Ikea planning to attract more young buyers throughout China

Ikea is working to connect better with young consumers in China by becoming nimbler and more digitalized. The Swedish company that sells modern Scandinavian-design ready-to-assemble furniture, kitchen appliances and home accessories has thrived for more than two decades in China on its business model that focused on large brick-and-mortar shopping centers. People paid about 100 million visits per year to the company's Chinese stores.

Ikea's fiscal report of 2018 showed that revenue in China was 14.6 billion yuan ($2.1 billion), a growth of 9.3 percent year-on-year. However, the growth rate was 4.7 percentage points lower than that in fiscal year 2017 and 10 percentage points less than that in 2016.

Ikea China will make its largest-ever yearly investment - 10 billion yuan - in fiscal year 2020, with more to come in the next two years, aiming to attract younger people in first-tier and smaller cities to its physical stores and digital sites, according to top executives of the company.