Although it has been continuously implementing low-end business strategy around the world, Ikea re-positioned its image to be stylish in China in order make visitors feel they have a fashionable taste for choosing house decoration stuff. Therefore, after Ikea entered China, a trend emerged amid young generations of Chine se that hanging around at Ikea furniture mall is an exciting and leisure activity. If we look at the financial results of Ikea to analyze the performance of Ikea China, it can be easily found out that Ikea is driving on a speed train and is in a burgeoning market. As for the number of customer visits in their brick-and-mortar stores and online mall, a research showed that more than 15 million people and 24 million netizens have been experiencing the services of Ikea offline and online respectively.
No comments Ikea in China. China has enjoyed rapid economic development since it opened its doors to the international market. The living conditions in China have significantly improved due to the economic strength China has gained. With the continuous improvements, the purchase power parity has driven the furniture market in China to develop.
The population of China has become more willing to invest in home decoration as a mean of the improvement of the standard of living.
According to the National Bureau of Statistics, there were 5, furniture enterprises in China with a total estimation of The furniture industry has made tremendous progress, and the country has become a world-class location for setting up furniture factories and an important export base.
According to the Chinese Family Development Report inthere were roughly million households and it is expected to be million by in all provinces of China.
To add to that, the low labor cost and large consumer market in China has attracted many foreign furniture enterprises. Chinese consumer expectations and purchasing behaviors have marked regional variations, particularly for products reflecting cultural and personal tastes.
The furniture market in China is still developing with advanced manufacturing and application of information technology in production. At this moment, the future development trend is green manufacturing in which the whole life cycle of products must be conducive to the environmental protection and the reduction of energy consumption.
Foreign industry players will need to step up their pace of entering china. The company intends to expedite its pace of expansion in China. This venture served as a good approach to test the market, understand the local needs and adapt strategies to gain competitive advantage.
Ikea had to make adjustments to its marketing strategy as the company uses its product catalog as a major marketing tool. IKEA in China realized that digital marketing was the way to go, with that IKEA Group used digital technologies using the internet such as Chinese social media and micro-blogging for their marketing campaign to gain market attractiveness and brand recognition.
Also, Ikea had to adjust its store location strategy as most consumers in China use public transportation. Rather than the usual stores in the suburbs, Ikea sets up its stores on the outskirts of cities which are connected by rail or metro networks.
Ikea in China has made all the necessary adjustments to certify that there were minimal obstacles in its growth, ambitions, and brand promise.
To become a well-noticed brand among the Chinese Middle-class steps as such as to be taken to grab the attention of the consumers. IKEA in China has demonstrated courage, adaptation, and awareness to shift its production, work with local sources, overcome legal requirements and adapt brand proposition to suit the level of development of the market and consumer perception.
With that, to grow globally requires sacrifices and innovation from global teams and listen, respect and learn with an open mind. As mention as an example above, IKEA entered the Chinese market by learning from their mistakes and continuously adapt themselves to the changing environment.
Not many companies have the ability to go through trial and errors because it is very costly when mistakes are made. Daxue Consulting can help you strengthen your market entry in Chinawhether you are in need of a market survey to understand the need of your customers or a pricing strategy to attract your customers and differentiate yourself from your competitors.
Follow us on Twitter: The Rise of a New Consumer Class. Find Out All the Facts at https:International Marketing Report of IKEA in Chinese Market [pic] 12BSP INTERNATIONAL MARKETING School of Business and Economics 22 Contents 1.
Executive Summary 1 2. Introduction 2 3. Internationalization 3 4. Foreign Market Segmentation and Targeting 5 5.
Environmental Analysis 7 Strengths 7 Weakness 8 Opportunities 9 Threats 10 6. Ikea China Marketing Analysis Research Paper International Marketing Report of IKEA in Chinese Market [pic] 12BSP INTERNATIONAL MARKETING School of Business and Economics Global Marketing: An Analysis of IKEA and Ashley Furniture Industries’ Marketing Activities services can potentially have a global appeal and generate considerable revenues across the world.
IKEA started its retailing operations in China and set up its first store in Shanghai in year The decision of IKEA to enter Chinese market stems from supporting political, social and economic conditions that allow IKEA to beneficially acquire advantages in the Chinese market (Pan, ).
The furniture industry in China is booming while currently, the furniture industry in China is characterized by small workshops which mean the lack of competitive local brands so it is optimal opportunity to win market share from rivals. Ikea China Marketing Analysis - Essay Example Tagged Marketing Analysis Currently, it only has 11 stores in China and the expansion speed is much slower when it is compared with other foreign furniture impasses such as British B&Q which already had 38 stores in China (L’, ).