Making home life more affordable for the masses is a long-term commitment to IKEA. Recently, IKEA held a media exchange and sharing session full of inspiration for a better life at the pop-up exhibition "Low Price Creates Pricelessness - IKEA 'Boutique'" in Taikoo Li Qiantan. At the meeting, IKEA China shared the latest insights on home life, explored the "meaningful cost performance" that exists in consumption and a better life, and more possibilities to create value for "home", and released the "China Home Life Trend Report 2023" together with the "Future Vision" of the Yicai lifestyle research team.
Scene of the pop-up exhibition "Low prices create no price - IKEA 'boutique' stores".
"Providing consumers with a wide range of beautiful and practical household products that people can afford is IKEA's business philosophy since its inception. "Today's consumers are more rational in measuring their consumption behavior and value, focusing on self-identity and emotional connection. As your own space, the value extension of your home has become more important than ever. Based on IKEA's long-term philosophy and consumer insights, we propose and adhere to the "meaningful value for money", aiming to make consumers feel that the value they get is greater than the cost when they buy and consume. It's a concept that permeates every aspect of IKEA's day-to-day operations, and we want to make it easy to feel that it's not hard to have a good life at an affordable level. ”
Cowan Orgen, Senior Manager of Commercial Events at IKEA China, shared his views
Based on long-term insight and practice, it makes "meaningful cost performance" possible
Driven by curiosity about people's lives, needs and dreams at home, IKEA visits different consumers and families each year to discover the secrets of creating a better life and put them into practice. Based on real feedback and sharing from consumers, IKEA believes that "meaningful value for money" is about people's emotional experience and the emotional value that comes with home and life. According to the "China Home Life Trend Report 2023", as China enters a stable stage of high-quality development, the public has further demonstrated the demand for "stability" in home lifestyle choices, and presented consumption plans that match "self-awakening". In the face of an unknown environment, people are more inclined to spend cautiously, but they are also willing to invest in a quality of life and pay for a better life experience.
Wu Ruomeng, Head of Consumer & Market Analysis at IKEA China, and Zhao Hui, Editor-in-Chief of Future Vision, shared their views
In order for consumers to get the best value for money, the "meaning" of IKEA's "meaningful value for money" is also about the practical value that the product provides at an affordable price. Embracing the concept of "democratic design", IKEA is committed to designing and developing products that people love, trust and afford, while maintaining low prices and sustainability, while combining good function, good looks and high quality. Through its efforts across the value chain, IKEA achieves more effective cost control for the benefit of consumers. For example, IKEA products are based on the principle of "price first, design later", and the product is designed with affordable prices in mind. At the same time, in retail operations, we have invested in automation technology to improve the efficiency of every square meter of vertical space to reduce operating costs. In the transportation process, the use of flat packaging to improve transportation efficiency. At the same time, large-scale sales also bring room for IKEA to benefit consumers and provide lower prices.
From products to experiences, make "meaningful cost performance" closer to the public
At the beginning of fiscal year 2024, under the continuous guidance of the "Growth+" strategy, IKEA China announced an investment of 6.3 billion yuan in the next three years, which not only includes continuous price investment, but also focuses on omni-channel integration and optimization, so as to improve IKEA's accessibility and make meaningful cost-effectiveness more accessible to the public.
Scene of the pop-up exhibition "Low prices create no price - IKEA 'boutique' stores".
In order to make products and solutions affordable and meet everyday needs, IKEA has implemented a series of investments and activities. In February this year, IKEA China announced an additional price investment of more than 100 million yuan to launch more lower-priced products, and will launch more than 500 products in the entire fiscal year 2024, covering bedrooms, living rooms, kitchens and other scenarios. In addition, some of the IKEA foods that are popular with consumers are also included in the scope of this price investment, and IKEA China has recently launched the "Hey! Half Price Friday" campaign in stores around the world, aiming to provide customers with a more affordable dining experience. On the day of the event, consumers can enjoy half price for a variety of main meals at IKEA restaurants. Based on a series of explorations and attempts, IKEA will always uphold long-termism, and under the guidance of the new three-year strategy of "Growth +", it will integrate meaningful cost performance into the lives of more people through omni-channel touchpoints, and better help Chinese consumers give more value and possibilities to their homes in an affordable way, and work with them to make "home is born because of you".