What impact will IKEA bring to Foshan furniture in

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What impact will IKEA bring to Foshan furniture industry

what impact will IKEA bring to Foshan furniture industry

january 22, 2015

[China paint information] affected by the downturn of the real estate market and the impact of e-commerce, the business of Foshan furniture store is getting worse and worse. Will the settlement of giant IKEA in Foshan make the competition in Foshan furniture stores white hot

IKEA: Foshan enterprises have become suppliers

"Foshan shopping mall is built according to the standard store model of 'self purchase of land and self construction of shopping malls', which is different from the rental site operation of Guangzhou Tianhe shopping mall. Therefore, it has a larger scale and more product types. It will have a self delivery area for goods and a richer sample room." Xulide, public relations manager of IKEA China, introduced

from the experience of IKEA settling down in Guangzhou and Shenzhen, IKEA has a great attraction to the end consumer market. Will this divert the passenger flow of local furniture stores? Xulide said that IKEA's products not only include furniture, but also have a large variety of household goods, which is different from the operation mode of Foshan furniture store

after IKEA settled in Foshan, will it cooperate with more furniture manufacturers in Foshan and bring them into the supply chain system? "In fact, many Foshan furniture enterprises are our suppliers. The goods they supply are sold to IKEA stores all over the world. My work is simple. We also hope to cooperate with more Foshan enterprises." Xulide said that IKEA implements a global procurement system, and IKEA Trading Company is solely responsible for the selection and management of suppliers. Under this system, Ikea will purchase globally according to the needs of product design, the origin of raw materials and the quality of suppliers. In other words, we will not look for suppliers locally because we are located in an area where we can learn about 12 through the appearance of the equipment

it is also understood that the shopping mall in IKEA China is also expected to be launched in early 2017

stores: worry more about the impact of e-commerce than IKEA

IKEA is coming. Will it be "worse" for Lecong home stores with poor overall performance recently

zhongyonghong, head of the operation center of Shunlian Furniture City, said that the impact was not significant. Shunlian furniture stores are not only in the domestic market, but also in the export market, covering mahogany, hotels, office and other professional furniture products. IKEA, on the other hand, has different positioning for small households, young consumers and mobile consumers. "It may divert a small part of the passenger flow, but basically there is no big impact." In zhongyonghong's view, e-commerce is far more worried about Shunde furniture store than IKEA

Chu Fuzhan, Secretary General of Foshan Furniture Industry Association, believes that the positive impact of IKEA's settlement in Foshan is greater than the negative impact, which will force local enterprises to improve themselves. The furniture market in Foshan is large in size and rich in variety. For major customers and export market, Ikea will not bring too much impact. On the contrary, local stores and furniture manufacturers can learn from IKEA, including how to gain insight into the needs of the end consumer market, how to bring unique attraction with design, and how to improve the management system. IKEA has set up a complete set of standards and systems from design, testing to sales, which are worthy of reference for Foshan enterprises

will IKEA's settlement in Foshan bring cooperation opportunities to local furniture manufacturers? Chu Fuzhan said that IKEA's procurement system puts a lot of pressure on suppliers, requiring that the quality meet the standards while keeping the price very low. "Many enterprises only improve their own influence by cooperating with IKEA and using their brands, and also take the opportunity to improve their own management."

consumers: local purchase of IKEA can save logistics fees

"finally coming!" Mr. Yuan, a citizen, said that in the past, he needed a very small wardrobe because of the small size of the house. He found many places but failed. Finally, he bought it at IKEA. "The formability of the 800 yuan wardrobe delivered to Foshan is 40% higher than that of the traditional ABS alloy, which costs more than 100 yuan." 1 once we add graphene to the resin yuan, we can avoid this freight when we buy it locally in Foshan. "

many other citizens were not too surprised by the settlement of IKEA, and thought that IKEA's small household products were well designed and worth buying. For example, IKEA would not choose to buy large household products. "A large piece like a wardrobe will still choose customization or other brands." Wu Li, a citizen who is decorating a new house, said

previously, the successful settlement of IKEA Guangzhou Tianhe shopping mall brought popularity to the business district of Guangzhou east railway station. At present, Wanda shopping malls and other supporting facilities have been settled near the financial high tech Zone. Will the settlement of IKEA help the popularity of the business district of the hot financial high tech Zone? Xukun, an entrepreneur in Nanhai, said he was optimistic about IKEA's contribution to the nearby business district. "IKEA itself can gather popularity, and has a good shopping environment and catering services, which is likely to divert passengers from other business districts."

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