Ikea Strategy In China Essay

984 words - 4 pages

Ikea Strategy in China

I. Ikea strategy in China

II. Comparison Supor, ASD and Ikea (regarding to cookware)


I. Ikea in China

IKEA has been in the Chinese market for more than 10 years.

Ikea is used to be perceived as having low prices, this also one of the competitive cornerstones of the whole concept of Ikea. But this is not the case in China: here the perception is a fairly ...view middle of the document...

IKEA also had to change its marketing strategy. In most markets, the company uses its product catalogue as a major marketing tool. In China, however, the catalogue provided opportunities for competitors to imitate the company’s products. Indeed, local competitors copied IKEA’s designs and then offered similar products at lower prices. IKEA decided not to react, as it realized Chinese laws were not strong enough to deter such activities. Instead, the company is using Chinese social media and micro-blogging website Weibo to target the younger middle class group. Also, this source is used as a way to educate customers before coming to the Ikea stores on the concept and how the shopping experience will be.

Ikea have run many different ads in China, in TV, newspaper and in print. Themes in campaigns are the same as everywhere in the world but with the Chinese twist (be different, break tradition). Small changes are the key word in Ikea ads and in-store. Other ads that Ikea have run have the theme of “do not be like your parents”, a theme that seems to speak directly to Ikea’s target group.

IKEA also adjusted its store location strategy. In Europe and the U.S., where most customers use personal vehicles, IKEA stores are usually located in the suburbs. In China, however, most customers use public transportation. So the company set up its outlets on the outside of cities which are connected by rail and metro networks.

Overall the shopping experience is different. As other customers are an important part of the shopping experience the way the store is used. Chinese came not to shop but to socialize in a nice atmosphere, unlike other furnishing shops in China (erer you are not allowed to feel and touch the merchandise). Nor, you will still find people in the Shanghai store that seem to sleep in the beds and sofas, those that read book with the feet on one of the tables in the room setting, take a nap. But Ikea try to put up with this as they hope that these people will later return as customer.

Consumers in China are demanding when it comes to service. They are used to, if not world class service, but at least that there are people to help...

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