IKEA invests 10m yuan for localization and sustainable growth in Chongqing

IKEA Chongqing store has completed a renovation project worth nearly 10 million yuan ($1.41 million), marking another milestone in the Swedish retailer's expansion and localization efforts in western China. The project not only enhances the shopping environment but also underscores IKEA's long-term confidence in the Chongqing market.

Inspired by local lifestyle, the renovated store features showrooms named after landmarks of the city. Each space is based on real apartment layouts, integrating residents' living habits and home styles.

"We studied the structure and habits of Chongqing households and combined IKEA's product solutions with their daily needs," said Liu Yi, interior design manager at IKEA Chongqing. "By using local place names and dialects, we aim to create a sense of belonging that makes customers feel as if they've walked into their own homes."

IKEA Chongqing store in Liangjiang New Area. [Photo by Wang Yantong]

The renovation also reflects changing consumer priorities with 68 redesigned showrooms featuring bedrooms, kitchens, living rooms, and dining areas. Improved sleep quality, better kitchen spaces, optimized home organization, and enhanced comfort have become top priorities for local shoppers, said Wan Qiu, Sales Manager at IKEA Chongqing. Over the past year, mattresses and bedding sales rose 25 percent, kitchen cabinet sales 20 percent, storage products 15 percent, and electric sofas 10 percent, respectively. 

The growth, reflecting increased demand for higher living standards, is tied to IKEA's involvement in Chongqing's home and kitchen upgrade subsidy program. The initiative is part of China's national trade-in policy introduced in 2024 to subsidize the replacement of outdated items with more advanced, green options.

As one of the first enterprises to join, IKEA combined government subsidies with its own discounts to offer extra savings for shoppers. Dedicated checkout counters were introduced to streamline purchases. According to the company, this initiative resulted in a nearly 10 percent year-on-year increase in store visits and significant sales growth. 

"The subsidy program supports green consumption and aligns perfectly with IKEA's vision of creating a better everyday life for many people," said Eric Kong, Business Leader at IKEA Chongqing. "It's both a strong business move and a strategic effort to help residents improve their quality of life through sustainable choices."

The subsidy program, which covers basic renovation materials as well as smart-home and elderly-friendly products, addresses citizens' growing demand for safer, more comfortable, and more convenient living spaces, Kong added. 

IKEA is planning additional investments in the city, including a project to revamp its exterior facade, according to Operations Manager Wang Hao. These initiatives, with investments totaling around 10 million yuan, demonstrate IKEA's confidence in the market. 

"Localization has been a key takeaway from our operations in Chongqing," Wang added. "For international companies entering western China or other high-potential regions, deeply understanding local markets, aligning with community needs, and leveraging policy support are essential to achieving sustainable growth."