(Yicai) March 19 -- Ikea plans a network of smaller outlets in Chinese city centers to better reach urban shoppers, The Paper reported, citing the retail operations manager at Ingka Group, the Swedish furniture giant’s parent company.

Ikea China has already been successful online, Tolga Öncü said, according to the report published yesterday. China far surpasses other markets for digital infrastructure and technology, he said, adding that its online business environment is more advanced and competition is fiercer.

Last August, Ikea said it would invest CNY6.3 billion (USD875 million) in the Chinese market over the next three years to build infrastructure as well as optimize and integrate existing assets. It will also provide free delivery services to local consumers and allow payment by installments.

The Chinese market is the most mature for digital infrastructure, with new trends in retail more apparent and advanced, Öncü said. Ikea sees the future of retail in China and has also learned a lot from this market, he said, adding that the company will pass the experience on to other markets around the world, he said.

Ikea has been working hard to lower product prices for decades and will continue to do so in the future, Öncü said. According to the report, Ikea plans to continue its price investment in global markets in the fiscal year 2024 ending Aug. 31 to boost its low-price strategy by lowering raw materials and operating costs.

Ikea China has already announced plans to cut the prices of more than 300 product categories, mainly home storage and popular consumer items, in this fiscal year. Ikea then said it will invest CNY100 million (USD13.9 million) to expand the scope of its price investment to include over 550 types of products.

Ikea China has so far discounted the cost of more than 400 product categories in the fiscal 2024.

Editor: Martin Kadiev