Ikea assembling a strategy for the future

"Yes, we have stores in many countries. But none of them has the same importance as the China market to Ikea," said Agnefjall.

The Asian market only contributed 6 percent to the company's global revenue and China accounted for just 2 percent.

Impressively, "China is our top sourcing country, with 22 percent of Ikea's global purchasing coming from about 300 Chinese suppliers," said Agnefjall.

He said that the company's recent move of opening the first wholly- owned manufacturing facility in the country last month indicated Ikea's further determination to make China its manufacturing hub.

Located in Nantong, Jiangsu province, the factory will produce wooden products to supply Ikea stores mainly in China.With this facility, Ikea will have 43 manufacturing units in 12 countries.

"Having a wholly-owned factory helped Ikea to have a complete value chain in China, after we set up our two biggest warehouses and a test laboratory in Shanghai," said Agnefjall. "It also actively enables us in our long-term efforts to continuously cut product prices for local customers."

Providing more relevant and affordable solutions to millions of potential Chinese customers, with good-quality products at lower prices is Ikea's strategy.

It cut product prices in China by an average of more than 50 percent between 2000 and 2013.

Greener future

As the new CEO, Agnefjall is also committed to making Ikea even greener", through its sustainability strategy set for 2020.

"Ikea is likely to make a small but important contribution to society," he said.First, Ikea "should enable people to live a more sustainable life at home".

Peter Agnefjall

"We welcome 700 million visitors to our stores and have 1 billion online visitors every year. If we can encourage just a fraction of those to start using an induction hob or to install an LED bulb instead of a conventional light bulb, then things are taking a step in the right direction," said Agnefjall.

Disclosing that Ikea just installed its 500,000th solar panel worldwide on the roofs of Ikea buildings, Agnefjall said that the second step is that "Ikea would like to become energy-independent, which means that we will produce the same amount of sustainable energy within the group as we consume by 2020".

In July, Ikea announced it is cooperating with Chinese solar company Hanergy Holdings Group Co Ltd on a grid-connected solar power generation project for all of the Ikea stores in China as well as Ikea's selected suppliers.

The partnership will also expand to the global market because Hanergy will sell solar power generation equipment to Ikea's customers in the United Kingdom.

"That's my ambition: To create a better life for many people. It's not about selling products or business growth. It's sustainability for a positive life," said Agnefjal.