IKEA'S Exploration Of The Whole Industry Chain Business Mode

When other home building materials enterprises have been sluggish and closed down, how can IKEA maintain its good growth? The secret of its popularity in the world is its excellent business operation mode.

How did IKEA use this business model to maintain the high efficiency and low cost business value chain of the organization?

China IKEA procurement world first

Founded in Sweden in 1943, the Swedish IKEA group has become the world's largest furniture household products business. Sales mainly include seats, sofa series, office supplies, bedroom series, kitchen series, lighting series, and so on. The IKEA family is the largest furniture manufacturer in the world.

Cooking utensils series, house storage series, children's products series and so on about 10000 products.

IKEA has 311 shopping malls in 38 countries and regions in the world, of which 16 are in mainland China, in Beijing (two), Tianjin, Shanghai (three), Guangzhou, Chengdu, Shenzhen, Nanjing, Wuxi, Dalian, Shenyang, Shenyang, Shenyang and Shenyang.

Among them, Chongqing IKEA is the largest IKEA standard store in Asia.

IKEA's procurement mode is a global procurement mode. It has set up 16 procurement trading regions around the world, 3 of which are in the mainland of China: Southern China, central China and North China.

IKEA has accounted for 18% of total purchases in China, ranking first among IKEA procurement countries.

Wuhan IKEA project is the only one in Central China, "IKEA shopping center + IKEA home shopping mall" consortium.

According to the reporter, the sales of IKEA shopping mall in Wuhan in September 16, 2014 was 2 million 400 thousand yuan, and the number of visitors was 24 thousand. It set a record of IKEA's sales and visits to China on sale day.

The layout of IKEA's project in Wuhan will be divided into three steps.

First step, IKEA shopping center will radiate the Wuhan city circle and even the five central provinces; the second step is to put the Midwest logistics center in Wuhan; the third step, the production center will be placed in Wuhan.

It is worth paying attention to the operation mode of IKEA in China: the two companies operate in the early stage and the late stage, and the IKEA is responsible for the development, operation and investment of commercial real estate, while IKEA retail is currently only responsible for the retail part.

It can be seen that IKEA has entered into the commercial real estate market through the retail advantage of retail stores, not only has long been a plan, but also its team specialized operation mode is the premise for the success of commercial real estate.

Product matrix design ensures minimum cost

stay

In the face of the impact of traditional offline businesses, IKEA's business has steadily improved, especially in China, where its revenue growth exceeds 17%.

But on the other hand, IKEA's counterparts in China have been sluggish and bankrupt.

The reason why IKEA has a better performance comes from its intensive cultivation of physical stores to the extreme. From product development to store operation, it focuses on customer needs.

IKEA develops and produces many products every year.

How can IKEA carry out research and management of single products in such a large number of complicated products? Is there a set of scientific logic rules?

The answer is that the internal logic of IKEA's product development is:

。

First, IKEA will be divided according to the category of products. This is a dimension of the matrix. Secondly, IKEA will divide the same commodity into different styles according to the color and furniture style. This is the second dimension of the IKEA product matrix. Finally, IKEA also says that the products are divided into high price, medium price, low price and super low price according to the price interval, and the super low price is the heartbeat price.

In this way, the product matrix of IKEA furniture is composed of three dimensions: category, style and price.

The development of IKEA products is in the framework of such a matrix.

IKEA developers are using product matrix to find gaps and omissions in their categories. This is the core competitiveness of IKEA products.

At the same time, in order to control the cost of the product, get the initial pricing power, and control the upstream of the industrial chain (to know that many retail stores are stacked with goods from different suppliers, the price they want to control is usually not so easy). IKEA has been insisting on designing all its own products and having patents. Over 100 designers have been competing fiercely when designing new products, and the competition is concentrated on the same price products, whose design cost is even lower. This even includes the use of a screw thread or hemp rope, or a more economical use of a plastic board.