IKEA Design Aesthetics in China

            Opening up and reform policies in China since the year 1978 have continuously generated changes that are profound to the economic landscape of the nation.  This has facilitated the development of the furniture market in china very fast. China has since been committed to the global trading system through market ranges opening (Hofer, & Ebel, 2007).  This, therefore, helped most of the international organization in developing an interest to get into the market of china.   Most of the western and global organization tended to develop the assumption that the Asian market and the consumers are characterized by similar preferences and tastes.   However, the developing globalization has thus revealed the reality of the situation (Hofer, & Ebel, 2007).  Despite the world becoming a world village the impacts of culture, globalization, and language should be given considerations by corporations when designing their personalized marketing strategies in the Chinese market.

            Currently, the consumer habits are rapidly changing. The successful of the global market therefore depends on the ability of corporation’s to understand this behavioral changes as well as distinct cultures (Hofer, & Ebel, 2007).  China offers a huge market for products based on its large population as well as technological changes embrace.  In China the market regulations of entry are not as strict as compared to those of other developed and developing nations.  This factor therefore influenced IKEA into entering the market given that the market offered fewer threats (Hofer, & Ebel, 2007).

Several cultural factors influenced IKEA in seeking of aesthetic designs in Chinese market. This is mainly because china offers a wide market for each and every business.  China holds its personalized unique cultural differences as compared to the western nations which shares cultural aspects in a way or another (Jerinabi, & Santhi, 2012).  The shock of the culture and the distinct features of its market were the key features which influenced IKEA Corporation.  IKEA aesthetic designs sought was motivated by the availability of wider varieties of functional domestic furnishing equipment, well-developed designs, product quality, functional designs as well as simple and well-developed furniture.  Consumer behavior in china, therefore, motivated IKEA Corporation to invest in china as well developed furniture’s are well appreciated in the market (Jerinabi, & Santhi, 2012).  In addition, the Chinese market is characterized by middle-class individuals who make up the largest population of the nation.  Low priced products, therefore, helped IKEA in valuing the investment.

Market risks should be analyzed when getting into any market. IKEA entry into China’s market was associated with low risks which influenced its entry. The global factors that the corporation considered before the entry include the capability of the company, market attractiveness, economic aspects, social-political status, trade barriers as well as legal issues (Jerinabi, & Santhi, 2012).  The Chinese market holds a wide range of resources which makes foreign business operations in the market smooth.  The corporation sought out for homogeneity because the fewer differences there is amid the headquarter nation and the foreign nation the simpler it is in conducting business.  The corporation achieved this through considering proximity issue, cultural aspects as well as trade barriers (Jerinabi, & Santhi, 2012).

            China additionally offers low-cost investment. This is because the state’s government offers cheap land that is characterized by reduced fees.  This, therefore, implies that locating an industry in china is lower as compared to Europe as well as America (Motohashi, 2015). IKEA made the observation that the Chinese furniture market is not easy to understand and nor is it homogenous. This is because the consumer expectation in china and the behaviors of purchasing have made regional markings and variations since market entry in the Chinese market is complex IKEA utilized a joint venture.  Additional the additional factor is that China embraces wooden furniture’s as they are the major occupants of furniture’s (Motohashi, 2015).

            In order for any business to succeed international operational most must be reduced in order to increase profitability.  Due to the wide differences in culture, business practices as well as topographies throughout china, the furniture industry cannot be predicted.  China is associated with low cost of labor, a wide consumer market as well as import tariff charges that are declining (Motohashi, 2015).  This therefore attracted IKEA Corporation into the furniture industry since the production cost was low as compared to other nations that it has ventured before such as U.S.A.  Furniture demand in the country is also huge as it is influenced by the following main factors, dense population, household’s number, fresh residents’ spaces amount as well as disposable income amount.  Domestic growth mainly influenced IKEA to seek for aesthetic designs in china.  This is mainly because domestic demand in the nation is the major drive for the development of Chinese furniture market growth. The main cultural and global factors that attracted IKEA Corporation to investing its furniture designs in china is because it offers the largest market for products in the world.   This is based on developed living standards of individuals, dense population, favorable government policies as well as low labor cost. This would thus offer a much wider market share as well as developed profits (Bidgoli, 2010).

            One global factor that attracted IKEA in seeking for aesthetic furniture designs in china is technological advancement.  China is well advanced in terms of innovativeness as well as technologies which help in increasing marketing efficiency (Bidgoli, 2010).  This factor therefore favored the marketing strategies utilized by the corporation by increasing public awareness.  Marketing is the most essential part of business operation because it enhances customer base development.  Clear pricing strategies in the market additionally helped IKEA on focusing on the value of products, product design as well as effective communication modes.  Chinese consumers tend to purchase goods that are of low of medium charges. The design fashion in china is a functional and a simple tendency thus making its furniture market to be of great potential (Bidgoli, 2010).

In summing up IKEA has become an efficient global corporation with its wide products variety, unique market approaches as well as international operations experience. This has thus been responsible for its growing capability in acquiring larger market shares globally as compared to its competitors.  However, there are additional issues which are hindering the corporation’s capability to develop in china as well as other nations. These issues are linked to nation’s economy, lifestyle as well as cultures. In china the corporation gets low revenue from its sales based on the fact that the brands are not based on the developing styles and designs. The products are of low quality in comparison of the furniture’s produced by the competitors in the Chinese furniture market.  This therefore illustrates the need for IKEA Corporation to implement a fresh strategy that is purposed on product, brand, management as well as services balancing. This will help in expanding the fresh market thus acquire more recompense in the competitive market.

 

 

 

 

References

            Bidgoli, H. (2010). The handbook of technology management. Hoboken, N.J: John Wiley & Sons.

            Hofer, M. B., & Ebel, B. (2007). Business Success in China. Berlin, Heidelberg: Springer-Verlag Berlin Heidelberg.

Jerinabi, U., & Santhi, P. (2012). Creativity, innovation, and entrepreneurship.

            Motohashi, K. (2015). Global business strategy: Multinational corporations venturing into emerging markets