[Ikea has launched a low-cost product strategy in the Chinese market, and plans to invest 6.3 billion yuan in the next three years. In fiscal year 2024, more than 550items will be cut in price. At the same time, it will face fierce competition from Japanese household brand Nitori.]

Ikea adjusts its strategy in China to launch low-cost products to attract a wider range of consumers

Ikea recently opened in Taikuri, Qiantan, Shanghai.DaytonausaarcadeThe first low-cost boutique flash show, including 9.DaytonausaarcadeA number of reduced-price goods, including a 9-yuan watering pot. This is one of a series of price adjustments carried out by Ikea in the Chinese market, marking its strategic shift to a wider range of consumers.

Ikea plans to invest 6.3 billion yuan in the Chinese market in the next three years to launch more low-cost products. In fiscal year 2024, Ikea China will invest more than Rmb100m to expand its price investment range to cover more than 550items.

In addition, Ikea is actively engaged in digital transformation, stationing in Tmall and Mini Program, and setting up a digital innovation center in Shanghai, with a view to responding more flexibly to market changes and reaching new target consumer groups.

Ikea's challenges include competition from Japanese furniture brand Nitori. With its cost-effective products and active market expansion strategy, Nitori has more stores in the Chinese market than Ikea. Nitori plans to open 3000 stores worldwide by 2032, of which the Chinese market will account for 1/3 of its stores.

The competition between Ikea and Nitori, as well as the strategic adjustment of Ikea in China, reflect the changing trend of the home retail market and the diversification of consumer demand.

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