Global home furnishing giant IKEA has opened its first integrated store in Shanghai in collaboration with Livat, a mixed-use shopping center operated by Ingka Group.
The new store, located in Shanghai's Hongqiao area, marks IKEA's fourth store in the city, reinforcing its presence with an online and offline shopping experience that prioritizes sustainability and affordability, the company said.
Highlighting the importance of the Shanghai market, Cindy Ruan, vice-president of IKEA China, said, "The continued development of the Shanghai market offers significant innovation and opportunities, and IKEA remains committed to providing high-quality products and services while growing alongside the city."
Covering a total area of 21,623 square meters across two floors, the new store offers over 9,500 home furnishing products, catering primarily to young people and families in Shanghai and the surrounding areas.
Sara Del Fabbro, deputy retail manager of Ingka Group, attended the opening ceremony in Shanghai, and underlined the importance of the Chinese market to IKEA's global strategy, acknowledging China as "one of our most important strategic markets".
"Retailing is developing so quickly, and consumer needs are constantly changing. This is a great place to be, not only for China but for global IKEA," Fabbro said, adding that she was impressed by the omni-channel retailing in the Chinese market where both the physical and digital dimensions of shopping are converging.
"For retailers, it's not about steering people toward one channel or another, but rather being present where they are and meeting them where they want us to be," Fabbro said.
Affordability and accessibility remain key drivers for IKEA in China, especially amid economic pressures across the globe.
"In times when consumers have thinner wallets and face higher everyday pressures, our everyday low-price strategy is more relevant than ever," Fabbro said.
Last year, IKEA invested in reducing the prices of 500 key products, resulting in a 70 percent increase in sales of lower-priced items compared to the previous year.
"This positive consumer response reinforces our belief that this is the right approach," she added.
IKEA plans to further lower prices on an additional 500 products this fiscal year, with an investment of about 273 million yuan. Fabbro said that a combination of affordable pricing and innovative solutions that address consumer needs is driving the company's growth in China.
Globally, IKEA continues to expand while adapting to changing consumer behaviors. In China, the company is exploring new store formats, such as its "Plan and Order Points", where customers can order, buy and plan their home furnishing solutions. This concept was tested in Shenzhen, Guangdong province earlier this year.
In addition to its physical expansion, IKEA is strengthening its digital capabilities, with online sales now accounting for 25-26 percent of the company's total revenue in China.
