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Ikea to cut prices of 250 items in China
Published on: 2020-08-28
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IKEA 02Ikea said on Wednesday that it will cut prices of 250 products, which account for about 5 percent of its total inventories in China, from Sept 1 as the Swedish furniture giant looks to further tap into the country's growing demand for quality lifestyle products.

Zhang Lina, vice-president of Ikea China, said the price reductions will lead to cost savings of about 200 million yuan ($29 million) for Chinese consumers. At the same time, the firm will also launch 2,000 new products in China for the 2021 fiscal year, with 700 having sustainable or eco-friendly characteristics, said Zhang.

The company will have a green approach to deliveries in China. While Ikea uses new energy vehicles in five Chinese cities for deliveries at present, it will have all its goods delivered by NEVs in 17 Chinese cities from next year, said Liu Rui, vice-president of Ikea China.

IKEA 01Zhang said the new pricing policy and the company's increasing emphasis on sustainable development are efforts to gauge the changing demands of Chinese consumers, which have become more noticeable since COVID-19 epidemic.

Global consultancy KPMG said in a recent report that 51 percent of the 1,027 Chinese respondents in a survey considered high cost as the top priority when they make a purchase decision.

Bruno Lannes, China partner of global market consultancy Bain &Co, said the trend of Chinese consumers focusing more on cost started to take shape in 2019 and the trend has become more noticeable after the COVID-19 epidemic.

But analysts from Shenzhen-based market consultancy ASKCI said Chinese consumers' demand for lifestyle products will increase as they have stayed at home for a long period due to the epidemic. The momentum is expected to carry on and the Chinese furniture industry will see exponential growth in the second half of the year, they said.

Ikea opened seven new stores in China over the past 12 months, a pace unprecedented, said Francois Brenti, a vice-president of the company in China. It opened a smaller scale Ikea store in central Shanghai last month. According to Brenti, the company will open more such stores in the first-tier Chinese cities and in the Guangdong-Hong Kong-Macao Greater Bay Area. More traditional stores that are usually located in the exterior areas of cities will be opened in Fuzhou, Kunming, and Nanning, he said.

In March, the company launched an online flagship store on e-commerce platform Tmall, with the number of online followers exceeding 1 million in a week's time.

To fuel the rapid growth of Ikea in China, it will add at least 2,000 new jobs in the country, mainly to help build the new stores and better serve the company's digitalization strategy, said Brenti.

宜家明年将大降价?!宜家在中国让利2亿,250款商品将在明年降价!

宜家中国区副总裁张丽娜在2021财年启动会上称,2021财年宜家将会有超过250款产品进行降价,这相当于2亿的让利,要让消费者知道好的生活是不需要大的支出的。

在此背景下,宜家2021年要在中国发力了。中国副总裁弗朗索瓦•勃朗特介绍称,这次的发力将会进行线上线下的融合,提升宜家的可触达性。同时尝试更多的创新数字化解决方案。

另一方面,宜家的线下渠道门店将会进一步增加,宜家将会尝试多样化门店,在上海和大湾区内探索小型商场和城市店的模式。

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