Ikea China on Wednesday pledged to invest 160 million yuan ($22 million) in China during its 2026 fiscal year, as the Swedish home-furnishings giant deepens its bet on the Chinese market through price cuts, new product lines and expanded digital services.

The retailer plans to introduce more than 1,600 new home products, 23 collections and over 50 new food offerings over the coming year, with a sharp focus on "complete sleep" and "kitchen living".

It has pledged 160 million yuan in price cuts covering more than 150 bestselling items.

Over the past two fiscal years, Ikea China has already spent 673 million yuan to develop more low-priced products and launched an AI-powered digital design platform now available in 31 Ikea markets.

The company opened new stores in Xi'an, Shaanxi province, Shanghai, and Shenzhen of Guangdong province in the ongoing fiscal year, apart from the first pickup point in the country that welcomed customers in Shenzhen.

Tolga Oncu, retail manager and COO of Ikea Retail, Ingka Group, said: "China is not only a vital link in Ikea's global value chain; it is also the test-bed for retail innovation. We look very much forward to continuing innovating our retail business in China and bringing some learnings to other parts of the world."

Ikea's new brand promise for the 2026 fiscal year — Home Is More Than You Think — is underpinned by its latest China Life at Home Report, which found that people satisfied with their living spaces are more optimistic about the future.

Consumers are increasingly seeking flexible, evolving homes, long-term value and products that enhance daily well-being. Ikea said it will focus on inspiration, longevity and affordability as its three guiding values.

To deliver on those goals, the retailer plans to expand kitchen offerings with sustainable, cost-effective materials tailored to Chinese cooking, add more localized dishes to its in-store restaurants, and roll out further investments under its "Growing Plus" initiative.

Ikea China has also been stepping up its digital and omnichannel strategy. In August, it opened a flagship store on JD.com to reach more customers in the market, following last year's establishment of a retail development center to develop products, logistics and digital solutions designed specifically for the local market.

Sustainability remains central to Ikea's China strategy.

Ingka Investments, the investment arm of Ingka Group, last month invested in Shanghai Re-Mall Environmental Protection New Material Co Ltd, a Chinese recycler of post-consumer packaging waste, marking the first Chinese investment for Ingka Investments in its Circular Investment portfolio.

The company said it will continue to expand green operations, consumption and circular services in partnership with local players.

Ikea China said it will stay open-minded, continuously exploring digital platforms while upgrading existing full-size stores and piloting new small-store formats.

To date, Ingka Group operates 40 customer touchpoints in China — comprising 37 Ikea stores, two experience centers, one design studio and 10 Livat shopping centers.