IKEA China recently announced that it will invest more than 100 million yuan to expand the scope of investment, and is expected to launch more than 550 lower** products in fiscal 2024. This move is IKEA's second increase in investment after revealing its plan for fiscal year 2024 at the end of August last year to meet consumers' demand for higher value for money.
According to the explanation of relevant people in IKEA China, behind this increase in investment is a profound observation of changes in consumer demand. They found that consumers are paying more attention to value for money in their daily lives and shopping decisions, and they are also showing more diversified consumer needs. Therefore, IKEA hopes that through the best investment, more consumers can enjoy a better life with a lower budget on the premise of ensuring product quality.
This ** investment covers products in multiple scenes such as bedrooms, living rooms, and kitchens. For example, the original price of IKEA's Internet celebrity product nissafors trolley is 199 yuan, and the current price is 149 yuan; The original price of MAMM raised bed is 1799 yuan, and the current price is 1499 yuan; Classic cutlery oftast deep dish original price 499 yuan, the current price is 399 yuan. At the same time, some of the best-selling foods** in IKEA restaurants have also been downgraded.
In addition to the Chinese market, IKEA is also making ** adjustments around the world. For example, IKEA Germany announced that it would permanently stop selling 2,000 products, and cut prices to restore some items** to pre-pandemic levels or lower; Belgium's IKEA, which accounts for about a quarter of its total merchandise, has also seen price reductions on 2,600 products. In addition, IKEA Netherlands will reduce prices in 2024, with an average price reduction of 20%.
This move has also triggered the most competitive situation in the home furnishing industry. Many custom home furnishing brands have also launched low-price **. In this regard, IKEA China said that the low price is not a simple reduction or discount, but through process innovation and other ways to reduce costs, to achieve high cost performance and high quality-price ratio.
Behind the collective price reduction of home furnishing brands reflects the changes in the consumption environment, low prices not only attract the attention of consumers, but also bring more sales to the brand. Under the current economic pattern, consumers' requirements for products tend to decline, but the requirements for product quality have not decreased, and there is even a trend of improvement.
Overall, IKEA's increased investment is a positive response to changes in consumer demand, and it is also a way to improve the brand's competitiveness in the market competition while pursuing a better consumer experience. For consumers, it is undoubtedly a good thing to be able to buy more cost-effective products at a lower price. So, how do you think home furnishing brands should better meet consumer needs in the current consumption environment?