Ikea In China Case Study

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IKEA IN CHINA Since Ikea built its first retail store in China in 1998, Ikea has been exploring the Chinese market. Now there are more than 20 Ikea retail stores in China. It took Ikea a lot of time and a great deal of effort to make its way through Chinese market. A decade ago, the Chinese were not as open as they are in 2017. Ikea faced a lot of unexperienced problems. Firstly, the price they set no longer had the advantage as the case in western world. Secondly, people were not used to the service Ikea provided. They were not familiar with the “no salesman” policy and they expected the sellers to build their furniture instead of having to build it themselves back at home. Ikea has to change their strategy and also do not violate their business conception, which is to provide a range of furnishing with affordable price to a mass group of people. I’d like to focus on their product design and transportation and propose some…show more content…
But I don’t quite agree with them. Design stage accounts for 70% of a product’s environmental impact. So if they do decide to design new products for Chinese costumers specially, it would add a lot more impact on the earth and the environment. Besides, is new design really necessary? I do admit that one of the reasons that Ikea had a hard time emerging to Chinese market was that their design and style do not match with traditional Chinese style. However, almost two decades after Ikea’s first tempt in China, the culture has changed a lot. The world is more closely-connected than ever and people’s horizons are wide opened. Especially when Ikea is aiming at the white-collars who are more educated and appeal to the western world, there are no longer problems for the costumers to accept and appreciate the European modern style furniture. This decision will surly lower the cost and also contribute to the sustainability of

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