IKEA launched the online shopping service in China,logistics or as the biggest problem

Enter "IKEA Shopping" on a treasure, came out yellow diamond store over 500. In late April, these businesses ushered in the bad news: IKEA announced later this year, "shock", launched online shopping service in parts of China.

Xu Lide, public relations manager of IKEA China, said: "E-commerce to flourish in China, e-commerce will be a very good complement IKEA retail form, thereby helping IKEA to enter the second and third tier cities in China." For distribution charges online shopping services, Ikea China said that currently still under discussion. As will choose which online shopping cities as a pilot, Xu Lide said, "It is not convenient to disclose."

For IKEA, "shock", many people question: Is it too late? In China, the 12 original IKEA established OEM business Bao Tuan "Jiayi United States" as early as 2012 "double October" day record of 200 million in sales. In this regard, home improvement Institute chief expert Chinese electricity supplier analysis: "Ikea is not a business it was to follow suit now conduct electricity business operations in China, both may be out of his own strategic considerations, it may indeed be in its leadership. decision-making with a lag. "

"For IKEA, the online shopping will face the risk of return, which will increase the cost of warehousing and logistics IKEA, but also relates to customer satisfaction commodity issues, which is a challenge that must be addressed IKEA."


Cake too big, can not resist

"Speaking of the development of Ikea, it is quite conservative." Tang comment. In the home industry, IKEA's sales has always been to "traditional" famous. Since entering China in 1998, IKEA has been to line the store shopping experience as the core, the uncle went to Ikea "rub sleep," Mother went to Ikea "rub coffee" story become a legend. In contrast, the online sales Ikea has refused - even the official site in 2015 broke through the 53 million page views people, can only provide products, can not be purchased directly.

In 2013, Chinese Internet users opened the "double 11" Hand chop carnival curtain. That year, Britain's "Financial Times" published a story about the "IKEA will expand online sales", the domestic media compile forwarding, we accordingly guess: maverick IKEA finally do the electricity supplier?

But since then, the road to "shock" the IKEA return to silence. Until the summer of 2015, suddenly announced that IKEA will conduct electricity business operations in 13 European markets. In October, the Chief Executive Officer Peter Waugh 阿格尼夫杰 IKEA IKEA president acknowledged online business behind, IKEA announced 2015 earnings also confirmed this - this year, IKEA's online sales platform only 13 for the Group of 1 billion euros in sales, 3% of total revenue. Peter said that the next five years, IKEA will focus on the development of e-commerce, online sales will increase to 50 billion euros, accounting for 10% of sales performance.

China Mengjin suddenly soared household electricity supplier market for IKEA unavoidable. According to First Financial Business Data Center (CBNDate) "Chinese home-style insight into consumer preferences," the report, between 2013 and 2015, the size of China's online home expanded 2.3 times the annual volume growth rate remained at around 40%.

At the same time, according to Taobao and Lynx data, although there is still a second-tier cities is online household consumption "main force", but three or four lines of online home consumers are rising at the end of 2015, it accounted for It has increased to 37% of total household electricity supplier sales. Such a huge market, IKEA can not turn a blind eye. Xu Lide said in an interview that IKEA headquarters finally realized that "the number of Chinese Internet users, the number of consumer demand."

More important factor from the Chinese government on the level of electricity supplier vigorously. By 2015, the State Council issued the "Guidance on facilitating cross-border e-commerce healthy and rapid development" and proposed measures to optimize the customs supervision, inspection and quarantine supervision to improve policies and measures to explicitly regulate the import and export tax policies, improve the management of e-commerce payment and settlement provide financial support and other financial support measures in five areas.

First Capital chief investment officer Zhang Cuixia Die Zeit correspondent, said: "IKEA saw the Chinese electricity supplier to develop and promote the government's support, it is now doing in China electricity business is in line with the trend of the times."

Problems faced: logistics who do? Shipping how to count?

2015 IKEA has been rumors China will launch online sales platform, but then responded by saying Xu Lide, IKEA will be ready to launch e-commerce. Experts have pointed out, logistics, warehousing is one of the important reasons for the delay in IKEA has launched online sales.

The first is how to transport problems. Household commodities belong, sending pieces with size and weight increases, high freight costs, a lot of furniture and electricity providers have opted for third-party logistics cooperation. Xu Lide expressed, "IKEA will also provide logistics services and third parties."

How to ensure the stability of third-party logistics cooperation? March 2013, IKEA and logistics vendors claiming dispute occurred Guangzhou delivery system chaos. In this regard, Xu Lide said the IKEA China will selec some pilot cities for online shopping, collecting experiences and problems of logistics cooperation. Finally, online sales and then extended to 18 points of sale nationwide.

After arriving home depot also face how to extract, installation problems. "Buy online IKEA, home delivery and installation will cost money." Xu Lide representation. But now, the relevant rules "is still being worked out." On-site installation services, at present, although the vast majority of second-tier cities home company offers free on-site installation services, but according to the Lynx business information, in Heilongjiang, Xinjiang this frontier province, home installation fee once reached 900.

But second-tier or even three or four lines of urban household electricity supplier is precisely the fastest growing areas, in order to cover these cities, Ikea announced the launch of a new store in China form part of the third and fourth tier cities: "Ordering delivery center." Here, consumers can use the IKEA Web site or catalog purchase products, but still need to take the time to wait for delivery or their delivery. In May this year, Ikea's first "delivery Order Center" will open in Wenzhou, Zhejiang Province. This is seen as a warm-up operation in the industry of its online shopping services.

"For IKEA, the online shopping will face the risk of return, which will increase the cost of warehousing and logistics IKEA, but also relates to customer satisfaction commodity issues, which is a challenge that must be addressed IKEA." Zhang Cuixia analysis. In fact, home is truly one of the highest rates of return field of electronic business. Last year's "two-eleven" between, home return rate of 10%, far higher than the department store merchandise.

Removing the logistics problem, many people are concerned about IKEA's online sales price will not be cheaper than the store. IKEA insiders expressed, "IKEA prices of all products will be consistent."

"I do believe that IKEA electricity providers, online and offline to maintain a consistent price, in order to move towards the integration of online and offline. Electricity supplier not just sell things online, such as the United States, Wal-Mart, the line is an extension of the line, but sales and marketing experience is different. this is also a trend in the future to do electronic business. "Tang said.

"Beyond class shopping malls"

Like Nordic leisurely attitude to life, to enter China 18 years ago, IKEA's expansion rate almost "turtle speed": to open an annual average. As of 2016, a total of IKEA in China has opened 18 stores - into the Chinese year of "Gymnasium", branch has been opened to 121. IKEA said that starting this year, will accelerate store expansion to three stores a year.

Currently, 18 IKEA stores located in the north of Guangzhou-Shenzhen and other Chinese second-tier cities, and the location is in the city's downtown area. In the Shanghai store, IKEA invested nearly $ 60 million. China IKEA store IKEA area is also much higher than other countries in the area of ​​the store - the world's largest IKEA in 10 shopping malls, China accounted for eight. By 2015, the entire restaurant IKEA China received a total of 31 million customers, almost 3.2 times the population of Sweden in 2014.

To produce "everyone has a sense of design affordable products" as the goal IKEA has become a "beyond class mall" on the Chinese people, especially the younger generation of huge life changes, they represent the Nordic simple style has become a domestic mainstream home aesthetic. IKEA has gradually turned from a symbol of petty bourgeoisie class into a working-class can afford a home. According to "China's home-style insight into consumer preferences," The report shows that 2015 national household consumption online orders, total orders accounted home modern minimalist style and European style of more than 7 percent. IKEA earnings report also showed that the year 2014, total sales of the IKEA Group rose 5.9% to 28.7 billion euros, of which the Chinese market growth is most evident.

IKEA is also facing rapid development of quality dilemma. In 2011 alone, IKEA's products for four recall. In 2009--2011 three-year period, according to incomplete statistics, IKEA announced the recall of the products in question amounted to at least 15 species. Some experts said that cheap IKEA products led to its foundries by looking for cheap materials to maintain production.

"The Chinese market for IKEA brought tens of millions of consumers, but also to the traditional brand from the Nordic IKEA more dynamic. Chinese consumers on the quality and price requirements, the fierce market competition, have prompted us to constantly updat products, lower prices, so that more Chinese people can afford. "Xu Lide said.