ikea china .pptx

8/14/2019 ikea china .pptx

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IKEA is an international home productcompany that designs and sells ready toassemble furniture appliances and homeaccessories.


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Taxation Issues Heavy import duties imposed on

multinational company by government.

Sol IKEA established multiple ventures withlarge no. of local suppliers(glass, wood,textiles, plastic etc.

Expensive product line Prices considered low in Europe and NorthAmerica, were higher than the average in

China.


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Sol IKEA built a number of factories inChina and increased local sourcing ofmaterials.

Through this company lowered itsprices by more than 60 percent.


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fl t p ck style to re dy to use famous for flat-pack furniture

IKEA realized that Chinese people

hate the do-it-yourself concept. Sol: At first IKEA hired local

professional then it switched to

assembled furniture.


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Product Image transition In Europe - stylish furniture at

prices so low that everybody can

afford it. In China - western-styled

aspirational brand for the middle-

class population Not targeting for cost leadership.


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Store location In Europe & US In the suburbs,

next to highways so that access by

car is easy. In China outskirts of cities, next

to rail networks as most customer

use public transport.


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Promotional methods IKEA uses catalogs as main

marketing tool, but catalog were

easy tools for piracy localproducer.

Copy cat competitors

In China Advertising on socialmedia as Weibo.


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Eco friendly technologies Since 1999, IKEA has been working

on becoming eco friendly. Charging for plastic bags

Asking suppliers for green products. Using renewable energy in stores. But these practices were difficult to

implement in china. and had risk of

increasing costs. Sol IKEA decided to slow down

process of green revolution.


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2012 sales of 5.98 billion Chinese yuan. 21% increase than that of 2011

19% increase in sales in 2011 than that of2010


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IN EUROPEIKEA is planning to open 10 new stores ineurope.

Russia is a potential market for IKEA becausethe economy of Russia is expanding.

Germany is a largest market of IKEA.


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IN NORTH AMERICASAmerica market can be tough for IKEA as there

Are big competitors like

FORTUNEBRANDS,JARDEN,MASCO exists.

IKEA planning to open 5 new store in USA.


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IN ASIAAsia is a large potential market for IKEA

IKEA is planning to enter in INDIA

CHINA,JAPAN and SINGAPORE is profitablemarket to expand.


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IN AUSTRALIAAUSTRALIA is a big market for IKEA.There isalways demand for ready to assemblefurniture.

IKEA increasing employees in there stores

IKEA is currently operating in all the states ofAUSTRALIA and planning to increase itsstores.


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ikea china .pptx