As a home market in China with great potential, it is attracting the attention of many foreign companies and has entered the gold rush. On the 21st, the first IKEA project in the Northwest region started construction in Xi'an, and is expected to officially open in August 2015.
The Swedish IKEA Group is the world's largest home furnishing retailer and one of the â€œ50 Most Valuable Brands in the Worldâ€ with a brand value of over US$10 billion. As of August 2013, IKEA Group has opened 14 IKEA stores in 11 cities including Beijing, Shanghai and Tianjin.
Jon, the president of IKEA China Investment, said at the groundbreaking ceremony that Xi'an is the central city of the five northwestern provinces with convenient transportation and strong commercial radiation capabilities. IKEA is very optimistic about Xi'an's market.
He believes that based on the rapid economic development of Xi'an and the improvement of the local consumer market, IKEA will surely meet the needs of customers and create considerable tax revenue for local governments.
It is understood that China is not only the product sales market that IKEA has been paying attention to, but also the most important product procurement market of IKEA Group. As of 2013, IKEA Group's products in China have accounted for 23% of its global purchases, and China has become IKEA's largest product sourcing country.
Kang Jun, director of the Xidong New Town Management Committee of Xixian New Area, said that the construction of the Swedish IKEA project will become an important business card for Xi'an to build an international metropolis, and will also lead the Xi'an and Xixian New District consumer markets. With the action, it is of great significance to the consumer market of the surrounding provinces.
Some experts believe that since the financial crisis, the European and American furniture market has been shrinking. With the rapid development of China's economy, it has become an inevitable trend for foreign home manufacturers to enter the mainland market.
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