Ikea china revenue Aside from that, IKEA’s minimalistic design appeal to IKEA’s key customer group in China, the younger consumers. g. 5% as the company invested more than EUR 2. , Ltd. com) location in Delft, Netherlands , revenue, industry and description. 6 billion in FY23). 2025, by share of voice Feb 5, 2025 · IKEA Korea sales revenue in South Korea FY 2020-2024; Bed Bath & Beyond: gross profit worldwide 2014-2021; Progressive Leasing's revenue share worldwide 2019, by category; Topics (including sales of IKEA products, food and services by IKEA . Aug 25, 2022 · They are the first store closures since Ikea entered the China market 24 years ago. Learn more about their online business including detailed eCommerce revenue analytics. China was for several years the fifth biggest market by revenue for Ingka Group, which runs most IKEA stores globally, but it has now slipped to Oct 10, 2024 · Last year, Ikea slashed prices to give inflation-weary customers a break, but revenue fell for the first time in four years. In FY24, IKEA stores welcomed 899 million visitors, an increase of 4. 9 million) yearly in Sep 27, 2024 · 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. 这些报告详细描述了宜家集团所承担的社会责任和环境责任，并介绍了为了达到这些目标，我们所作出的努力。 As of end of August 2015, there are 328 IKEA stores solely owned and managed by the IKEA Group with 155,000 co-workers in 28 countries and territories. Ingka Group consists of three business areas. It invested €2. 6% of global sales Sep 4, 2024 · DALIAN, China -- Swedish furniture giant IKEA plans to tap demand among increasingly frugal Chinese shoppers for low-priced products, aiming to invest 270 million yuan ($37. 71 new IKEA sales locations have opened this year – the majority were small stores and plan & order points. However, while IKEA tried to attract middle-class families with its traditional white-collar meals, the economic situation of these families had already changed. 3 billion RMB ($768 million) in China, which will go toward its digitalisation programs, enhancing operational efficiency, and new openings of stores and shopping centres. 9 2. 3% drop in IKEA retail sales revenue for the financial year 2024 (FY24), which totalled €45. Jan 4, 2022 · China has been the largest sourcing country for IKEA since 2015, with 22% of its global purchases with about 300 local suppliers, showing the size within the market. BEIJING -- When Ian Duffy was first put in charge of Ikea's 2009). 2015 Sustainability Report PDF Conshohocken, PA – [January 26, 2021] – Today, IKEA Retail U. 5% of pre-tax income – compared to EUR 307 million (15. 6 billion, an increase of 6. Apr 4, 2013 · However, Gillian Drakeford, head of Ikea China, said in an interview with the Wall Street Journal last March that: IKEA’s sales in China in fiscal year 2011, ending Aug. Aug 29, 2022 · Home furnishing retailer Ikea plans to invest RMB5. The China Upholstered Furniture Market is expected to reach USD 45. Feb 16, 2012 · In the 2010 financial year, Ikea China reported sales revenue of 4. IKEA Adaptation in China By analyzing the international marketing strategies of IKEA in China, a case study is being developed by the researcher. 3 billion yuan (US$772. Mar 5, 2020 · IKEA in China belongs t o IKEA Gr oup and opera tes as a joint v enture. 2 Despite this, IKEA continued to grapple with a number of challenges while doing business in the country. Discover affordable furniture and home furnishing inspiration for all sizes of wallets and homes. 39 billion in 2019), with online sales being the biggest driver. 5 BEUR portfolio). 1 billion in lowering prices for its customers. The company’s expansion efforts include notable entries into India in 2018 and significant performance in China, where sales reached $1. “The growth of the home furnishings market in China is particularly noticeable In financial year 2024 (FY24) IKEA sales amounted to EUR 45. I will first conduct a company analysis using porter’s 5 forces and SWOT frameworks. 98 million USD) over the next three years in professional home solutions, personalised services, and an omnichannel approach. QuanU Furniture, Red Apple Furniture, IKEA China, Kinwai Group and Oppein Home are the major companies operating in this market. Our goal is to make IKEA more affordable, accessible, and sustainable, especially for those with limited budgets. From that date on, I've avoided IKEA ever since. The world's largest furniture company's like-for-like sales rose by 4. S. Aug 13, 2018 · IKEA accelerated its expansion in China with a plan to open three stores every year for a total of 40 stores before 2020. Editor's Pick First in Shanghai 3. They’re a globally scaled, $50B annual revenue company with no direct competitors — yet have only ~5% market share. Also, never saw so many people NOT SHOPPING inside an IKEA just laying down in the beds and sofa like it was their own house and just enjoying A/C. Since 2016 (to FY22), IKEA has grown by 24. 9 billion yuan, an increase of some 20 percent from the previous year. Description Page No. invested into renewable energy projects in wind and solar power. 6 €41. The company attributed the decline primarily to its strategic decision to lower prices across its global markets, due to the economic downturn and a contracting home The IKEA revenue model is based on direct sales of home furnishings and accessories through its retail stores, online platform, and catalogues. Nov 26, 2024 · IKEA is an internationally known home furnishing retailer. Aug 30, 2023 · Ikea also intends to cut the prices of more than 300 product categories, mainly home storage and popular consumer items, in the fiscal year 2024, Ikea China said at a fiscal year launch event yesterday. Aug 20, 2014 · Peter Agnefjall, the retailer's chief executive officer, told China Daily in an earlier interview that Ikea expected revenue from China to more than double by 2020, based on the 6. 2016 IKEA Group Sustainability Report PDF IKEA China Sustainability Report FY16 IKEA China FY16 Sustainability Highlight Poster. After realising this, IKEA decided to target its consumer group of young middle-class professionals, who get relatively higher salaries, are better educated and have better understanding of western cultures of our range produced in China (IKEA, 2020). cn is a company that operates in the Furniture industry. 6% climate footprint reduction. Sep 13, 2023 · IKEA China has announced its “Growth+” strategy, committing to an investment of 6. , Ltd are the major companies operating in this market. This led to an increase in store visitation by more than 3% and online Oct 22, 2024 · For the period September 1, 2016, to August 10, 2017, IKEA China's sales revenue increased by 14% on a year-on-year basis, amounting to ¥ b 13. Did you know IKEA generated over $47 billion in revenue in 2022, with over 460 stores in 60+ countries? Jan 4, 2025 · A substantial commitment to international growth can be seen in IKEA’s remarkable annual revenue of $42 billion. 3 billion in FY19. In 2004, for instance, its China revenue jumped 40 per cent from the year before. IKEA Industry AB is a strategic IKEA manufacturer that produces IKEA home furnishing products and develops unique IKEA capabilities and capacities in relevant parts of the value chain (e. Related Stories Oct 12, 2023 · 12th October 2023 – (Shanghai) Despite signs of strain in the world’s second-largest economy, China remains a key growth market for budget furniture retailer IKEA, according to executives at Ingka Group, the largest owner of IKEA stores worldwide. Oct 10, 2024 · Ikea revenue falls after it lowered prices By Jordan Valinsky, CNN 2 minute read Published 9:31 AM EDT, Thu October 10, 2024 China Europe India Middle East United Kingdom US Politics Trump IKEA Santiago de Chile opened on 10 August, and South American expansion will continue with Colombia and Peru during the coming years. 1% rise in full-year sales to a record £28. 1 billion (EUR 47. Related Stories Ikea China investing $38m to expand offerings development speed of IKEA is seems too slow in China. IKEA’s success in China is a testament to the power of localization in global business. IKEA Industry produces approximately 10% of the total IKEA range, with its main focus on wood-based furniture. The Inter IKEA Group business year is the period from 1 September to 31 August. 3 percent year-on-year. 55 billion, it said. 2%, while achieving a 13. 0: A comprehensive guide Figure No. While globally 30 per cent of IKEA's range Oct 13, 2023 · China was for several years the fifth biggest market by revenue for Swedish Ingka Group, which runs most IKEA stores globally. In FY24 IKEA has substantially lowered prices across 63 markets, making IKEA more affordable for the many people. Oct 10, 2024 · Ikea’s focus last year was helping customers struggling with a high cost of living—even if that hurt its revenue. 3bn) – down from €47. 0% when adjusted for currency effects). Sales at the world’s largest furniture retailer this year fell 5% to $49B — its first revenue drop since 2020 — after it slashed prices on thousands of items by an average of 10%. The Swedish Design Giant, Unlike Other Retailers, Slashes Prices for the Chinese. Jump to comments section Print this page. cn amounted to US$37. 3 billion yuan ($772. IKEA has about 460 stores in 63 countries. While China’s ranking as a revenue market for Ingka Group has slipped from fifth to tenth The China Furniture Market is growing at a CAGR of 7% over the next 5 years. 98 billion). Jul 1, 2004 · IKEA Group, a franchisee of Inter IKEA Systems BV, entered China in 1998 when it opened its first store in Shanghai. But in China, IKEA is mainly located in Guangzhou, Shanghai and Beijing. The challenges it faced in China, however, were far bigger than the ones in the US. 1bn ($49. Behind the flat-packed furniture, there’s a world of political, social, and environmental factors that make up the real IKEA puzzle. 3. In total, 38 new IKEA sales locations opened around the world in FY22. 8 billion in revenue (FY23: EUR 44. Oct 12, 2023 · Store openings: FY23: 60 new IKEA locations FY22: 52 IKEA locations. Revenue of IKEA in Germany 2006-2024; Americans who own West Elm furniture 2018, by income; U. 6 per cent of global sales in its 2023 financial year, which ended Aug 31. 9 billion EUR mark in 2021. The new plan emphasises a long-term price reduction on over 300 products, with IKEA China Senior VP Francois Brenti highlighting that the […] Feb 11, 2025 · Revenue of IKEA in Germany 2006-2024; Topics IKEA Furniture market in the U. As part of its unique ownership structure, 85% of its net profit is reinvested back into Ingka Group, with the remaining 15% going to the Stichting INGKA Foundation to support the charitable activities of the IKEA IKEA had to make a number of changes to its marketing strategy in the US. Furniture industry in Europe Furniture e-commerce. May 15, 2016 · After the release of IKEA 2012 financial results, Mikeal Ohlsson, the CEO of IKEA Group, announced IKEA plans to further its expansion in China reaching a total of 40 stores in China by 2020. As the company opened more stores from Beijing to Shanghai, the company's revenue grew rapidly. , 2004). Total IKEA retail sales, including sales of services, amounted to EUR 41. 54 billion by 2030. 97% to reach USD 63. Ikea Hits Home in China. In 2022, the Swedish furniture brand also opened a pop-up store in Hong Kong focusing on environmentally friendly and sustainability-produced items as well as Inter IKEA Group also owns and operates one IKEA store in Delft, the Netherlands. Net profit is EUR 1. Sustainability: 4 BEUR (out of 6. IKEA’s annual revenue has seen constant growth over the past two decades. 7 percentage points lower than that in fiscal year 2017 and 10 percentage points less than that in 2016. The small store formats bring IKEA closer to where people live and work. By understanding and adapting to local preferences, the company has successfully established itself as a leading furniture retailer in China, with over 36 stores and a strong online presence, as per IKEA. 6 billion for the financial year 2024, a decrease of 5% compared to last year (EUR 41. franchisees) compared to EUR 41. In China, IKEA said that its move to pay Chinese suppliers in CNY has simplified negotiations and lowered IKEA Industry is a strategic IKEA manufacturer that produces IKEA home furnishing products and develops unique IKEA capabilities and capacities in relevant parts of the value chain (e. 4 billion Yuan, 10% of the total revenue, for IKEA China. IKEA in China. 9 Sep 27, 2024 · 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. IKEA. franchisee, generating over 89% of total IKEA Retail sales in FY22. Sep 13, 2016 · Ikea has reported a 7. 6 billion and Inter IKEA Group continues to progress in its efforts to make IKEA more affordable for the many people. released its 2020 Annual Summary, highlighting how the company continued to transform its business during the pandemic to become more accessible, convenient and sustainable for the many. 5 bln euros; Net profit jumps to 2. Its products appeal to Chinese consumers willing to spend a bit more for quality. 3 billion the equivalent of $41. ikea 宜家家居是来自瑞典的全球知名的家具和家居用品零售商。 访问宜家电商官网，获取9000多种产品的详细信息以及源源不断的家居灵感。 宜家家居官网-宜家电商-提供客厅，卧室，厨房，各类家居灵感和产品解决方案- IKEA Aug 29, 2013 · In fiscal 2012, IKEA China's revenue reached 6 billion yuan ($970 million) at its new and existing stores, up 23 percent year-on-year. All the work started from a child entrepreneur is now spreading and reached one million employees around the globe. This means locations in large cities or metropolitan areas and an omnichannel offering that meets customer needs and Western carmakers risk wipeout in China, warns Jeep owner Stellantis; Moët Hennessy’s crisis: dubious deals, soaring prices and hubris Ikea posts first drop in revenue since 2020 after Dec 18, 2024 · IKEA, primarily in developed economies with limited expansion into emerging ones (China being an example), is on the verge of a massive opportunity. Aug 28, 2024 · IKEA's Shibuya location has served as an incubator for new store ideas since opening in 2020. It employs 1000to4999 people and has 100MMto250M of revenue. IKEA Delft’s retail sales are also included in this line item. It prioritized more modular designs to fit smaller Chinese homes, a sharp May 28, 2024 · Ikea China doesn't perform as well. Compared to FY23, retail sales went down by 5. cn, IKEA’s pop-up store in the PRC. Oct 5, 2019 · Download this stock image: Consumers line to buy Swedish food at IKEA restaurant in Beijing, China, 5 October 2019. IKEA, with its sustainable practices, is well-welcomed in China. After this I will highlight the key issues of IKEA in China, from which I will analyse IKEA’s market entry into China. IKEA’s mainland China stores belong to the IKEA Group and operate as joint ventures. 可持续发展报告. The Philippines also became a new IKEA market, and the first IKEA stores in Estonia, Puerto Rico and Oman opened their doors. 37 billion in 2025 and grow at a CAGR of 6. 6bn in FY23. Each year, Inter IKEA Group reports progress against the IKEA People & Planet Positive Strategy from across the IKEA value chain and franchise system. The retailer will also offer free delivery and payment by installment, it added. It is noted that Guangzhou, Shanghai and Beijing have many high- end consumers and are considered to be important target markets (Cao et al. 6 billion (source: Inter IKEA Group). 3% (-4. 9 billion ($42 billion) in 2021 (exceeding pre-COVID levels at €41. In these areas, China is leap-frogging the rest of the world,” Angela explains. (IKEA Hong Kong and IKEA Taiwan are separate franchisees. Home improvement in the U. , IKEA of Sweden AB, IKEA Supply AG and IKEA Industry AB related businesses. Industry produces approximately 11% of the total IKEA range, with its main focus on wood based furniture. Oct 13, 2023 · China was for several years the fifth biggest market by revenue for Ingka Group, which runs most Ikea stores globally, but it has now slipped to tenth position, accounting for 3. Ikea China’s online business grew by over 70 percent in each of the fiscal years 2020 and 2021, and strong growth is expected for this fiscal year as many events are being held, Pawlak-Kuliga said. In FY17, IKEA Retail China’s revenue surged 14% to more than US$1. 3 billion yuan Oct 6, 2022 · At present, IKEA in China has its sights set on China’s growing furniture market. material and manufacturing). 8bn, driven by rapid growth in China. The firm has started to branch into livestreamed e-commerce. IKEA Group which includes the companies that develop and supply the IKEA product and food ranges, certain manufacturing and Inter IKEA Systems B. China's Ministry of Commerce said it recently did a survey that found more than 99 percent of foreign-funded firms in China intend to continue to invest and operate in the country. Revenue was up 15 percent in terms of comparable stores. A case study “is the detailed examination of a single example of a class of Sep 26, 2024 · This statistic depicts the leading five purchasing countries of IKEA products from 2012 to 2016. 8%) in FY23. amounted to US$42m in 2024. IKEA franchisees purchase products from Inter IKEA Group companies and pay a franchisee fee based on retail sales. 6% (7. 30, amounted to 4. The current Inter IKEA Group was established in 26 August 2016. 1, to meet ch Ikea to make its largest investment in China. 1 billion, with a 9. Oct 10, 2024 · IKEA is more than just hex keys and questionable meatballs. Sep 26, 2024 · Livat Shanghai is a key milestone as we celebrate 15 years in China, and we are excited to continue our journey, bringing fresh experiences to communities and visitors” says Cindy Andersen, Managing Director, Ingka Centres. On the other hand, China is already become to the biggest purchasing country which is about 20%. Oct 12, 2023 · China was for several years the fifth biggest market by revenue for Ingka Group, which runs most IKEA stores globally, but it has now slipped to tenth position, accounting for 3. Opened our first city stores in Sweden, the UK, Canada and India to bring the IKEA range closer to more people and performed 74 million services such as home delivery, product assembly and 2 days ago · In China, the Ingka Group, the largest Ikea retailer that represents of 90 percent of Ikea retail sales, runs 34 stores, two experience centers and eight Ingka Livat Shopping centers. Ikea said Mar 4, 2025 · Due to this solution, in 2018, the company’s revenue in China comprised $2. Today, Inter IKEA Group announces total IKEA retail sales1 for financial year 2023 (FY23)2 of EUR 47. 1 Foreign direct ct investment i in China (Source: UNCTAD, 2015 15) Foreign Direct Investmen ent 2013 2014 2015 FDI Inward Flow (million on USD) 123,911 128,500 00 135,610 FDI Stock (million USD) 956,793 1,085,29 ,293 1,220,903 Number of Greenfield Inve nvestments 1,249 1,054 876 FDI Inwards (in % of GFC FCF) 2. 2 bln euros; IKEA brand owner lowered prices by 15% on average; Franchisor signs deal to acquire stores in Baltics Aug 27, 2020 · Even though the world is going through its change, IKEA remains committed to the Chinese market, the vice president of IKEA China, Francois Brenti, told CGTN. May 8, 2025 · Ikea's fiscal report of 2018 showed that revenue in China was 14. Oct 14, 2021 · Inter IKEA Group shares IKEA facts and figures for financial year 2021 (FY21). 7 billion in FY22). Oct 11, 2024 · After some steep discounting last year, build-it-yourself-furniture icon Ikea may’ve found itself stuck between a Rocksjön and an Älskvärd place. (Photo by Nanami Sato) Nov 27, 2024 · Ingka Group achieved EUR 41. ) A new, redesigned Shanghai store opened in 2003, replacing the original outlet. Inter IKEA Holding B. Never saw so many people inside an IKEA store. The Philippines also became a new IKEA market, and the first IKEA stores in Estonia, Puerto Rico and Oman opened their doors for the first time. Interi Furniture, Qumei Furniture, IKEA China, Kinwai Group, China and Chengdu Sunhoo Industry Co. The latest addition was a small store in the centre of Copenhagen tailored to local needs, both in terms of better accessibility for the city’s many cyclists as Oct 11, 2024 · The Inter IKEA Group has reported a 5. The company said the investment will be used for digitalisation, expanding its footprint and operational development. Shop online or find a store near you. 4 | Inter IKEA Group Financial Summary FY22 The IKEA Retail development franchise system Inter IKEA Group works closely with IKEA franchisees to bring the IKEA retail experience closer to people wherever they live, work or socialise. Nov 5, 2024 · Attending the China International Import Expo for the seventh straight year, Swedish home furnishings and housewares retailer Ikea has made the expo and Chinese cultural elements the muse of their product development, Pontus Erntell, CEO of Ikea China, told China Daily in an exclusive interview. But the sales per region are only 5% in Asia and Australia. 3 million times. 2m in 2024. 3% when adjusted for currency impact) compared to FY22. IKEA of Sweden (IoS) in Almhult, Sweden, develops the IKEA range. franchisees. Sales for the IKEA Group totaled 31. V. [SONG YU/FOR CHINA DAILY] Ikea, the Swedish home furnishing and furniture retailer, said it plans to invest 273 million yuan ($38. High Brand Value and Strong Brand Equity As we mentioned earlier, IKEA is the largest furniture retailer in the world and enjoyed a brand value of $17. IKEA is a franchise business, with many companies operating under one IKEA brand. Beside Xi’an, Ingka will open yet another Livat meeting place with 350 shops and an IKEA store in Shanghai later this year. IKEA Shanghai Linkong complements the IKEA Shanghai Xuhui, Beicai, and Baoshan locations. 4 billion) in fiscal 2020, starting from Sept. 6 FY21 €44. Aug 25, 2022 · Ingka Group, the parent group of Swedish home furnishing giant Ikea, will invest 5. When entering China, IKEA adopted a joint venture method due to policy reasons. IKEA Industry is a strategic IKEA manufacturer that produces IKEA home furnishing products and develops unique IKEA capabilities and capacities in relevant parts of the value chain (e. are well-ahead of the next closest countries, China (37), France (36), and Spain (30), which round out the top five. 6 billion in 2019. Discover eCommerce insights, including sales development, shopping cart size, and many more. Aug 29, 2013 · In fiscal 2012, IKEA China's revenue reached 6 billion yuan ($970 million) at its new and existing stores, up 23 percent year-on-year. Below you can download annual reports, summaries and subsidiary lists published starting in financial year 2016 (FY16). This . Most Read Stories 1 Jul 5, 2016 · China is Ikea’s fastest-growing market, and sales in China last year reached $1. According to statistics, IKEA's revenue crossed the 41. By . Inter IKEA Group also owns and operates one IKEA store in Delft, the Netherlands. including wholesale sales to IKEA retailers, franchise fees and retail sales from the IKEA Delft store. Published September 26 2024. In this report I will be examining Ikea in the Chinese market. Up to this point, the Swedish-founded company has been resistant to going all in on online sales. Aug 23, 2019 · SHANGHAI -- Ikea is strengthening its Chinese operations by investing 10 billion yuan ($1. Mar 28, 2023 · IKEA also has a Take It Home policy, which will enable buyers to purchase and transport their items independently, allowing IKEA to avoid delivery costs. Ingka Group is the largest IKEA franchisee, generating 87. Oct 10, 2024 · Ingka Group today announced its share of IKEA retail sales of EUR 39. Ikea is grappling with waning interest in the Chinese market, where consumers prefer visiting the stores for the ambiance and the restaurant rather than for purchasing furniture. May 14, 2025 · Consumers browse products at an Ikea store in Beijing in August. China’s 30 years of Apr 18, 2024 · Since entering the Chinese market in 1998, IKEA China has served millions of customers. IKEA may be the most singular company we’ve ever studied on Acquired. Figure 1 Flag of Sweden Figure 1 Evolution of IKEA Logo Figure 1 Typical Shopper’s Path in an IKEA Store Figure 1 Types of Risk in International Trade Figures 2 Sleeping in IKEA Stores in China Figure 2 Sleeping in IKEA Stores in China Figure 2 Change in the Operations of IKEA in China to suit the market Figure Feb 12, 2025 · Annual revenue of the IKEA Group worldwide from 2001 to 2024 (in billion euros) Basic Statistic IKEA: sales share 2024, by region IKEA: sales share 2024, by region When I first moved to China, I went to IKEA to get some stuff for my new apartment. Oct 10, 2024 · Since entering China in 1998, IKEA has expanded aggressively and the country was for several years in its top five markets by revenue, but its relative weight has since fallen. Toyota Value Chain Analysis Apr 28, 2025 · Today, 12 different groups of companies have the right to own and operate IKEA sales channels under franchise agreements with Inter IKEA Systems B. 1 billion across thousands of products across all markets. venture serv ed as a good approach to tes t the market, under stand the local . In 1965 IKEA launched its flagship store, which was the largest working furniture service store of that time. Share. Figure (12): annual IKEA revenue from 2008 until 2018 (IKE A, 2020) and (Milne, 2019). They’re one of the largest retailers in the world — yet sell only their own products. Supply includes IKEA Supply AG, IKEA Industry AB, IKEA Components AB and related businesses. The company’s affordable pricing strategy, combined with its high-volume sales, ensures substantial revenue. About Inter IKEA Group Inter IKEA Group includes Inter IKEA Systems B. Over the years, IKEA opened 37 stores in China, and the only Oct 12, 2023 · In financial year 2023, IKEA sales amounted to EUR 47. Resize. 4-billion strong market, IKEA has focused on China as a major growth opportunity. 7 billion in FY23). 8 3. Inter IKEA Group includes the business operations of the IKEA Franchisor, Range, Supply and certain Industry activities. 5% compared to the previous year. In 2021, one opened in Kunming with a “delivery parcel” theme. - 2EP0JWW from Alamy's library of millions of high resolution stock photos, illustrations and vectors. 9% to 26. 9 billion Euros for the financial year 2015. 3 billion), a decrease of 5. 9 3 days ago · 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. 9 million) in China in the fiscal year 2023, the company said in a press conference on Wednesday. 8% from FY20. The online revenue of ikea. Jul 13, 2016 · Ikea’s China sales for the fiscal year ended in September totaled $1. Still, in 2017, the Chinese market presented IKEA with challenges, such as cheap imitations from competitors and increasing interest in e-commerce by consumers. However, although IKEA has gained a strong position in the Chinese market the threats to overcome are several. 43 billion in 2022. As IKEA franchisees’ retail sales increased in FY21, Inter IKEA Group wholesale sales went up as well. 55 billion. In 2024, revenue amounted to over 45 billion euros. – the worldwide IKEA franchisor. IKEA IN CHINA EMMA FENTON 10314305 BCHN Introduction. 2 million cubic metres of IKEA products from Inter IKEA Group in FY19, compared to 38. The core business is IKEA Retail, which consists of almost 400 IKEA stores including city stores across 31 markets, and counting. 6 billion (EUR 0. Nov 8, 2024 · Inter IKEA revenues down 8. 2 billion (US$1. Some 31 million customers visited Ikea stores in China in Apr 20, 2013 · If we look at the financial results of Ikea to analyze the performance of Ikea China, it can be easily found out that Ikea is driving on a speed train and is in a burgeoning market. 3 billion RMB (863. Industry produces approximately 11% of the total IKEA range, with its main These reports give detailed information about the IKEA Group’s work with social and environmental responsibility and shows how far we have come towards achieving our goals. Inter IKEA Group’s total tax contribution amounted to EUR 2,140 million and mainly consisted of payments of corporate income tax, custom duties, VAT and payroll taxes. 6% of global sales in the company’s 2023 financial year. 3% growth year-on-year (IKEA, 2018). The company has prioritized lowering the prices to customers by investing more than EUR 2. In 2016, China continued to be the leading purchasing country of IKEA products at 26 percent. 98 billion. Annual report FY21 Page 4 of 55 IKEA Industry is a st rategic IKEA manufacturer that produces IKEA home furnishing products and develops unique IKEA capabilities and capacities in relevant parts of the value chain (e. Find related and similar companies as well as employees by title and much more. The country is now only the tenth biggest, accounting for 3. Last year, we lowered prices across all markets and made progress on our sustainability agenda. 8%. What is the problem IKEA have in China? What should IKEA change in China? View IKEA (www. 9 billion, an increase of 5. However, the growth rate was 4. 4 million cubic metres in FY18. Jan 12, 2024 · The Success of IKEA’s Localization Strategy in China. Jun 9, 2024 · For the period September 1, 2016, to August 10, 2017, IKEA China’s sales revenue increased by 14% on a year-on-year basis, amounting to ¥ b 13. - 2EP0JWX from Alamy's library of millions of high resolution stock photos, illustrations and vectors. Later, IKEA currently operates almost exclusively as a wholly foreign-owned enterprise in China. Feb 17, 2023 · More than 680 million customers to our IKEA locations and IKEA. com saw more than 3. Oct 12, 2023 · China is still a key growth market for budget furniture retailer IKEA despite the world's second-largest economy showing signs of strain, executives at the biggest IKEA store owner said on In FY24, the Inter IKEA Group tax charge was EUR 466 million – equal to 17. 9 million) in China in the next fiscal year, starting next month, despite the instability of the market due to Covid-19 restrictions. 9 adaptation taken up by IKEA in China to be successful and retain its competitive position in China. 3 million) in China in the fiscal year to August 2025, and exploits post-COVID-19 consumption trends like more rational buying and a growing preference for cost-effective products. Ingka Group is made up of three businesses, working closely together: IKEA Retail, Ingka Centres and Ingka Investments. Industry produces approximately 11% of the total IKEA range, with its main Oct 13, 2022 · IKEA Santiago de Chile opened on 10 August, and South American expansion will continue with Colombia and Peru during the coming years. Those figures have been growing since 2015, with an increasing number of IKEA’s local stores, as the retailer expands its business in the Chinese market since its entry in 1998. Table 3. IKEA presently only generates around 6% of sales via ecommerce. 8 billion visits and the IKEA app was downloaded 20. Based on table 3 above, we can derive IKEA’s cumulative store openings in china graphically as follows; As of today, IKEA already has 16 stores in 13 cities in china with plans to expand The Five Forces That Shape Industry Competition The Five Forces That Shape Industry Competition Rivalry within the industry Sep 1, 2023 · On August 29-30, 2023, IKEA China held a media conference for the new fiscal year 2024 and unveiled its growth strategy "Growth+" for the next three years. ikea. Over 30% consumers come to IKEA only for food, while they generate a revenue 1. Last year (by August of 2012), Ikea China generated over 540 billion RMB of sales which is a 21% increase in sales. This positive result was achieved Apr 17, 2025 · Top furniture and homeware online stores globally 2023; Top furniture and homeware online stores in Greater China in 2023; Leading websites in the homeware sector in the U. However, with those proportions predicted to rise to around 25 to 30% soon, the time has come for the Swedish furniture giant to start taking eTail seriously. The potential for development into countries such as Brazil, Mexico, Indonesia, and Malaysia may significantly boost IKEA’s global presence and generate future revenue growth by capitalizing on IKEA's international expansion is mainly through the establishment of wholly-owned companies, and some of them enter new markets through franchising. Jul 6, 2013 · In 2004, for instance, its China revenue jumped 40 per cent from the year before. FY23 IKEA retail sales Services to customers Products sold online Products sold through stores 3% 23% 74% IKEA retail sales in billion EUR FY23 FY22 €47. Ikea China will recruit over 3,000 new employees in the Ingka Group, which IKEA UK is a part of, is the largest IKEA franchisee, generating over 89% of total IKEA Retail sales in FY22. Total IKEA sales for FY24 reached EUR 45. Just for intellectual property the group invest 40% of its revenue in China. In 2018, IKEA China's revenue reached 14 billion yuan, with about 10% contributed by its restaurant, a proportion much higher than the global average. Aug 31, 2022 · The company clocked a record high sale of €41. And the Chinese digital marketplace knocked out a year-on-year increase of 74%. IKEA franchisees purchased more than 39. Annual report FY22 Page 4 of 56 IKEA Industry is a strategic IKEA manufacturer that produces IKEA home furnishing products and develops unique IKEA capabilities and capacities in relevant parts of the value chain (e. 8% of total IKEA Retail sales in FY24. 0 FDI Stock (in Oct 13, 2023 · China is still a key growth market for budget furniture retailer Ikea despite the world’s second-largest economy showing signs of strain, executives at the biggest Ikea store owner said on Thursday. Welcome to IKEA. In 2022, IKEA reported revenue of €44. But there was a problem - its local stores were not profitable. Inter IKEA Systems B. IKEA also exists in the digital world . The company has been in China since 1998. 1 billion to achieve this, coupled with several rounds of Sep 26, 2024 · Ikea will add more smaller outlets across China, as the furniture giant known for sprawling big-box stores experiments with more accessible retail formats amid an economic slowdown and surging Sep 26, 2024 · Ikea says confidence returning in China after $1bn investment on whatsapp (opens in a new window) Save Thomas Hale in Shanghai. Part of Ikea's overall goal is to grow with its furnishing suppliers so as to serve its global market better, said Jesper Brodin, chief executive officer of Ingka Source; Hofstede, 2014 the market is still growing or at saturation point. Mei Fong. However, the global transport crisis challenged us to keep IKEA stores well-supplied throughout Nov 22, 2018 · Retailers must take an omnichannel approach because everything is integrated and customer-centralised. In August, the furniture brand announced a new investment of 5. This includes sales of IKEA products, food and services to customers. assigns IKEA Supply AG to source, sell and distribute IKEA products to IKEA franchisees. 1 billion), a growth of 9. product shipment value of upholstered furniture 2002-2010; Nov 8, 2023 · Photo source: China. IKEA IN CHINA EMMA FENTON 10314305 BCHN30070 Introduction In this report I will be examining Ikea in the Chinese market. The eCommerce activity of IKEA (China) Investment Co. is the franchisor, responsible for continuously developing the IKEA Concept and ensuring its implementation in new and existing markets. Pop-up stores play a key role in IKEA’s strategy in China. Sep 27, 2024 · 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. Jan 13, 2024 · Both Germany and the U. 1 billion and Inter IKEA Group increased its efforts to make IKEA more affordable for the many people. The given solution became a result of the in-depth analysis of the market, internal and external factors that might impact the company, risks, and opportunities. IKEA follow two characteristics “Economic of scale” producing vast production and reduce single item cost and “Economic of scope” reducing cost by same marketing activities and distribution channel. IKEA Retail IKEA Retail is our core business that operates 379 IKEA stores including city stores, as well as 103 IKEA shops and IKEA planning studios in 31 But when IKEA opened its first store in Beijing in 1999, IKEA products’ high prices scared aways many price-sensitive consumers in China. cn Profile and History. On weekends, Ikea stores in China are routinely packed with customers, some of whom even nap on the . Like many other brands seeking access to the 1. In the case of IKEA, IKEA sells high quality and low price furniture products abroad. The majority of IKEA products (approximately 90%) is sourced from external suppliers across the globe. 6 billion yuan ($2. Ingka now operates 35 IKEA stores, two IKEA shops and 9 Livat meeting places in the country. Sep 11, 2019 · Ikea's fiscal report of 2018 showed that revenue in China was 14. ysauh lyh lshdid ktlam yjkhvs fkaq fdmso fynnw elopw hkgtbg