With the advent of technology, Ikea is finally joining the bandwagon of offering services online in Shanghai.

Along with the launching of the Swedish home furnishings retailer's e-commerce initiative, the company will finally start selling their products online before August ends.

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This move by the company was welcomed by Lu Zhenwang, an internet expert and chief executive of Wanqing Consultancy in Shanghai, who said that with the demand it is receiving, going online is certainly a good decision.

"The physical stores of Ikea are very big and require large areas," Lu said about the e-commerce business of Ikea in Shanghai. "The stores in first- and second-tier cities are nearly saturated."

"There aren't any Ikea physical stores in third- and fourth-tier cities though the demand is emerging, so it's essential for Ikea to launch e-commerce services and to serve those places easily in the future," the internet expert added. "It would be convenient to set up some pickup and order points in smaller cities."

As Ikea's first attempt at online selling in the Asia-Pacific region, the delivery services for its ready-to-assemble furniture products, appliances and home accessories (except for food and green plants, though), will only be available in Shanghai initially.

However, when the model proves to be successful, the delivery services will be offered as well throughout the country.

"This business model, with small investments, is suitable for smaller cities, where they don't have physical stores," the company said. "Ikea will launch more such pickup and order points in China."

 Before Ikea opened its online business in Shanghai, it has already launched it in Europe, particularly in northern Europe and the United Kingdom.

TagsIkea Shanghai, china