Social Forces

Chinese customers increasingly buy home dcor to improve their quality of life. The
14th Five-Year Plan's three-child policy is also driving children's furniture sales. 2022–2026
will see 11.6% growth in the Chinese se furniture market.

Figure 1 Source: National Bureau of Statistics, designed by Daxue Consulting, Size of the

furniture market in China, 2020-2026

The social force is IKEA's China has more youthful, educated, and tech-savvy
customers. Young Chinese consumers are seeking things that match their attitudes and
lifestyles as they become financially independent. The one-child policy also created a new
generation of 35–25-year-olds who are well educated, eager to try new things, and impulsive
about buying international products.

To engage clients and streamline shopping, IKEA China created a mobile app and
social media presence. IKEA China also offers tech-savvy clients smart lighting solutions and
wireless charging stations. The company's "Home Smart" project promotes smart technology-
enabled household convenience. IKEA offers educational tools and video assist clients
become more tech-savvy in home dcor and lifestyle.
Figure 2 In 2012, IKEA China started its smart home initiative to incorporate digital
elements and technology into its products to offer solutions to homeowners.

Culture Forces

IKEA's in China names " (yi jia)," literally translates to "suitable and pleasant for your
home." The Chinese place a high value on familial harmony and their traditional culture.
Chinese customers seek items that represent their cultural heritage and aesthetic tastes,
including creating a comfortable home. IKEA China has reacted to this trend by combining
bamboo and "Feng Shui" features into their products to create a distinctive and attractive
appearance that connects with Chinese customers.

Figure 3 Source: www.grandviewresearch.com

 Based on Figure 3, Bamboo symbolises humility, morality and loyalty in chinese
culture. However, bamboo growth is mostly due to infrastructural improvements and the
usage of sustainable furniture materials. Bamboo absorbs 40% more CO2 and releases 35%
more oxygen than trees, improving air quality.

Additinally, Chinese culture values feng shui, which includes arranging furniture and
things to facilitate good energy flow. IKEA China designed its stores and product displays
with principles of "Feng Shui" to generate social connection and satisfy Chinese consumers'
yearning for a deeper and more authentic home life. For example, the Figure 4 show that
ShangHai’s shop design and displays emphasise family-oriented items and furnishings to
represent Chinese culture's value of family.

Figure 4 Source: Ingka Group, new showrooms and spaces in IKEA’s Shanghai Xuhui store.

Demographic Forces

The primary driver of the Chinese furniture market is domestic demand, which is
mostly driven by ongoing urbanisation. According to the Figure 5, China has been rapidly
urbanising, with a significant proportion of the population migrating from rural to urban
regions. Consumer spending power, habits and housing choices are impacted by urbanisation
trends.
Figure 5 Source: www.statista.com

There is a growing need for small-footprint and multipurpose furniture as more people
relocate to urban areas. In response to this trend, IKEA China has created a variety of
multipurpose, space-efficient furniture designs to meet the demands of urban people. IKEA
China has also designed shop layouts that highlight compact living quarters and provide
suggestions for maximising space in a tiny flat. For example, Figure 6 shows IKEA's Small-
Space Living Room Layout Ideas: Save space and tidy with wall-mounted storage.

Figure 6 Source: www.apartmenttherapy.com (Image credit: IKEA)

Environment Force

Figure 7 The economic burden of air pollution. Image: Statista. Sources: Greenpeace, Center
for Research on Energy and Clean Air

The environmental force in IKEA China is the need to reduce air pollution and boost
sustainable energy. China's air pollution is a severe environmental concern, thus the
government has enacted laws to minimise emissions and encourage renewable energy. Due to
government involvement, Chinese furniture buyers are also concerned about the environment
and materials. Green manufacturing is likely to have a big impact on the future of making
furniture in China.

Figure 8 Major targets of China's 14th Five-Year Plan (2021-25). Graphic: GT. Source:
Government Work Report 2021.
 IKEA China has reacted to this trend by investing in renewable energy sources such
as solar panels and using sustainable practises in its operations to lower its carbon impact.
IKEA China also sells LED lights and other high-efficiency appliances to help clients save
energy and clean the air.

Figure 9 Source: International Renewable Energy Agency (IRENA)

www.mordorintelligence.com

Figure 10 source : LEDinside (www.ledinside.com)

(588 words not include title and picture’s descriptions)

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