Business Model Innovation of IKEA China in the Digital Economy

In the era of digital economy, the wide application of information technology has made it easier to design business models effectively. As a result, the competitive landscape and business models of the retail industry have undergone profound changes against the backdrop of the explosive growth of the digital economy. In response to market changes, IKEA China has implemented digital innovation initiatives with the objective of exploring new avenues for IKEA to meet the challenges and seize the opportunities presented by the Chinese market. In this paper, through PESTEL and Porters Five Forces analysis tools, the macro environment and competitive environment IKEA China is in in the digital economy era are systematically analyzed, and its business model innovation strategy is then discussed. The results show that IKEA China has realized business model innovation through digital transformation, innovative marketing strategies, and the integration of new retail models under the influence of multiple factors, including political, economic, social, technological, environmental, and legal aspects. Moreover, the paper evaluates the effectiveness of IKEA Chinas business model innovation and makes suggestions for future development, which offers a practical reference point for the digital transformation of the retail industry, while also providing a model for other enterprises seeking to innovate in the context of the digital economy.