IKEA in China: From Furniture Store to Lifestyle Destination

By Qamer Javed Dec6,2024

When IKEA entered the Chinese market in 1998, its mission was to bring affordable, well-designed furniture to Chinese consumers. Over the years, the Swedish retailer has grown from being a furniture store to becoming somewhat different of a cultural phenomenon. Today, IKEA is a lifestyle destination, particularly for the younger generation. Many Chinese youths visit IKEA not necessarily to shop but to stroll, socialize, and enjoy the unique experience it offers. If you go on school trips to China, or, if you are a parent looking for Chinese classes for kids, you could actually come here and enjoy some of IKEA’s special features together with Chinese vocabulary! 

IKEA’s Entry into China: Challenges and Success 

When IKEA opened its first store in Shanghai in 1998, it faced significant challenges. Chinese consumers were unfamiliar with the brand’s DIY concept, where customers assemble furniture themselves. Additionally, IKEA’s minimalist Scandinavian designs initially clashed with the traditional Chinese preference for ornate and durable furniture. Another hurdle was pricing—despite being affordable in Europe, IKEA’s products were considered premium in China at the time due to higher import costs. 

To succeed, IKEA made several strategic adjustments: 

• Localization: IKEA introduced smaller furniture items tailored to the compact living spaces common in Chinese cities. It also adjusted its products to include designs that appealed to local tastes, such as wardrobes and storage solutions for small apartments. 

• Pricing Strategy: IKEA moved its production to China, reducing costs and making its products more competitive. 

• Marketing: IKEA marketed itself as an aspirational brand, using its iconic showrooms to demonstrate how a modern, cozy, and organized home could look, resonating with the aspirations of China’s burgeoning middle class. 

As urbanization boomed and incomes rose, IKEA expanded rapidly. By 2024, it operates over 40 stores across major Chinese cities, becoming a household name. 

How IKEA Became another Type of Destination 

For many Chinese, IKEA has transcended its role as a furniture retailer. Its stores have become popular hangout spots, especially among the younger generation. Here’s how IKEA has evolved into a cultural and social hub: 

  1. A Free “Mini-Adventure”

IKEA’s sprawling stores, with their maze-like layouts and beautifully designed showrooms, offer visitors an experience akin to a day out. Many Chinese youths view a trip to IKEA as a leisurely excursion, where they can explore well-decorated spaces, imagine their dream homes, and take photos for social media. 

• Showrooms as Photo Spots: The showrooms are a favorite backdrop for social media-savvy youth. Many young people use these spaces to stage photos that depict an idealized lifestyle. 

• Relaxation and Entertainment: Some visitors lounge on sofas, beds, and chairs as if in their own homes. This has led to a running joke that IKEA doubles as a “free public living room.” 

  1. Food and Cafeteria Culture

IKEA’s cafeteria has become a key attraction in China. The affordable, Western-style menu offers dishes such as Swedish meatballs, salmon, and desserts that appeal to adventurous eaters. For many young Chinese, the cafeteria is the highlight of a visit to IKEA. 

• Affordable Western Cuisine: IKEA’s food is considered exotic yet accessible, making it a popular spot for casual dining. 

• Study and Socializing Spot: Some young people treat the cafeteria as a quiet place to study or chat with friends, spending hours sipping coffee or eating snacks. 

  1. Shopping

While not everyone buys furniture, many visitors make smaller purchases in the marketplace and checkout sections. Popular items include: 

• Home Accessories: Kitchenware, candles, textiles, and decorations are highly sought after for their affordability and modern design. 

• Food Products: IKEA’s packaged Swedish food items, like cookies, chocolates, and jams, are popular take-home treats. 

• Stationery and Gadgets: Items like organizers, notebooks, and quirky gadgets appeal to students and young professionals. 

Why IKEA is Popular among Chinese Youth 

  1. Aspiration Meets Affordability

IKEA represents a modern, minimalist lifestyle that resonates with the aspirations of urban Chinese youth. Its showrooms offer glimpses of a stylish, organized life that feels attainable, even if they’re not yet ready to invest in furniture. 

  1. Social Media Appeal

IKEA’s aesthetic interiors, quirky products, and food offerings are perfect for content creation. Young people often document their visits, sharing photos of themselves lounging on beds or eating Swedish meatballs, boosting IKEA’s visibility on platforms like Xiaohongshu and WeChat. 

  1. Escaping Urban Chaos

In densely populated cities, IKEA stores offer a sense of calm and order. The brand’s welcoming environment allows visitors to relax, dream, and escape the pressures of urban life. 

From Store to Community Hub 

IKEA has embraced its evolving role in China. It organizes events and workshops, like DIY furniture building or home organization sessions, to further engage with young consumers. Additionally, IKEA has adapted its digital presence, offering online shopping and AR tools to attract tech-savvy shoppers. By fostering a sense of community and fun, IKEA has become more than just a store—it’s a cultural icon for the Chinese youth, combining leisure, food, and inspiration in a single space. 

IKEA’s journey in China highlights the importance of understanding and adapting to local consumer habits. While its primary purpose remains selling furniture, IKEA has managed to position itself as a lifestyle destination that resonates deeply with Chinese youth. Whether lounging in showrooms, savoring Swedish cuisine, or snapping photos for social media, young Chinese have made IKEA their own—a place to dream, relax, and connect. This shift underscores the brand’s ability to evolve and meet the changing expectations of its audience. 

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