DISTRIBUTION IKEA always maintain their readymade strategy on their products which can be easily assemble by customer or do it yourself

April 7, 2019 Critical Thinking

DISTRIBUTION
IKEA always maintain their readymade strategy on their products which can be easily assemble by customer or do it yourself (DIY) concept to all of their shops domestic and international including China. According to Ulf Smedberg the IKEA marketing manager in China explained that IKEA stores at their local and foreign European countries usually open far away from the city area in the suburbs next to highway so that it is easy access by car. As for China it not the same and need to be change. In China the location need to be different because not all Chinese customer afford on owing a car. According to (USCBC, 2004) mentioned that only 20 percent of visitors in Shanghai have cars.
Assembling IKEA products by themselves are famous among European countries and United States because it save more money as labour cost are very high at the western countries. While in China they prefer the furniture are already finished installed. As labour cost in China are far cheaper which indicated that Chinese customer prefer using the assemble services rather than assemble themselves.