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    IKEA Plans To Open Shop In China To 2025

    2015/5/19 20:58:00 46

    IKEAChinaShop Plan

    In fiscal year 2014, China is the fastest growing market for IKEA.

    The entire Asia Pacific region, as well as emerging markets, including Russia, account for 15% of global sales, boosting IKEA's overall global performance.

    In 2014, a total of 7.14 billion people walked into IKEA stores, and 1 billion 500 million users visited the IKEA.com website, an increase over 2013. Sales also increased by 5.9%, reaching 287 billion euros.

    Cuca Polo's "equality" includes homogenization brought about by large-scale industrial production.

    But IKEA is far from achieving this goal in China. They do not have enough stores here. For most people, this is still a Swedish brand that needs to be purchased.

    After entering 16 in China, IKEA opened sixteenth stores in September last year.

    In the United States, IKEA has 39 stores and 222 in Europe.

    North America and Europe are still IKEA's biggest markets.

    As a non-listed company, IKEA does not need to show the beautiful number of stores in emerging markets to investors, but Chinese consumers will be dissatisfied. In all news related to IKEA, the most concerned customers are "when to come to us," rather than "IKEA set up a product research and development center in Shanghai".

    IKEA's plan last year was to expand at 1 stores and 3 stores in China this year.

    Now, the 3 shop plan may not be completed.

    By the 5 month of this year, 2 new stores in Hangzhou and Xi'an can be identified as scheduled.

    Xi'an is the second Midwest city that IKEA has entered after Wuhan.

    If IKEA wants to be more aggressive, it should be very difficult.

    On the one hand, the local governments of the two or three line cities welcome it, and it is much easier to get it; if they want to continue to open a new store in a big city, there is no way out.

    "In northern Guangzhou first tier cities, it is becoming more and more difficult to find the right land by relying solely on the strength and attractiveness of IKEA.

    We can help it in this respect. "

    Ding Hui, managing director of IKEA shopping center, China, said in an interview last year.

    The shopping center business of IKEA group is booming in China. Because of its large volume and complete format, it is considered to stimulate regional business.

    IKEA stores in China were once famous for their large areas, accounting for 8 of the top 10 IKEA stores in the world.

    But starting from the Chongqing store, including the opening of Wuhan in 9 months last year and the Xi'an shopping mall in the vicinity, IKEA has chosen the standard thirty thousand square meters.

    IKEA said that in some cities in the future, they would prefer to open two to three medium-sized stores and increase the radiation area.

    Chengdu's second home stores will open next spring.

    It sounds like this is the right way to change the way of life.

    The more shops, the more sales.

    cost

    It will be lower and the price will be more acceptable.

    You may not imagine that in the 11 years ending 2009, the average price of IKEA in the Chinese market has dropped by about 50%.

    In recent five years, the price has dropped by 15%.

    IKEA interpreted the price reduction as a cost reduction in raw materials and logistics, as well as an increase in sales volume.

    Therefore, Yi family finance reported that despite the price cut, the profit remained unchanged in the 2014 fiscal year.

    In addition to continuous shops and price cuts, IKEA's short-term changes in China do not look too great.

    Over the past 1 years, IKEA's new CEO Peter Agnefj ll and new product design director

    Marcus Engman

    Many new ideas have been put forward, such as emphasizing design and praising intelligence.

    IKEA has increased the number of new products. IKEA will launch 20 new brands in China this year.

    In the 8 month, IKEA's wireless charging device will also be launched in China.

    But in essence, IKEA China is still trying to be a more influential mass retailer rather than an industry innovator.

    For example, in designing, you have to distinguish between "new product" and "personalized design".

    Engman allowed IKEA to cooperate with more external designers to launch limited series in 2014 year. But IKEA's retail sector in China is not very optimistic about the role of personalized design in meeting the needs of the public. They are more willing to emphasize the increase in the number of new products.

    and

    Product development

    Depending on headquarters decisions, the retail sector has the right to make final decisions for the development of China's local market.

    In China, most of the best selling IKEA is the classic low price.

    In the last fiscal year's earnings report, IKEA China Sales Manager Fiona Li said, "we do invest more in low price products, especially those that meet everyday basic needs".

    For IKEA, the old problems of people are still around the same design and poor quality.

    In the eyes of kukabo, IKEA's "not durable and durable furniture" has taught people to "buy often lose", which is far from the good life.

    But IKEA's own view is the opposite. They believe that the real challenge IKEA faces in the Chinese market is that people do not want to spend enough money on household consumption, especially if they do not invest in household habits many times.


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