IKEA is looking to invest $1.41 billion in its Chinese operations to strengthen the network and improve its digital services in the country, Nikkei Asian Review reported on August 23.
The Swedish furniture maker announced its major investment plans during a press conference in Beijing.
According to the Asia Times, this is the largest investment in Chinese operations in IKEA’s history. The company has reportedly pledged to increase its investment in the next two years. IKEA is also planning to hire more than 3,000 new employees in China in the coming fiscal year.
Zhang Lina, vice president of business in IKEA’s Chinese department, revealed that the company is going to introduce new business models in the country. For instance, it plans to offer a whole-house design service.
Moreover, IKEA, which now owns 27 shops in China, is looking to open small retail outlets to expand its services to a wider range of customers. Per Nikkei, the first one will open in Shanghai by the end of Jan. 2020.
IKEA opened its first shop in China in Shanghai in 1998. Since then, the Swedish company has built a complete supply chain in the country, including four logistics distribution centres and seven distribution centres in 21 cities across the country.
Photo: Tanasan Sungkaew