On October 26, in Shanghai, Peter Wisbeck, the trade manager for Greater China at IKEA, shared some exciting updates 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 that share within the next six years. This means that by 2020, half of the products sold worldwide could be made or sourced in China.
As part of its expansion strategy, IKEA has been opening three new stores in China each year, and with the official launch of its e-commerce platform in the first half of 2016, the company is ramping up hiring. Each year, IKEA plans to add more than 2,000 new employees across the country, reflecting its commitment to the Chinese market.
Peter Wisbeck emphasized that China is now a key player in almost every aspect of IKEA’s operations. “From retail to design, procurement, and logistics, almost all functions of the entire supply chain are present in China,†he said. “Except for the headquarters in Sweden, China is where IKEA has the most comprehensive set of operations.â€
After 15 years of operating in China, IKEA now employs over 7,000 people across the country. With the ongoing expansion—adding at least three new stores annually—the company is continuously expanding its internal departments. More than 100 different functional areas, including product design, procurement, production, and logistics, require an additional 2,000 hires each year to support this growth.
Huo Yibo, general manager of logistics services at IKEA Asia Pacific, also spoke about the company’s increased investment in logistics infrastructure following the launch of its e-commerce platform in China. He mentioned that IKEA will significantly boost its investments in both hardware and software for logistics, with future funding in the Chinese logistics sector expected to reach hundreds of millions of euros.
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