AsianFin -- Ikea’s China unit said it will invest 160 million yuan (USD22.4 million) in the coming fiscal year to lower product prices, with about 70% of the funds directed toward developing customer favorites to better compete with local rivals.

Starting Sept. 1, Ikea China will roll out more than 1,600 new furniture and home appliance items, including 150 products under its “lower price” program and 23 new product lines, the company announced at its 2026 fiscal year kick-off meeting. The firm noted it has already invested 673 million yuan over the past two years to maintain affordable prices.

In addition to price cuts, Ikea plans to expand its network of small-format stores in multiple Chinese cities. Modeled on its Shenzhen outlet, these community-focused shops occupy just a few hundred square meters and act as design and order centers, offering customers personalized services rather than replicating the company’s traditional large-scale malls.