The package design of the IKEA furniture is simple and flag packaging. The mission of IKEA is not only bringing you the simple beauty of Scandinavian-style home, but also create a better life for most people. IKEA furniture design concept is very simple "to set the price that every person can afford" said IKEA Marketing Department, said Cheng Yaoyi marketing manager. Therefore, the package designs of IKEA are almost simple and this can bring the operations to simplify and become more convenience.
Most of the IKEA furniture involves practicality and design sense, use the lowest cost and quality materials to produce. Moreover, the other important feature of the IKEA furniture is flag packaging. The flag packaging concept helps IKEA to reduce storage space and freight costs and the most important purpose is to reduce the risk of damage of the inventories on logistic. Base on the concept, all of the IKEA ’s product and extremely simple and the packaging will design to be embedded between two shapes. Therefore, this can fully utilize the space.
III. Competition of IKEA
In Hong Kong, the biggest competitor of IKEA is Pricerite. IKEA is origin from Swedish at 1943. And Pricerite is origin from Hong Kong at 1986. Nowadays, IKEA has 349 stores in 43 major countries and city in the world whereas Pricerite has 32 stores in Hong Kong and has expand the business to South China. Although they are origin from different country, they are operating in a same category and market. They have the similar idea that is provide a solution of the furniture problem and giving a quality purchase experience to the customers. Also, they are selling different kinds of furniture and home furnishings which including large size of furniture, from a small group of assembled furniture, household goods etc. Both of them offer self-assembly furniture to the customer. However, Pricerite have the ready assembled furniture. The biggest advantage of IKEA is their scale is larger than