Ikea Strategy in China

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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 exclusive western retailer, a store for the higher middle class. The company realized this and started targeting the young middle class population, which are between 25 and 35 who have relatively higher incomes than the average and a higher education than the average. They are often more open to a Westernized lifestyle, and in most instances. Targeting this segment helped IKEA project itself as an inspirational western brand. This was a huge change in strategy, as IKEA was targeting the mass market in other parts of the world.

Chinese see Ikea products as innovative and not traditional. Square tables are for example not traditional (round tables are tradition) and many of the colours used are not traditional to the Chinese. The Chinese Ikea stores have a special set of tea cups for the Chinese New Year. Also, 500.000 plastic placemats are produced to commemorate the year of the rooster. At the moment mainland China, as well as in Hongkong, the beds sold are shorter (190cm) than standard-sized beds (200cm). Many Chinese live in apartments with balconies and this space of the apartment is very important to the Chinese. IKEA has added settings in the store that show how you can…...

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