A Standardized Approach to the World? Ikea in China

A standardized approach to the world? IKEA in China

IKEA, the Swedish home furnishing retailer, was established in Sweden in 1943 by Ingvar Kamprad. IKEA present in China market in 1998. There are 3 stores in China; Beijing, Shanghai and Guanzhou.

The mission of IKEA’s business is “IKEA offers a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford them”, which means all the other countries are performed in the same strategy. IKEA does not target as many as people as it does like in others countries compare to China. The main target group is female; the one that take the decision about home.

Firstly, Merchandised, IKEA adjusts the products to fit local/regional demand. Many Chinese people live in apartments with balconies; IKEA has added model sets and special balcony sections in the store. To contend with the companies that doing this business in China, IKEA focus on giving help on home decoration rather than selling individual products. But IKEA still faced many challenges; plenty of people take use of free service instead of buying anything, and the low cost competitors were copying IKEA’s subjects.

Secondly, the location, the stores will take placed to be where public transportation. It’s closer to the city center. Also there are 700 parking places in Shanghai store.

Thirdly, Advertisement and Promotion, there are 2 mains differences between China and the rest of the world

• Communication with the consumer (softer theme, Internet, lesson in home decoration)

• Reliance on the catalogue (only distributed in the stores)

Fourthly, the selling environment and services level, IKEA sold the same products in others countries but set up in the different ways. IKEA also provides a service for a little fee. Including shopping hostesses; to provide for helping Chinese consumers. Home delivery is also one of the services that IKEA have in the stores.

There are many changes in IKEA’s marketing plans in China such as lower prices of merchandised, different location stores and store format. IKEA still used some concept of standardized at first but some strategies and marketing had to be changed for Chin