Industry News

BEIJING, May 4 (Xinhua) -- China is a "very exciting market," said Pontus Erntell, CEO, president and chief sustainability officer of IKEA China, noting that the country is at the forefront of retailing and many other sectors.

"China is a strategic market for us in many different dimensions. It is important from a retail perspective and from a full value-chain perspective, and when it comes to development," Erntell said in an exclusive interview with Xinhua after IKEA opened its first small-format store in eastern Beijing on April 30.

The new store covers 1,500 square meters, far smaller than the brand's typical large-format brick-and-mortar warehouse-style outlets. It has around 20 display areas that mainly target young couples and families with kids.

The opening reflects IKEA's broader shift from large-scale expansion toward more precise market penetration in response to changing consumer trends. The smaller store complements IKEA's larger outlets by creating additional customer touchpoints in a more community-focused approach, aimed at meeting diverse needs and improving accessibility.

Entering the Chinese mainland market in 1998, the global home furnishings giant now has a full value chain in China, operates its own online sales platform, and runs stores on e-commerce platforms such as JD.com and Alibaba Group.

Having led IKEA China for nearly four years, Erntell said it has been an exciting period, as Chinese consumers are demanding and constantly seeking new experiences.

Chinese consumers are looking for products that offer both affordable prices and good quality, along with functionality and sustainability, which aligns closely with IKEA's offering, he said.

Erntell also praised China's innovation capabilities, calling the country a market for innovation and development.

In response to China's innovation momentum, the company announced during the 7th China International Import Expo the launch of the first global retail development center for Ingka Group, IKEA's largest franchisee, aimed at creating more customer-oriented and innovative solutions for the Chinese market and beyond.

"Products and solutions have been developed for the Chinese market and consumers, and have then been scaled to other parts of the world," Erntell said.

He said IKEA remains confident about the opportunities in China and is adjusting its strategy to deepen its long-term presence in the market.

"We are continuously adapting to set ourselves up for the long-term presence here in China, to grow and develop together with the Chinese market," he said.