The new War of Ikea

It was an arrangement of Sundays.　　Wu Yu a 1.5-hour drive from his home, then spent a day with his girlfriend at Ikea Mall in Wangjing, Beijing. "We're here just for fun." This "experience" is so intuitive and easy to feel.　　Take a look at the furniture design, the layout of the house, or simply nap on the soft couch and enjoy affordable Swedish food and complimentary coffee in the Ikea restaurant.　　Lazily enjoying all of this throughout the process, you can rest assured-there will not be a store attendant chattering promotions and rough eviction. In every shop in Ikea, the daily presence of customers will be endless.　　If it coincides with the weekend, there will be thousands of spectators crowding, they walk into the large exhibition halls, to the exquisite model room, to enjoy the observation and trial of all the exhibits. However, like Wu Yu, for the vast majority of them, this is almost the entire content of this trip. Expect them to open their wallets and consume them? Hey, that's not easy.　　In fact, this is exactly what it is going to be like to work on. The price-drop has entered the wildest years of the Chinese market. Into September 2009, IKEA lowered the retail price of more than 500 products, and some of the hot products fell to 20% to 30%.　　In addition, more than 300 kinds of "main products" will be the average price itsactions to know that more than 300 kinds of product sales accounted for Ikea China's overall share of more than 40%.　　On this price, IKEA does not want to be too "rendered", it simply said "It is a practice": Every year in September Ikea will issue a new IKEA catalogue, will offer as much as possible preferential prices.　　But it would be far too narrow to think of Ikea's most drastic price reduction in five years as a "routine commercial marketing".　　In fact, there is a story behind Ikea's "low posture": Starting in 2009, IKEA launched a "brand capital survey" in the Chinese market (Brand)-testing and tracking the implementation of Ikea's ideas and measuring the confidence of customers across the country, a survey conducted every three years.　　The results of the survey let Ikea frustrated: "Ikea", this is always targeted at consumers of middle and low brands, in the eyes of Chinese consumers are positioned as high-end, and the petty bourgeoisie, middle class and so on. Ikea, which is dissatisfied with the result and hopes to remedy it as soon as possible, then has the unprecedented big price cut in the Ikea Chinese market. But in response, Ikea still avoids answering.　　Although Ikea has been in China for more than 10 years, communication with the media does not seem to inspire greater interest in IKEA than its enthusiasm for delivering brochures to target consumers through a variety of channels. The Chinese encounter in discussing the real origin of Ikea's price reduction, we may wish to look at the following sets of data from Ikea's official website, all of which are about the Ikea China market: In fiscal year 2008, IKEA Group has 350 Chinese suppliers and 21% of its products come fromChina is Ikea's largest supplier of products; 2008 Ikea China's turnover of about 2.79 billion yuan, less than IKEA group global 21.2 billion euro sales of 2%; As of September 2009, Ikea in 37 countries and regions have 301 Ikea stores in China, only 7 stores ... Yes, as you can see, the home magnate is more about China as a production base than a sales center; Although it went into China in the 11, its malls were not all over the place.　　This is not surprising because, in Ikea's internal data, China and Russia are known as "relatively young markets". "Ikea's performance in the Chinese market has been less than satisfactory compared with its performance in the US and European markets. "A senior domestic retail business executive commented on anonymity.　　Crowded behind the bustling, but can not conceal such an embarrassing situation: customers nostalgia Ikea, and occasionally reap a piece of design novelty of the product is proud, but can not form a large-scale purchase; they more enjoy the style and atmosphere of Ikea, rather than the realization of purchase demand. Wu Yu and his girlfriend, as mentioned in the article, are representatives.　　They choose to spend 1-2 weekends each month at Ikea, buying plates and cups at Ikea but not buying large furniture. If Ikea founder Ingva Camprade knew about this, he would have met with embarrassment.　　The company, which came from the town of Smalland, in southern Sweden, established its business philosophy at the start of more than 60 years ago: offering a wide range of beautiful, practical, affordable household items, cheap as its corporate foundation. At an earlier economic forum, the summit of the vice president of Ikea, which had rarely appeared, even drew up a specific quantitative indicator.　　He said that "Ikea is for 80% of the mass service, not the minority", and stressed that this is IKEA a "very important feature." But at least for now, the goal is far away. Chinese white-collar workers to "drink Starbucks coffee, with Ikea furniture" as a kind of fashion, Ikea is trapped in "selling is style, not furniture" embarrassing reality. [Page] breakthrough is imminent.　　The first step for Ikea is to cut prices, and it is the most drastic price-cutting trend in five years.　　This is also not difficult for Ikea-Ikea has been controlling the design, sales of two of the most profitable terminals, only the most profitable production link outsourcing, long-term accumulation of lucrative profit space is to support Ikea this round of the most powerful "capital".　　An Ikea supplier in Guangdong, for example, provides Ikea with a price of 19 U.S. dollars (about 140 RMB), while the sale price of Ikea stores is more than 300 yuan. But Chinese consumers do not seem to be buying into the price concessions of Ikea. In China, the low-cost market, The imitation of Ikea-style products abound, they have the same glamorous shape and cheaper prices. Obviously, only in the price of shopping, not Ikea's forte, want to affect consumption, IKEA will have to think of more ways. In Europe and the United States, IKEA products are mainly designed for young people over 18 years of age, the age of children need to leave their parents, independent life.　　At this time, simple, easy to use, easy to move the daily necessities and simple furniture is the best choice, Ikea in Europe and the United States market is more to cater to this part of the needs of the low-end people. But in China, such a consumption layer is almost missing. "To Ikea's Chinese consumers have a petty bourgeoisie breath, they hope Ikea products fashionable attractive, in the guarantee of competitive prices at the same time, but also hope that the quality of reliable, more rich brand factors."　　Zhu Changling, vice chairman of China Furniture Association. Right now, Ikea is tweaking its product mix to make it look more like the Chinese consumer.　　According to IKEA group President Anders Dahlvig, the future Ikea launched a series of products, must reflect the good design, low price, quality and excellent characteristics. Market strategy changes, but also let Ikea start like other home companies, around the enclosure. From 1998 to 2007 of 9 years, IKEA only in China's Beijing, Shanghai, Guangzhou, Chengdu, opened 4 stores. Since 2008, IKEA has opened 3 new stores in Dalian, Nanjing and Shenzhen.　　And it could be faster-IKEA Asia Pacific President Duffy said, "In the future IKEA will open three new stores in China every year."　　The new blue sea careful "Ikea powder" has already found some subtle changes: Ikea stores around the home, enjoy the home design, you can go to the Ikea restaurant to enjoy Swedish food; checkout, in the first floor of the "Swedish Food House", you can also buy imported food and a dollar of cheap ice cream cone. Wang Yong, director of the Ikea China Food and beverage service, admits that the gross margin of Ikea and food houses is rather low, "but the purpose of the Ikea restaurant is not to make a profit, as long as it attracts people in."　　"If Ikea and the Swedish food House are only on the level of helping to increase the user's viscosity, then Ikea's moves in commercial real estate may hide a bigger" conspiracy, "he said. In February this year, Ikea's brother company, which specializes in shopping malls, officially entered China and won a commercial land in Daxing, Beijing, after half a year at a price of 790 million yuan.　　The site, 304,000 square meters, is the second-largest store in Ikea's global store, after its flagship store in Sweden, 3 years later. However, the store is not a big point, the focus is that it is a standard shopping center, where in addition to IKEA brand home, you can also see more department stores brand and kind.　　OK, let us express more image of some-in the future, you can not only see the trendy home design, you can also skate here, watch movies, buy clothes, eat food.　　Daxing take the land is only a test water, the British special Ikea next may also be in Wuhan, Wuxi and other place "large-scale". Ikea is aggressively preparing for such a critical strategic realignment-fromSimple Home Store transformation to home as the core of the integrated shopping center.　　It is not hard to understand that commercial real estate shopping malls are more lucrative for Ikea's future than the Ikea who experiences more than shopping. At least at the operational level, this is not difficult.　　Ikea shopping mall in Europe, in Moscow, set shopping, catering, entertainment in one of Ikea mall, is the world's largest shopping malls, in addition to Ikea home, there are Nike, Adidas, CK, Zara and other brands as well as supermarkets, restaurants, hotels and cinemas. However, the problem may follow, Ikea can successfully graft the European model to the complex market, a large number of China to come?　　But this is the future of things, now Ikea has to do is to change. (This source: South du weekly)