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IKEA "electric shock", who should tremble in the furniture industry

February 15, 2022


IKEA recently released: In all countries with IKEA physical stores, IKEA will begin to develop e-commerce business. Will support online orders and deliver goods to customers.
At present, IKEA's self-wired platform in the Chinese market is also being planned, but the launch time has not yet been determined.
In the face of the impact of the Internet and e-commerce, the heart of traditional enterprises is fear, and IKEA will not change.


Two obvious defects of IKEA
First, its expansion has been slow. As a purely private company with “not bad money”, IKEA has only opened stores in first-tier cities, and the number of stores is not too much, which limits the sales of branded products.
Second, the traffic volume of its shopping malls is too large, and it is crowded for a long time. This leads to the fact that companies that face the same consumer groups as IKEA can take advantage of them and successfully divert a considerable number of consumers.
In recent years, there have been many IKEA furniture in online auctions, and some have been purchasing IKEA business. IKEA has participated in e-commerce activities in these indirect forms.
IKEA doing e-commerce is definitely a good thing for consumers, but for some furniture companies, the blow is catastrophic.
Which types of enterprises will be affected by the "IKEA" electric shock
The first category of enterprises that have been fatally impacted by IKEA's "electric shock" is necessarily a reference or copy of the "IKEA" type of IKEA.
IKEA's previous turtle expansion was the soil on which these companies depended. Even if IKEA slowly accelerated its expansion in 2012, such companies still dominated. However, if IKEA is stationed in the e-commerce platform, it is difficult to guarantee whether these companies can still be independent.

The development of e-commerce by IKEA may also lead to certain companies that are targeting the same type of consumer groups in IKEA.
E-commerce has flourished for several years, and IKEA has always insisted on operating only offline. In the case of a 30% increase in page views, the store's traffic has only dropped by 1%. IKEA's compacted sound pressure may cause pool fish to squeeze. Compress the living space of these companies with similar business scope.
Take a simple style and be a corporate alarm for young consumers.
In addition, IKEA's development of e-commerce will inevitably seize the market that its previous stores have not radiated, such as the furniture market in second- and third-tier cities.
IKEA develops e-commerce platform, implements nationwide distribution, and enlarges the sales of radiation surface, which will definitely affect the regional furniture industry that cannot radiate services before.
To develop e-commerce, IKEA can expand its product audience, but how to ensure online and offline price consistency, product quality and logistics distribution is also a problem that IKEA needs to solve.
Once IKEA "electric shock", furniture companies do not seek a way out as soon as possible, they can only ask for more happiness.


For more information on China's furniture industry, please pay attention to the official website of Xianghe Furniture City ().
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Author:

Ms. Lucia Peng

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+8613531888018

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