The Globalization of Markets: IKEA
The globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace.1 The Global retailer – IKEA has benefited from globalization of markets. IKEA converges global middle class who are looking for lower-price and attractively designed furniture and household items as its target market. When multinational consumers to be its target customers, the amount of consumers will be increase and its offerings should have more chance to be chosen. After globalization of markets, sales figure are very likely to be increase. By offering the products to different national countries, reputation of IKEA should have a nice improvement.
IKEA uses the same basic formula worldwide for its target market. IKEA has benefited from the creation of its own global market. It serves this target market by offering plenty items to those shoppers to gain more revenue. Although IKEA offers a lot of home-furnishing items, the production design reflects the simple clean Swedish lines that have become IKEA’s trademark. The company still remains its characteristic by offering different items. Standardization of the products such as the company’s best-selling - 1.5 million units of Klippan love seat contributed great sales to the company. This strategy can also decrease the cost of production, even generate more profit. Since IKEA’s products enter into China market, the firm has adopted different countries-specific strategies. The operation strategies are slight different from using in other counties that is localization of marketing in China. In order to appeal to China market, IKEA adapted something to operate in this big market. For example, the balconies were built in IKEA’s China stores which reflect the layout of many Chinese apartments. The layout resonates with Chinese style. It can reduce cultural difference of the two countries. Moreover, stores are located near public transportation that IKEA offers delivery services
IKEA uses the same basic formula worldwide for its target market. IKEA has benefited from the creation of its own global market. It serves this target market by offering plenty items to those shoppers to gain more revenue. Although IKEA offers a lot of home-furnishing items, the production design reflects the simple clean Swedish lines that have become IKEA’s trademark. The company still remains its characteristic by offering different items. Standardization of the products such as the company’s best-selling - 1.5 million units of Klippan love seat contributed great sales to the company. This strategy can also decrease the cost of production, even generate more profit. Since IKEA’s products enter into China market, the firm has adopted different countries-specific strategies. The operation strategies are slight different from using in other counties that is localization of marketing in China. In order to appeal to China market, IKEA adapted something to operate in this big market. For example, the balconies were built in IKEA’s China stores which reflect the layout of many Chinese apartments. The layout resonates with Chinese style. It can reduce cultural difference of the two countries. Moreover, stores are located near public transportation that IKEA offers delivery services