Basic information Founded in 1943
English name: IKEA
Number of employees: 104,000 (2006)
Promotion slogan: Life, Start at Home
Home, the world’s most important local company (IKEA) Introduction IKEA[2] was founded in Sweden in 1943. "Creating a better daily life for most people" is the IKEA company The direction we have been working towards since its inception. The IKEA brand has always been associated with improving people's quality of life and adheres to the business purpose of "providing as many customers as possible with affordable, well-designed, functional and low-priced home furnishings".
While providing a wide variety of beautiful, practical and affordable household products, IKEA strives to create a business model centered on customers and social interests, and is committed to environmental protection and social responsibility issues. Today, the Swedish IKEA Group has become the world's largest furniture and household products merchant. Its sales mainly include seat/sofa series, office supplies, bedroom series, kitchen series, lighting series, textiles, cooking utensils series, house storage series, children's product series, etc. 10,000 products.
Currently IKEA[1] has 240 shopping malls in 34 countries and regions around the world, 8 of which are in mainland China, respectively in Beijing, Shanghai, Guangzhou, Chengdu, Shenzhen, Nanjing, Dalian, and Shenyang. . IKEA's procurement model is a global procurement model. It has established 16 procurement trade areas around the world, three of which are in mainland China: South China, Central China and North China. At present, IKEA's purchasing volume in China accounts for 18% of the total, ranking first among IKEA purchasing countries. According to the plan, by 2010, IKEA will have 10 retail malls in mainland China, and the required storage capacity will be expanded from the current 100,000 cubic meters to more than 300,000 cubic meters. China has become IKEA's largest purchasing market and one of the most important spaces for business growth, playing a pivotal role in IKEA's global strategy.
IKEA’s procurement model
IKEA’s procurement model is a global procurement model. IKEA's products are purchased from various trading areas and then shipped to 26 distribution centers around the world and then delivered to IKEA stores around the world. IKEA's purchasing philosophy and evaluation of suppliers mainly include four aspects: continuous price improvement; strict supply performance/service level; good quality and healthy products; environmental protection and social responsibility (IWAY-The IKE Away of Purchasing) home furnishing products - IKEA's requirements for purchasing home furnishing products, which is IKEA's policy on suppliers regarding environmental protection, working conditions, child labor and forest resources).
IKEA has established 46 trade representative offices in 16 sourcing trade areas around the world, located in 32 countries. The staff of the trade representative office evaluates suppliers according to IKEA's best procurement concepts, coordinates between the headquarters and suppliers, implements product procurement plans, monitors product quality, and pays attention to suppliers' environmental protection, social security systems and safe working conditions. . Today, IKEA has approximately 1,300 suppliers in 53 countries around the world. On December 30, 2008, in the "2008 World Brand Value Laboratory Annual Awards" selection event held by the world's authoritative brand value research institution - World Brand Value Laboratory, IKEA won the "2008 World Brand Value Laboratory Annual Award" with its good brand impression and brand vitality. "China's Most Competitive Brand List" award has won widespread praise from consumers. [Edit this paragraph] IKEA's brand religion In order to emphasize the democratic concept of alliance with customers to employees, Kamprad wrote "The Faith of a Furniture Merchant" in 1976, which became the IKEA Bible. He reiterated again and again; Part of creating a better life for most people involves breaking away from the limitations of status and tradition and becoming a freer person. To do this, we have to be different. Even in the 1990s, when IKEA stepped up its pace of global development, it also sought to maintain its original corporate culture. Kamprad said directly: IKEA has always adhered to its important traditions, because this is not Swedish culture, but company culture. Otherwise, employees from other countries will not feel that they belong to IKEA. In addition to bringing simple, beautiful and reasonably priced products to the global market, IKEA also spreads the Nordic spirit of equality and freedom everywhere.
For young people, the spiritual power of IKEA is more lethal than the practicality of its products. No one can ignore this general trend: everyone desires to be the protagonist and the dominant one.
Brand Religion
In terms of brand strategy, IKEA also goes in the opposite direction. In September 2005, IKEA ranked 42nd on the list of the world's best brands jointly launched by Business Week and Interbrand, with a brand value of US$7.817 billion. Prior to that, IKEA had been ranked among the best brands in the world for three consecutive years. of the top 50. And incredibly, IKEA invests very little in advertising.
In fact, the real core of the IKEA brand is to allow customers to become brand communicators, rather than rigid advertising. Just like what a British media said about IKEA: It is not just a store, it is a religion; it is not selling furniture, it is building a dream for you. IKEA is well versed in the art of word-of-mouth communication, and operates operations that may seem primitive and clumsy, but are actually efficient and perfect. IKEA is the church of this brand religion. The 223 IKEA stores around the world are churches walking everywhere. IKEA employees are the clergy of this brand religion. After systematic training and value edification, they transform A set of life attitudes and values ??are conveyed to the church members, the more than 300 million customers who enter IKEA every year.
In order to make more customers become IKEA brand evangelists, an important strategy of IKEA is to sell dreams rather than products. In order to do this, IKEA not only provides a wide range of products with exquisite design, practicality and low price. products, and also connect products with public welfare undertakings. About 10 years ago, the IKEA Group began to participate in environmental protection issues in a planned way, covering aspects such as materials and products, forests, suppliers, transportation, and shopping mall environment. Now, IKEA is the first to pass forest certification, which is an internationally popular ecological and environmental certification that includes forest management certification and chain of custody audits. IKEA even stated that it would not ignore social phenomena such as child labor, racial discrimination, and the use of illegal wood from virgin natural forests.
The IKEA catalog has always been the main force that IKEA relies on to spread its brand. Many people liken it to a book with more print runs than the Bible. In fact, its communication effect is comparable to that of the Bible. Bible". This brochure, born in 1951, has obvious mail-order characteristics. But Kamprad gradually transformed it into a preaching manual for a new life. These catalogs not only list photos and prices of products, but are also carefully designed by designers to comprehensively represent IKEA products in terms of functionality, aesthetics, etc. features where customers can find inspiration and practical solutions for home furnishing. Every year in early September, at the start of its new fiscal year, IKEA distributes a beautifully crafted catalog to consumers for free. In 2005, the IKEA catalog sold 160 million copies in 25 languages ??and 52 versions.
IKEA also has a unique strategy, adopting an integrated brand model, that is, owning brand, design and sales channels. In terms of product brands, IKEA divides the company's more than 20,000 products into three major series: IKEA office, home storage, and children's IKEA. With the strong support of the IKEA brand, more than 20,000 products have established their own brands. From SANDOMON sofa to EXPEDIT bookcase; from FAKTUM cabinet to MOMENT dining table; as small as a JULEN champagne glass worth one yuan. Low price
Low price is the cornerstone of IKEA's ideals, business philosophy and concept. The basic idea behind all IKEA products is that low prices will make a wide range of beautiful and functional homewares accessible to everyone. We continually strive to make everything we do better, simpler, more efficient and always more cost-effective.
Swedish Tradition
Swedish design methods are also the basis of IKEA’s product range. Until now, IKEA product ranges have been developed in Sweden. Through the choice of colors and materials, the IKEA product range, although not the most popular, is modern, practical, still beautiful, people-oriented and child-friendly, representing a fresh and healthy Swedish lifestyle. These methods are closely linked to IKEA's origins in Sm?land, southern Sweden, where people were known for being hardworking, frugal and making the most of the limited resources they had.
IKEA has developed steadily and rapidly. In 60 years, it has developed to 180 chain stores around the world, distributed in 43 countries, employing 70,000 employees. Many. In fiscal year 2003, IKEA achieved sales revenue of 11 billion euros and net profit of more than 1.1 billion euros, becoming the world's largest home furnishings retailer.
IKEA's marketing strategy is a highlight of its operation and management, and there are many things worth learning from. Through the study of its marketing strategy, many aspects of its operation and management can be connected in series.
1. IKEA’s product strategy (Product)
1. Accurate product market positioning
IKEA’s business philosophy is to “provide a wide variety of products that are beautiful, practical, Home furnishings that ordinary people can afford.”
From its early days, IKEA has decided to stand with the "majority" of home furnishing consumers. This means that IKEA caters to people with many different needs, tastes, dreams, aspirations and financial resources who want to improve their homes and create a better everyday life. In response to this market positioning, IKEA's products are positioned as "low-price, exquisite, and durable" home furnishings.
In developed countries such as Europe and the United States, IKEA positions itself as a home furnishings provider for the public. Because of its high quality, low price, new style and good service, it is welcomed by the majority of low- and middle-income families.
But after arriving in China, the market positioning has been adjusted to a certain extent, because: although the Chinese market is broad, the general consumption level is low, the competition among the original low-price furniture manufacturers is fierce and close to saturation, and the foreign players in the market High-priced furniture is rarely in demand. So IKEA turned its attention to the relatively wealthy classes in big cities. IKEA's market positioning in China is "white-collar workers who want to buy high-end goods but cannot afford high prices." This kind of positioning is very clever and accurate, and has achieved relatively good results for the following reasons:
As a global brand, IKEA satisfies the psychology of Chinese white-collar workers;
Every corner of the IKEA store The furniture and business philosophy are full of foreign cultures;
IKEA furniture has the characteristics of customers assembling it by themselves, free large promotional publications, and free purchase.
The above has attracted the attention of many intellectuals and white-collar workers. Coupled with the excellent product quality, IKEA has not only attracted more new customers, but also stabilized its fixed group of repeat customers
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IKEA's product positioning and brand promotion are so successful in China that many Chinese white-collar workers regard "eating McDonald's, drinking Starbucks coffee, and using IKEA furniture" as a fashion.
In 1997, IKEA began to give prominence to children's needs for household items, because children also have a great demand for household items, and competition in this field is not fierce. In order to design products more suitable for children's needs, IKEA collaborated with two teams of experts to develop products. Child psychologists and professors of children's games help IKEA design and develop products aimed at cultivating children's motor skills and creativity. At the same time, IKEA uses children to help them select winning products.
In the IKEA showroom, a children's play area, a children's model room, and children's food are specially prepared in the restaurant, all of which are loved by children and make them more willing to patronize IKEA.
2. The product style is unique and beneficial to sales
The products sold by IKEA are all independently designed by IKEA, and the product style is unique. IKEA emphasizes the unique style of its products that are "simple, natural, fresh and well-designed";
IKEA originated from Sweden (the forest country) in Northern Europe, and its product style of "simple, fresh and natural" also adheres to the Nordic style . Nature and home both occupy an important position in people's lives. In fact, Swedish home style perfectly recreates nature: full of sunshine and freshness, yet unpretentious at the same time.
The style of IKEA home furnishings is the condensed history of Swedish home design culture, and Swedish home design culture has a long history: at the end of the 19th century, artists Carl and Karin Larsson combined classical style with Swedish folk style. They created A model of Swedish home design that has been passed down to this day; in the 1950s, modernism and pragmatism styles developed in Sweden.
Today, what we see on IKEA products are: modern but not fashionable, practical but novel, people-oriented, and embodying the ancient tradition of Swedish home furnishings in many aspects.
Go into the IKEA store and taste it carefully. IKEA’s home products, whether they are individual products or displayed as a whole, are simple, natural and ingenious, from Robin beds, Bisk tables to Banger cups. Tools are both well-designed and beautiful and practical. Compared with household products from other manufacturers, the impression given by IKEA is that IKEA is a collection of many of the above-mentioned advantages, and the combination of the above-mentioned advantages is IKEA! And this style of IKEA can indeed touch the hearts of most consumers and arouse people's desire to buy.
This style of IKEA runs through the entire process of product design, production, display and sales. In order to implement this style and hope that its own brand and its own patented products can eventually cover the world, IKEA has always insisted on designing all products by itself and owning its patents. Every year, more than 100 designers work crazily day and night to ensure that " All products, all patents."
In addition, IKEA’s simple and natural product style also helps form another advantage of IKEA, which is low price, which we analyze in IKEA’s price strategy.
3. Products are beautifully designed and durable
IKEA has always emphasized that its products are beautifully designed, practical and durable.
Of course, it is not difficult to simply design beautifully, but it is very difficult to achieve exquisiteness, practicality, and high quality at a low price.
IKEA has a large number of excellent designers to ensure the design of IKEA household products. Not only are they experienced and able to work closely with experienced manufacturers to find ways to make the most of raw materials, but they also know how to produce low-cost furniture while still maintaining original design creativity.
IKEA's designs are original and practical. For example, IKEA's "Four Seasons Quilt" is three quilts in one. The first layer is a cool and comfortable summer quilt, and the first layer is a medium-warm spring and autumn quilt. You can also put two layers together and that's a warm winter quilt. This design from IKEA is indeed unique: before seeing this design from IKEA, who would have thought that it could be designed to match a quilt like this?
Another example is the MTP bookcase. This bookcase was designed by IKEA consultant and designer Marian Grabinski in 1963. This bookcase style is both modern and classic, beautiful and practical, and has brought huge profits to IKEA. It can be called a model of IKEA design and has attracted many manufacturers over the years. imitate.
The durability of IKEA household products is also a major feature: for example, sofas can be squeezed hundreds of thousands of times, cabinet doors can be opened and closed continuously for decades, etc.
Of course, making products exquisite and durable requires efforts in many aspects, from product design to material selection to process flow, etc., but IKEA has indeed done it.
4. Extensive product series
IKEA has a wide product series, with more than 10,000 products for customers to choose from. Basically, customers with any taste can buy home products they need for their home at IKEA.
The "wide range" of IKEA product series has the following meanings:
First of all, it is the wide range of functions. Customers no longer need to travel to different specialty stores to purchase homewares. At IKEA you can find everything from living room furniture, toys, frying pans to tableware, cutlery, office furniture and green plants. In a word - you can find all practical household items at IKEA, and customers don't have to search between various home furnishing stores. Running west.
Secondly, there is a wide range of styles. People with different tastes can find what they love here. But IKEA's products are not all-encompassing. IKEA does not have products that are too extreme or exaggerated. IKEA provides products needed to create a comfortable home environment.
Also, with proper coordination, a wide range of functionality and style can be achieved simultaneously. No matter which style the customer prefers, there will be an armchair to match the bookcase, a bookcase to match the new folding table, and a new folding table to match the armchair. Therefore, IKEA's "wide range" has many meanings.
2. Low price strategy (Price)
IKEA's business philosophy is to "provide a wide variety of household products that are beautiful, practical and affordable for the common people."
This determines that IKEA must maintain low prices on the basis of pursuing beautiful and practical products. In fact, IKEA also does this: IKEA has always emphasized the low price strategy.
3. Unique style of "store display" channel strategy (Place)
1. Set up own store control channels
2. Successfully make IKEA stores become A symbol of a lifestyle
4. Promotion strategy (Promotion)
Marketing strategy of catalog display
Catalog display is an important part of IKEA's promotion strategy , which greatly promoted the sales of IKEA products. In 1951, IKEA published its first catalog. Since then, every year in early September, at the beginning of its new fiscal year, IKEA will distribute a beautifully produced catalog to consumers for free.
IKEA now has 7 stores in mainland China: Beijing, Shanghai, Chengdu, Guangzhou, Nanjing, Shenzhen, and Dalian. The new store in Dalian opened on February 19, 2009. [Edit this paragraph] IKEA in China IKEA has 7 branches in mainland China, respectively in Beijing, Shanghai, Guangzhou, Chengdu, Shenzhen, Nanjing and Dalian. On July 27, 2009, as IKEA and Ningbo Yinzhou District Government With the signing of the contract, the eighth IKEA branch will soon be opened in Ningbo. The project is initially expected to require an investment of US$90 million. The first phase of the project will require about 80 acres of land acquisition and a construction area of ??100,000 square meters. A groundbreaking ceremony will be held at the end of the year and it will officially open to the public in 2011.
What is IKEA’s secret? Many people believe that IKEA's success lies in the fact that it creates a special shopping experience, such as store layout, no salespeople, Swedish food, and customers assembling furniture themselves. But these are just superficial phenomena. A crucial factor is that it sells high-quality goods at low prices. This is its weapon to conquer the market. IKEA sells furniture at an average price that is 30% to 50% lower than its competitors. At the same time, it continues to cut prices. On the contrary, the prices of many furniture retail companies tend to increase over time.
IKEA's slogan is: "Valuable low prices." Its goal is to keep the price of its products not too high, but not to make customers think its products are cheap. To achieve this, reducing costs has become the only way. In fact, cost reduction runs through the entire process of IKEA products, from product conception, design, production to transportation and marketing. Ingvar thinks about cost all the time.
For this reason, he once said: "The waste of resources is a fatal mistake at IKEA. A target plan without cost accounting will never be accepted."
To this end, Ingvar continues to save and adopt new measures to reduce costs.