Ikea in China

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Ikea In china

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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 Systems B.V. 2010). Thus, by implementing this type of pricing strategy, the brand became successful in positioning itself as an inspirational western brand (Inter IKEA Systems B.V. 2013). Hence, it might be stated that by changing the strategy of targeting a specific class in China as compared to mass market in others like Europe and Denmark, proved extremely effective for the organization. In addition to pricing strategy, the organization of Ikea also offered higher concentration over product strategy in order to enhance its demand in the market of China (ESOMAR, 2008). Due to which, the organization of Ikea tried to develop extremely innovative designs and mind-blowing styles Such as square tables with numerous colors and designs so as to fascinate a wide range of premium customers (Keegan, 2002, pp. 323-334). In addition, approximately 500.000 varied types of cup sets and plastic placemats are developed by the organization so as to make the eve of Chinese New year more remarkable and awesome for its citizens. The prime idea behind such a strategy is to offer the products at any location and at any time (Business Today, 2013). Other than this, the organization of Ikea also designed varied types of modern and trendy furniture’s so that it gets fitted accurately in the small spaces of the apartments as well. This is also another remarkable feature of Ikea that enhanced its image and demand in China as compared to Europe (Inter IKEA Systems B.V. 2012). In addition to this, the organization of Ikea also changed its marketing strategy in the market of China as compared to Europe. In Europe, it used the designs and styles of its products so as to attract the customers (Drummond & Ensor, 2006). However, in China, it offered high promotion in micro-blogging website Weibo, television, print, newspapers, in-stores ads etc of its products designs so as to increase its level of awareness among its target customers as compared to other local competitors (Kazmi, 2007, pp....
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