Ikea in China
Ikea In china
Table of Contents
Introduction
IKEA is recognized as one of the reputed brands of Sweden, operating in the segment of ready-to-assembled furniture’s, fittings, appliances, and many others designed accessories and equipments. Although it entered in this segment in the year 1943 in Sweden but very quickly it expanded its operations in the markets of China as well. It is mainly due to its modern architectural stylish designs and eco-friendly nature. This helped Ikea to improve its brand image and profitability by almost 50 percent as compared to previous years. This proved extremely effective for Ikea to enhance its customer bases and reliability in the market among many other rival players (Inter IKEA Systems B.V. 2012). Due to this strategy, the organization also expanded in Norway, Germany and Denmark.
Discussion
In this age of extreme competition, sustainability is extremely tough. Keeping this fact in mind, the organization of Ikea entered in China. However, in order to position itself and its products, it implemented the strategy of premium pricing (IKEA Group sustainable strategy, 2020). According to this pricing policy, the products are offered to the customers at a premium price so as increase its image and distinctiveness in the market as compared to other rival players. By doing so, the profitability and brand value of the organization might also be enhanced thereby amplifying its productivity as well. Not only this by implementing this type of pricing strategy, the organization might attract a wide range of high profile customers within an age-group of 25 to 35 years (Guillén & García-Canal, 2012). As a result of which, the reliability and demand of the products of the organization of Ikea might get enhanced within the market of China among the other existing rival players. Due to which, the net income and total sale of the products might also get increased by 65 percent as compared to other contenders (Inter IKEA
Table of Contents
Introduction
IKEA is recognized as one of the reputed brands of Sweden, operating in the segment of ready-to-assembled furniture’s, fittings, appliances, and many others designed accessories and equipments. Although it entered in this segment in the year 1943 in Sweden but very quickly it expanded its operations in the markets of China as well. It is mainly due to its modern architectural stylish designs and eco-friendly nature. This helped Ikea to improve its brand image and profitability by almost 50 percent as compared to previous years. This proved extremely effective for Ikea to enhance its customer bases and reliability in the market among many other rival players (Inter IKEA Systems B.V. 2012). Due to this strategy, the organization also expanded in Norway, Germany and Denmark.
Discussion
In this age of extreme competition, sustainability is extremely tough. Keeping this fact in mind, the organization of Ikea entered in China. However, in order to position itself and its products, it implemented the strategy of premium pricing (IKEA Group sustainable strategy, 2020). According to this pricing policy, the products are offered to the customers at a premium price so as increase its image and distinctiveness in the market as compared to other rival players. By doing so, the profitability and brand value of the organization might also be enhanced thereby amplifying its productivity as well. Not only this by implementing this type of pricing strategy, the organization might attract a wide range of high profile customers within an age-group of 25 to 35 years (Guillén & García-Canal, 2012). As a result of which, the reliability and demand of the products of the organization of Ikea might get enhanced within the market of China among the other existing rival players. Due to which, the net income and total sale of the products might also get increased by 65 percent as compared to other contenders (Inter IKEA
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