(Yicai) Sept. 3 -- Ikea said it will commit CNY160 million (USD22.4 million) to cut prices in the Chinese market over the new fiscal year, with the Swedish furniture giant using 70 percent of the funds to develop bestseller products in response to intensifying competition.

Ikea China plans to release more than 1,600 new furniture and home furnishing products, 150 items under its "lower price products" scheme, and 23 new product lines in the 12 months started Sept. 1, it said at a kick-off meeting for its 2026 fiscal year yesterday.

The company invested CNY673 million (USD94.3 million) to keep prices low in China over the past two years, it added.

Competition in the retail market is very fierce, and brick-and-mortar stores will focus more on product differentiation and price adjustments, industry insiders told Yicai. Developing more cost-effective goods is becoming a competitive focus for merchants, as reflected by Ikea China's new business plan, they noted.

Ikea will also open new small-format stores in several cities based on its outlet in Shenzhen. These stores, which cover an area of only several hundred square meters and are more community-oriented physical shops than standard malls, serve as the firm's design and order centers, providing customers with personalized design services.

Editors: Tang Shihua, Martin Kadiev