Multinational giants are unveiling strategies to boost investment in China despite the fact that global economic growth, including China's, is under downward pressure.
IKEA China, a Chinese subsidiary of Swedish furniture retailer IKEA, hosted a press conference in Beijing on Thursday, and announced its "Future+" strategy to promote its development over the next three years.
Anna Pawlak-Kuliga, CEO of IKEA China, said at the conference that, after over 20 years, IKEA will continue to explore the Chinese market with its biggest-ever yearly investment of 10 billion yuan ($1.4 billion) in fiscal year 2020, and increase investment in the two years following.
IKEA has been paying close attention to development dynamics in China while adjusting its development strategy accordingly. Amid continuous changes in today's market environment, IKEA remains confident in the economic development and business opportunities in the Chinese market, Pawlak-Kuliga noted.
"The home furnishings market in China is now in a phase of stable growth. In addition, urbanization, digitalization and people's increasing disposable income is changing the way how people live and consume. That is why we have a full confidence in the Chinese market," the CEO said.
Given its new strategy, IKEA will upgrade existing stores and accelerate its expansion in China by opening four new stores in the next four months, and by expanding the coverage of e-commerce to make IKEA's products accessible for more Chinese consumers, according to a statement the company sent to the Global Times.
China, thus far, is the only market other than Sweden that has a comprehensive IKEA value chain. "With the industrial upgrading of China, IKEA has expanded its range of procurement in China, and the common application of high technology and large-scale production also allow its Chinese suppliers to get ahead of that of other countries," read a note sent to the Global Times by Inter IKEA, one of the Swedish firm's China units, on Friday.
Even though the economic growth of the world is under downward pressure brought about by escalating protectionism and unilateralism, China has been unswervingly upholding its opening-up policy.
According to the People's Daily in July, US retail giant Wal-Mart made a total investment of more that 700 million yuan into a customized fresh food distribution center in South China's Guangdong Province.
Wal-Mart will invest 8 billion yuan in the next 10 years to build or upgrade logistics distribution centers in China, said the report, citing Ryan McDaniel, an executive of Wal-Mart China.
Tesla's electric car Gigafactory in Shanghai also received its first comprehensive acceptance certificate on Monday, and is expected to kick off production at the end of the year.
The latest data from China's Ministry of Commerce revealed that foreign investment in China jumped 7.2 percent from last year, reaching 478.33 billion yuan for the first half of 2019.
IKEA China, a Chinese subsidiary of Swedish furniture retailer IKEA, hosted a press conference in Beijing on Thursday, and announced its "Future+" strategy to promote its development over the next three years.
Anna Pawlak-Kuliga, CEO of IKEA China, said at the conference that, after over 20 years, IKEA will continue to explore the Chinese market with its biggest-ever yearly investment of 10 billion yuan ($1.4 billion) in fiscal year 2020, and increase investment in the two years following.
IKEA has been paying close attention to development dynamics in China while adjusting its development strategy accordingly. Amid continuous changes in today's market environment, IKEA remains confident in the economic development and business opportunities in the Chinese market, Pawlak-Kuliga noted.
"The home furnishings market in China is now in a phase of stable growth. In addition, urbanization, digitalization and people's increasing disposable income is changing the way how people live and consume. That is why we have a full confidence in the Chinese market," the CEO said.
Given its new strategy, IKEA will upgrade existing stores and accelerate its expansion in China by opening four new stores in the next four months, and by expanding the coverage of e-commerce to make IKEA's products accessible for more Chinese consumers, according to a statement the company sent to the Global Times.
China, thus far, is the only market other than Sweden that has a comprehensive IKEA value chain. "With the industrial upgrading of China, IKEA has expanded its range of procurement in China, and the common application of high technology and large-scale production also allow its Chinese suppliers to get ahead of that of other countries," read a note sent to the Global Times by Inter IKEA, one of the Swedish firm's China units, on Friday.
Even though the economic growth of the world is under downward pressure brought about by escalating protectionism and unilateralism, China has been unswervingly upholding its opening-up policy.
According to the People's Daily in July, US retail giant Wal-Mart made a total investment of more that 700 million yuan into a customized fresh food distribution center in South China's Guangdong Province.
Wal-Mart will invest 8 billion yuan in the next 10 years to build or upgrade logistics distribution centers in China, said the report, citing Ryan McDaniel, an executive of Wal-Mart China.
Tesla's electric car Gigafactory in Shanghai also received its first comprehensive acceptance certificate on Monday, and is expected to kick off production at the end of the year.
The latest data from China's Ministry of Commerce revealed that foreign investment in China jumped 7.2 percent from last year, reaching 478.33 billion yuan for the first half of 2019.
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