During a recent visit to Shanghai on October 26, Peter Wisbeck, the Trade Manager for Greater China at IKEA, shared some exciting developments about the company’s growing reliance on Chinese suppliers. He revealed that currently, 23% of IKEA’s global merchandise is sourced from China, and the company aims to double this percentage within the next six years. This ambitious goal suggests that by 2020, nearly half of all products sold by IKEA around the world could come from China.
In addition to expanding its sourcing strategy, IKEA is also accelerating its growth in the Chinese market. With an average of three new stores opening each year, and the official launch of its e-commerce platform in early 2016, the company plans to hire over 2,000 employees annually in China. This reflects not only the scale of IKEA’s operations but also its long-term commitment to the region.
“From retail to design, procurement, and logistics, almost every function across IKEA’s entire supply chain is present in China,†said Wisbeck. “Except for the headquarters in Sweden, China has become one of the most comprehensive centers for IKEA operations.â€
Having operated in China for over 15 years, IKEA now employs more than 7,000 people across the country. However, with the continued expansion—opening three new stores per year and investing heavily in digital transformation—the company is looking to add more than 2,000 new roles each year across various departments, including product design, procurement, production, and logistics.
Huo Yibo, General Manager of Logistics Services at IKEA Asia Pacific, highlighted that with the launch of the e-commerce platform in China, the company will significantly increase its investment in logistics infrastructure. This includes both hardware and software upgrades, with future investments in the logistics sector expected to reach hundreds of millions of euros.
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