IKEA’s Marketing Strategy

Posted: August 25th, 2021

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IKEA’s Marketing Strategy

11-9 IKEA in China

In 2018, IKEAcelebrated its 20th year of operating in China marking a significant growth in structure and performance in this country. Within the 20 years of operation, every business strategy put in place by the marketing team has yielded better results (Zhuoqiong). For instance, the rate of expansion has almost doubled from a single store to 24 outlets in China. In the 2017 financial year, IKEA realized the high revenue in China representing a 14% increase from the previous fiscal years and earned about 13.2 billion yuan (Zhuoqiong). Inspired by the financial success, IKEA will continue expanding its business in this county. In an exclusive interview, IKEA’s two-decade Chief Executive Officer Jesper Brodin attributed the exceptional success of the company in China to its willingness to embrace the newest technologies (Jing). By providing better shopping experiences to its customers, IKEA’s turnover has steadily increased by an annual rate of 3.5% to a net worth of 34.1 billion euros (Jing). From the data above, it is clear Kamprad’s decision worked.

11-10 IKEA’s Standardization in Global Market

IKEA’s rate of expansion since its inception in 1958 has been exceptional thanks to its standardized marketing strategy. As a merchandiser, IKEA has made sure its product range is similar everywhere irrespective of the environment and country of operation (Shoulberg). However, while the company has consistently outgrown some of its competitors based on the number of stores it owns globally, one thing has remained outstanding, its global marketing approach (Shoulberg). From a single store, the business has flourished, and it now has outlets in 37 countries (Burt et al. 183). In its new markets, IKEA has followed its traditional pattern of internalization. As it enters new states, first it chooses countries with related language and traditions and then expands to different places (Burt et al. 183). Such decisions have made IKEAone of the most successful companies in the retail sector.

Works Cited

Burt, Steve, Ulf Johnson, and Asa Thelander. “Standardized Marketing Strategies in Retailing? IKEA’s Marketing Strategies in Sweden, the UK and China.” Journal of Retailing and Consumer Services, vol. 18, no. 3, 2011, pp. 183-193, https://pdfs.semanticscholar.org/5f4f/166a0f637bc3ce37ba955da6d081ceb6c0ee.pdf. Accessed 12 Apr. 2019.

Jing, Shi. “Ikea Stepping into a New Digital World.” China Daily, 20 July 2018, global.chinadaily.com.cn/a/201807/20/WS5b5148dfa310796df4df7a4b.html. Accessed 11 Apr. 2019.

Shoulberg, Warren. “Why Ikea Succeeds Around the World While Other Retailers Falter.” Forbes, 31 July 2018, www.forbes.com/sites/warrenshoulberg/2018/07/30/put-another-stamp-on-the-ikea-passport/#5e2505463f7c. Accessed 11 Apr. 2019.

Zhuoqiong, Wang. “Buoyant Ikea Gears Up for More Store Expansion in China.” China Daily, 18 Aug. 2017, www.chinadaily.com.cn/business/2017-08/18/content_30763750.htm. Accessed 11 Apr. 2019.