IKEA's increased investment in automation at its Chinese suppliers shows the potential for sales in the home furnishings market.
Global furnishings and housewares giant IKEA is investing in automation, robotics and other technologies to help lower operational costs and continuously reduce product prices, while adding more convenience-centric stores in China's urban centers, said the Swedish company.
During a visit to China this month, Tolga Oncu, Ingka Retail Manager of Ingka Group — which brings IKEA retail operations to more than 30 markets — stressed the importance of siding with the many amid global economic challenges by offering affordable products and solutions.
In February, the company announced it would invest more than 100 million yuan ($13.9 million) in more than 500 products on offer in China this fiscal year. By offering more lower-priced products, IKEA is expected to inject new vitality into the local furnishings and housewares market and showcase its long-term commitment in China, the company said.
IKEA, as a global leader in home furnishing retailing, makes every strategic decision with great deliberation. When we delve into the reasons why IKEA invests money in the production of its products, it is easy to see that the deeper meaning behind it is centred on two core objectives: cost and productivity.
Firstly, cost has always been an important consideration for IKEA. By investing in the production of its own products, IKEA is able to better control every step of the process, from raw material procurement to manufacturing, to ensure the effective management of costs. This vertically integrated production model not only reduces intermediate links and unnecessary costs, but also enables IKEA to respond more flexibly to changes in the market and quickly adjust product pricing to attract consumers with more competitive prices.
Secondly, improving production efficiency is another major objective of IKEA's continuous investment in product production. Through the introduction of advanced production equipment and technology, IKEA continues to optimise production processes and increase production efficiency. This not only meets the growing global consumer demand and ensures a stable supply of products, but also reduces waste in the production process and further lowers costs. At the same time, high production efficiency also means faster product updates, enabling IKEA to keep up with market trends and launch new products that meet consumer demand.
To sum up, IKEA invests in product production both to reduce costs and enhance competitiveness, and to improve production efficiency to meet market demand. This strategic decision not only reflects IKEA's keen insight into market changes, but also demonstrates its strong determination to pursue the path of sustainable development. In the future, as technology continues to advance and the market continues to change, we expect IKEA to continue to leverage its innovative strengths to bring consumers more high-quality, affordable home furnishing products.
From the current investment and layout of the industry leader Ikea, it can be seen that the demand for global household goods remains significant. However, the cost must be increasingly optimized. FOSHAN EVER RISING has always been committed to introducing automated production, but we differ from Ikea in some aspects. We focus on designing and developing products, primarily adopting European concise designs(like our storage series:Powder Coated Wire Fruit Basket For Kitchen/Knock Down 2 And 3 Tier Wire Fruit And Vegetable Basket). We introduce various irregular lines to create different designs, incorporating numerous unconventional design elements. Therefore, some of our products still require manual process. This approach distinguishes us from the standardized appearance and style of automated production, while maintaining the practicality of our products, achieving the best of both worlds.
We invite everyone to visit our website to browse and purchase various newly designed products. From April 23rd to April 27th, we will bring our new designs to the Canton Fair exhibition(1.2K35,36-J13,14), and we warmly welcome everyone to come and select the products that appeal to you.