Chongqing - IKEA’s Chongqing store recently completed a 10 million yuan renovation, enhancing the shopping experience and advancing the Swedish retailer’s localization and sustainable growth strategy in western China.

Inspired by the local lifestyle, the renovated store features showrooms named after the city's landmarks. 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 dialect, we aim to create a sense of belonging that makes customers feel as if they’ve walked into their own homes.”

IKEA Chongqing store is located in Liangjiang New Area. (Wang Yantong/Liangjiang New Area Media Center)

The renovation reflects shifting consumer preferences with 68 redesigned showrooms featuring bedrooms, kitchens, living rooms, and dining areas. According to Wan Qiu, Sales Manager at IKEA Chongqing, local shoppers now prioritize sleep quality, kitchen design, and home comfort. Over the past year, sales of mattresses and bedding rose 25%, kitchen cabinets 20%, storage products 15%, and electric sofas 10%.

The growth, mirroring the rising demand for upgraded living standards, is tied to IKEA’s participation 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 The initiative is part of China’s national trade-in policy introduced in 2024 to subsidize the replacement of outdated goods with more advanced, green options.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. The initiative resulted in a nearly 10% year-on-year increase in store visits and significant sales growth, the company said.

“The subsidy program promotes green consumption and aligns perfectly with IKEA’s vision of creating a better everyday life for the 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, smart-home, and elderly-friendly products, addresses citizens’ growing demand for safer, more comfortable, and more convenient living spaces, Kong added.

Looking ahead, IKEA plans further investments in the city, including an exterior facade revamp project, said Wang Hao, Operations Manager. These projects, with investment standing at a 10-million-yuan level, reflect 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.”