Core Viewpoint - IKEA China is set to continue its low-price strategy while undergoing brand repositioning to adapt to changes in the Chinese market, with plans to invest 160 million RMB in the upcoming fiscal year 2026 to launch over 150 lower-priced products [3][4][5]. Investment and Product Strategy - For fiscal year 2026, IKEA China plans to invest 160 million RMB, focusing 70% of this investment on best-selling products [3][5]. - In the past two fiscal years, IKEA China has invested a total of 673 million RMB, launching over 1,000 low-priced products [5]. - The company has introduced significant price reductions, such as lowering the price of its popular hot dog from 7.99 RMB to 5 RMB [5]. Sales Performance - IKEA China's market sales fell from 12.07 billion RMB in the previous fiscal year to 11.15 billion RMB, a decrease of nearly 1 billion RMB, representing a decline of approximately 10% year-on-year [3][7]. - The sales figures have decreased nearly 30% from the peak of 15.77 billion RMB in 2019 [3][7]. - Despite the low-price strategy, overall sales did not exceed the previous fiscal year's levels, with a reported decline of 7.6% in sales for fiscal year 2024 [7][8]. Market Trends and Consumer Behavior - The Chinese home furnishing market is increasingly focused on "quality-price ratio," with 77.84% of consumers willing to pay for both quality and emotional value [7]. - The shift in consumer behavior towards rational value and emotional resonance with brands is driving the demand for personalized products [11][12]. Channel and Innovation Strategy - IKEA China has launched an official flagship store on JD.com, emphasizing low prices and promotional offers [9]. - The company is exploring new offline store formats, including smaller stores, to enhance customer experience and expand its digital footprint in China [10]. Brand Repositioning - IKEA China has introduced a new brand positioning, "Home Gives More to Life," to better resonate with contemporary consumer values and emotional needs [11]. - The company aims to integrate consumer-centric principles into all aspects of its operations, from product design to pricing strategies [12].
宜家中国“谋变”新财年 投资1.6亿元推出超150款低价产品
Zhong Guo Jing Ying Bao·2025-09-14 00:36