Global branding in emerging markets - Ikea tolerates window shoppers
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A big hat tip to Steve Storey for spotting this fantastic video from the FT on the Ikea store in Beijing. For those who you with an FT.com subscription which gets you past the paywall, this is one to show the students!
Ikea is a global brand - but can it succeed in China? This fascinating video from the FT examines why Ikea’s stores in China are full of people with no intention of buying! The busiest Ikea store in the world is in Beijing China, but the checkouts are quiet!
Many shoppers just come to the store to taste a western lifestyle, have a nap, or take a stroll. In the long-term, though, Ikea expects these window-shoppers to turn into consumers - when they finally enter the Chinese middle class and acquire some disposable income. Protection of Ikea’s intellectual property is also an issue. The store has many visitors whose sole purpose is to copy the details of products on display so that they can go produce lower-cost replicas!
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