Ikea is grappling with waning interest in the Chinese market, where consumers prefer visiting the stores for the ambiance and the restaurant rather than for purchasing furniture. Despite attempts to win back customers with low pricing strategies and a blend of online and offline sales, the outcomes remain disappointing. The stores are still perceived as comfortable, well-appointed spaces where people enjoy spending time, but competition is on the rise and many consumers ultimately opt for brands that offer a better value for money. Or as the Chinese website Zhongguotong puts it: 'Ikea only does well as a poor man's canteen, where you can eat for next to nothing.'
Photo: Dreamstime.
Since the opening of the first store in 1998 in Shanghai, where Ikea initially benefited from the growing housing market, the interest of Chinese consumers has gradually declined. Today, the store design is found confusing and cheaper alternatives are available.
Ikea is still trying to attract customers with price reductions and a new store concept, but these strategies have had little effect so far.
Source: Chinasquare
'Consumers prefer browsing there rather than actually purchasing'