UNITED STATES, WASHINGTON (VOP TODAY NEWS) — Swedish furniture giant IKEA said on Friday it would invest 10 billion yuan (1.3 billion euros) in China, putting its confidence in the potential of this major market despite the recent slowdown in the Chinese economy.
A spokeswoman for the company in China told AFP that “IKEA will continue to explore the prospects of the Chinese market and make the largest annual investment in the history of China, ‘for the period between September 2019 to August 2020.
IKEA plans to develop e-commerce and open six new stores in the Chinese market, which ranks fifth for the company in terms of sales.
“China’s home appliance market is currently experiencing stable growth,” the company said, stressing that urbanization, the digital age and increasing returns are contributing to “changing lifestyle and consumption.”
The Chinese economy is slowing down in the second quarter of this year, growing 6.2 percent, the lowest in at least 27 years.
At the same time, the United States has increased its tariffs on Chinese goods in an attempt by the US administration to reduce the US trade deficit with China, which Washington accuses of unfair practices against foreign companies.
“We have confidence in the Chinese market. The Chinese economy is growing at a sustainable pace,” the spokeswoman said.
In 2018, IKEA’s worldwide revenues totaled 38.8 billion euros, up 1.3 percent from the previous year.This is due to opening stores in new markets such as India and adopting a better online strategy.
The number of users of the company’s website increased by 8.7 percent and the number of visitors to the site 2.5 billion.
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