(Yicai) Aug. 30 -- The Chinese branch of Swedish furniture giant Ikea plans to invest CNY273 million in fiscal year 2025 to bring in more than 500 low-price products.

Most of the new products will be in the sleep-related categories, such as mattresses, bed frames, and bedroom textiles and storage to allow consumers to enjoy more affordable Ikea products and services, The Paper reported yesterday, citing Song Ying’ai, deputy chief executive officer of Ikea China, at the company’s fiscal year 2025 kick-off meeting held on Aug. 28.

“Rational consumption and the pursuit of cost-effectiveness were the major consumption trends in fiscal year 2024,” Song said recently.

Ikea China introduced a low-price strategy by cutting raw materials and operation costs last fiscal year. It said it would invest CNY100 million to add more low-priced items and trim the prices of more than 300 products.

Foods and drinks were more cost-effective in the fiscal year ended July 31, with sales of the CNY1 (14 US cents) ice cream and classic breakfast soaring 29 percent and 28 percent, respectively, from the previous year, according to Ikea China’s CEO Li Lei.

Ikea China’s low-priced and ultra-low-priced products account for up to 50 percent of the total now, Song noted.

The number of visitors to Ikea China’s brick-and-mortar stores rose 12 percent in fiscal year 2024 from the year before, Li added. 

Ikea China will strive to explore new and small business patterns in sales channels, continue to test new and small store models in Shenzhen and Beijing, and focus on designing order centers and small offline outlets to get closer to consumers and enter communities, Vice President Liu Rui said.

Editor: Futura Costaglione