provider of affordable furniture is being challenged by e-commerce platforms offering similar designs at lower prices. These competitors have eroded Ikea's market share by undercutting its pricing advantage.
Oncu said it was too early to determine whether China would see deeper price cuts than other markets, but confirmed it remains one of Ikea's top investment priorities.
SeaNews Turkey
