final report combination
MKT 5611 Consumer Behavior
Background
IKEA is a multinational company based in Sweden, and sells assembly furniture through their self-branded stores. It was founded in 1943, and as of January 2014 has generated over 28.5 billion Euros in profit. They are currently listed in Forbes’s list of 50 most valuable companies in the world. They offer a variety of products in relation to home furnishings, including tables, lamps, and entire kitchens. They are famed for allowing their customers to assemble the products themselves, but they still provide services in assembly and consulting for those who desire a hassle free experience.
IKEA is a worldwide corporation, currently operating in 46 countries with 364 stores. In Mainland China, IKEA has 16 stores in 13 cities. Also, in Hong Kong, Ikea has 3 department stores, in Sha-Tin, Causeway Bay, and Kowloon Bay respectively. They have mostly kept most of their retail formula intact there, such as a long aisle and emphasis on browsing, instead of salespersons, retaining their trademark “IKEA” store experience.
Competition in furniture industry is very intense in both Mainland China and Hong Kong. IKEA faces a lot of local furniture department stores in Mainland China, and low price furniture from Tao Bao. Meanwhile, the furniture industry in Hong Kong has shrunk in 2014 with most of the products being manufactured in the mainland in order for the companies to maintain a competitive advantage. With increasing awareness of deforestation, there is a strong trend of environmental and green furniture.
Furthermore, stronger regulation of building components have forced manufactures to become more careful about what they sell. With skyrocketing house prices, Hong Kong residents are encouraged to purchase compact but functional products.
Objective and focus of the study
The main objective of this research project is to gain a deeper and broader understanding of IKEA by conducting 12 depth interviews of
Background
IKEA is a multinational company based in Sweden, and sells assembly furniture through their self-branded stores. It was founded in 1943, and as of January 2014 has generated over 28.5 billion Euros in profit. They are currently listed in Forbes’s list of 50 most valuable companies in the world. They offer a variety of products in relation to home furnishings, including tables, lamps, and entire kitchens. They are famed for allowing their customers to assemble the products themselves, but they still provide services in assembly and consulting for those who desire a hassle free experience.
IKEA is a worldwide corporation, currently operating in 46 countries with 364 stores. In Mainland China, IKEA has 16 stores in 13 cities. Also, in Hong Kong, Ikea has 3 department stores, in Sha-Tin, Causeway Bay, and Kowloon Bay respectively. They have mostly kept most of their retail formula intact there, such as a long aisle and emphasis on browsing, instead of salespersons, retaining their trademark “IKEA” store experience.
Competition in furniture industry is very intense in both Mainland China and Hong Kong. IKEA faces a lot of local furniture department stores in Mainland China, and low price furniture from Tao Bao. Meanwhile, the furniture industry in Hong Kong has shrunk in 2014 with most of the products being manufactured in the mainland in order for the companies to maintain a competitive advantage. With increasing awareness of deforestation, there is a strong trend of environmental and green furniture.
Furthermore, stronger regulation of building components have forced manufactures to become more careful about what they sell. With skyrocketing house prices, Hong Kong residents are encouraged to purchase compact but functional products.
Objective and focus of the study
The main objective of this research project is to gain a deeper and broader understanding of IKEA by conducting 12 depth interviews of