Ikea at Last Cracks China Market, But Success Has Meant Adapting to Local Ways _ South China Morning...
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7/27/2019 Ikea at Last Cracks China Market, But Success Has Meant Adapting to Local Ways _ South China Morning Post
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9/12/13 Ikea at last cracks China market, but success has meant adapting to local ways | South China Morning Post
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On a recent Saturday afternoon, Ikea's flagship mainland store - one of the
world's largest - is abuzz with people. Walkways guiding visitors f rom one
showroom to the next feel more congested than the road outside, and almost
all 660 seats in the canteen are occupied. Yet the lines to the cashiers are
refreshingly short - most are not here to shop.
The store is gripped by a kind of anarchy that
would rarely be seen, or tolerated, in its country
of origin. There are picnickers everywhere -
their tea flasks and plastic bags of snacks lining
the showroom tables. Young lovers pose for
"selfies" in mock-up apartments they do not live
in. Toddlers in split pants play on model
furniture with their naked parts coming incontact with all surfaces.
On a king-size bed in the middle of the largest showroom, a little boy wakes
from a nap next to his (also sleeping) grandmother. When the old woman
casually helps the boy urinate into an empty water bottle, dripping liquid
liberally on the grey mattress under his feet, most passers-by seem not to
mind or even notice. The exception is a young woman who elbows her
disinterested boyfriend: "Look, he's peeing into a bottle!"
Most endemic, however, is the sleeping. After a few, rare clear days, the
city's notorious heavy smog has returned, and is made worse by a sticky,
dusty heat wave striking northern China. Weeks earlier, a photo of people
napping in a Shanghai shopping centre to escape the searing heat went
viral, but in the capital, it is Ikea's cool, conditioned air that is salvation for
tens of thousands of its inhabitants.
The bedroom and living room sections on the store's third floor are the mostpopular. Virtually every surface is occupied by visitors appearing very much
at home. Older people read newspapers or drink tea; younger visitors cuddle
or play with their phones. Most, however, are sound asleep.
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NEWS
CHINA SOCIETY
Sunday, 01 September, 2013, 6:10amKim Wall in Beijing
[email protected] (mailto:[email protected])
Ikea at last cracks China market, but success hasmeant adapting to local waysFurniture giant has bent over backwards to accommodate Chinese keener on sleeping than
shopping, and is now seeing rapid sales growth
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Feeling right at home: Families, friends and couples slumber on furniture in Ikea's
showrooms on a typical Saturday afternoon. Photo: Kim Wall
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Feeling right at home: An old woman
helps her grandson urinate into a bottle
as he stands on a mattress on display
in the store. Photo: Kim Wall
(https://ww w .scmp.com/sites/default/files/2013/08/31/7473f0cdc89423533845824616b76c4a.jpg)
On an average day, the 42,000 square metre store lets 28,000 visitors
through its doors - though this day might be particularly busy. And every day,
Jason Zhang, who works in the bed section, pa tiently wakes up about a
hundred of them.
"Excuse me, you can't sleep here," he says politely but firmly, waiting for the
verbal abuse that often follows as he redirects them to a designated section
near the canteen. "Other customers need to try the product. The resting
area is just over there."
His efforts are mostly in vain. In the bedroom section, the few customers
actually interested in buying mattresses struggle to find space to try them.
Almost all the beds have people sprawled on them, or tucked in under
colourful duvets, their shoes kicked off on the floor. In one showroom, two
women and a baby are fast asleep in a bed, with a man, presumably the
father, knocked out in an armchair next to it.
"I think it's just that shopping behaviour in China is very different," says
Zhang, shrugging at the mayhem around him.
The Chinese approach to Ikea has long intrigued expatriates and domestic
internet users a like, with bizarre incidents regularly topping the news onsocial media. Judging from online testimonies, it seems fairly common to
leave kids alone to play and nap in the children's showrooms while the
parents run other errands. In Shanghai, it was rumoured that a speed-dating
club of 50 to 60 members gathered weekly in a store over free coffee
provided courtesy of the group leader's Ikea club card.
While the free-r iding may not seem like an immediate recipe for profit, Ikea is
exceptionally patient about it. "We welcome anyone to visit our stores -
today's visitor cou ld very well be tomorrow's customer," says Linda Xu, public
relations manager for Ikea China, adding that China is one of the company's
most important markets.
Yet it is obvious that Chinese consumers making themselves right at home in
the store put a strain on staff. In keeping with Ikea's focus on self-service, the
store has relatively few employees on the shop floor, explains Yvonne Yin, a
PR spokeswoman at a Shanghai branch.
"The sleeping behaviour does create extra work," Yin admits. Sheets have to
changed every other day or so. "We have mixed feelings about it. On one
hand, it's great that they love Ikea, but you think: why can't they do things like
that elsewhere?"
Ikea has tried hard, in its own way, to adapt to the Chinese market. Initially, it
was not a smooth ride for the privately held, Swedish-founded, Dutch-
domiciled company. The first two mainland stores opened in 1998, and it took
another eight years before other branches were added.
But now it seems Ikea's patience with what may be its most challenging
market is paying off after 15 years in the country. The company recently
became the largest foreign commercial landowner in China, with 12 stores
covering a total of 640,000 square meters. In fiscal 2012, turnover exceeded
6 billion yuan (HK$7.5 billion). It saw more than 15 million visitors - 7.3 million
of whom visited the Beijing flagship store.
And it is expanding aggressively. On Thursday, a third store opened in
Shanghai, while Beijing will get its second later this year. Land has also been
bought for another three stores in Chongqing, Wuhan and Hangzhou.
According to Tom Doctoroff, an expert on Chinese consumer psychology and
author ofWhat Chinese Want, the recent spike in Ikea's popularity is mostly
due to a dramatic change in pricing strategy. The average cost of Ikea
founder lets his
three sons take over
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re in Hong Kong
25 Aug 2013
http://www.scmp.com/business/banking-finance/article/1299396/why-children-many-important-people-are-hong-konghttp://www.scmp.com/business/companies/article/1255984/new-generation-takes-reins-ikea-founder-lets-his-three-sons-takehttp://www.scmp.com/comment/insight-opinion/article/1299965/time-cathay-come-clean-junkethttp://www.scmp.com/business/banking-finance/article/1299396/why-children-many-important-people-are-hong-konghttp://www.scmp.com/business/companies/article/1300831/restaurateur-buys-paper-side-dishhttp://www.scmp.com/comment/blogs/article/1298068/triumph-skies-failure-hong-konghttp://www.scmp.com/business/banking-finance/article/1301354/hope-highlights-divide-between-hong-kong-and-shanghaihttp://www.scmp.com/comment/insight-opinion/article/1299965/time-cathay-come-clean-junkethttp://www.scmp.com/business/companies/article/1119407/india-likely-open-door-ikeahttp://www.scmp.com/business/companies/article/1119407/india-likely-open-door-ikeahttp://www.scmp.com/business/companies/article/1255984/new-generation-takes-reins-ikea-founder-lets-his-three-sons-takehttps://www.scmp.com/sites/default/files/2013/08/31/7473f0cdc89423533845824616b76c4a.jpg -
7/27/2019 Ikea at Last Cracks China Market, But Success Has Meant Adapting to Local Ways _ South China Morning Post
3/5
9/12/13 Ikea at last cracks China market, but success has meant adapting to local ways | South China Morning Post
www.scmp.com/news/china/article/1300942/ikea-last-cracks-china-market-success-has-meant-adapting -local-ways 3/5
products has fallen 50 per cent in the past decade.
The main problem was that, until recently, people were not willing to pay
Ikea's prices, Doctoroff says. For Chinese consumers, products for domestic
consumption are secondary to the more visible status offered by Western
brands such as cars, watches or even Haagen-Dazs ice cream and
Starbucks coffee. "They finally got the price-value equation right," he says.
For many, going to Ikea may not be too dissimilar to visiting a theme park.
Generally, Doctoroff explains, Chinese people tend to take a more
recreational approach to consumption. "Shopping in China is far more about
the experience itself than it is in the West," he says.
Sometimes, it's simply something you do to escape the heat and enjoy agood nap. Unperturbed by the commotion around her, a young woman
slumbers peacefully on a bed in a showroom until her friend, awake at the
foot end and checking her phone, gently pokes her. She sits up and casts a
sleepy eye around her.
"I was just tired," Xujin, 18, replies when asked about her choice of napping
spot, seemingly confused by the question. "I don't mind all the other people.
It was very comfortable."
This article appeared in the South China Morning Post print edition as Not
taking success lying down
ALL COMMENTS (/NEWS/CHINA/ARTICLE/1300942/IKEA-LAST-CRACKS-CHINA-MARKET-SUCCESS-HAS-MEANT-ADAPTING-LOCAL
MOST RECOMMENDED (/NEWS/CHINA/ARTICLE/1300942/IKEA-LAST-CRACKS-CHINA-MARKET-SUCCESS-HAS-MEANT-ADAPTIN23
johnfra
morganmaj
Up to three years in prison for Chinese internet users who spread rumours
(http://scmp.co m/news/china/artic le/13 07 266/jail-threat-mainland-internet-users-who-spread-rumours)
Sep 11, 2013
Why are Chinese tourists so rude? A few insights(http://scmp.com/news/china/article/1251239/why-are-chinese-tourists-so-rude)
Sep 11, 2013
Chinese netizens feel 'cheated' that the iPhone 5c is still expensive(http://scmp.com/news/china-insider/article/1308223/chinese-netizens-feel-
cheated-iphone-5c-still-expensive)
Sep 11, 2013
Hongkongers not nearly as happy as Asian rivals(http://scmp.co m/news/hong-kong/article/1 307 853/hongkongers-not-nearly-
happy-asian-rivals)
Sep 11, 2013
3,000 villas, but no ones home: Inside the Jing Jin ghost city(http://scmp.co m/news/china/artic le/13 07 246/30 00-v illas-no-ones-home-inside-
jing- jin-g host-c ity )
Sep 11, 2013
This article is now closed to comments
johnfra
Sep 5th 20138:00pm
Reading some of the comments so far, may I suggest that there are other explanations why the Chinese mass es
in China act the way they do, particular in environment that is not their usual daily milieu. Remember not too longago most of these folks are peasants from the countryside, with NOTHING having been robbed by the West over
the centuries and are s till being robbed dai ly by their own corrupt officials AT EVERY LEVEL, starting from time
immemorial.
They are now, thanks to DENG Xiaoping and the West who transplanted the whole of their technologies, jobs,
expertise to China for the sake of "cheap" labour and thereby ruining their own countries, the Chinese have
moved to the cities and begin to enjoy a better living, one that they deserve. Again, thanks to the consumerism
and brand-name identification, they are lured and sucked into Western life-style and comfort. Some of them (girls
especially) even think going out with a foreigner is an attraction in itself, and most Chinese think everything
Western is wonderful just as the guilt-ridden Westerners now think everything Chinese is fabulous.
Give them some time and they will be jus t like everyone else. They might even stop SPITTING, URINATING and
DEFECATING in public, SWEARING in front of women and children and maybe even start QUEUEING-UP to wait
for their turn.
morganmaj
Sep 5th 201312:06am
A couple of months ago in the HK IKEA in Shatin I watched a small boy (4 years old?), alone, in a child's bedroom
mockup, he took off his shoes placed them neatly under the child's bed and then pulled back the duvet, climbed
in, pulled up the duvet and snuggled up underneath and was clearly in 7th Heaven. If I had a video camera it
would have formed the basis for a wonderful advert for IKEA.
Was he abusing where he was and what IKEA was trying to promote? NO he was obviously an IKEA convert, at
least for the short term if not the long term.
After reading this article, people also read
http://scmp.com/news/china/article/1307246/3000-villas-no-ones-home-inside-jing-jin-ghost-cityhttp://scmp.com/news/hong-kong/article/1307853/hongkongers-not-nearly-happy-asian-rivalshttp://scmp.com/news/china-insider/article/1308223/chinese-netizens-feel-cheated-iphone-5c-still-expensivehttp://scmp.com/news/china/article/1251239/why-are-chinese-tourists-so-rudehttp://scmp.com/news/china/article/1307266/jail-threat-mainland-internet-users-who-spread-rumourshttp://www.scmp.com/news/china/article/1300942/ikea-last-cracks-china-market-success-has-meant-adapting-local-ways?comment-sort=recommended#commentshttp://-/?- -
7/27/2019 Ikea at Last Cracks China Market, But Success Has Meant Adapting to Local Ways _ South China Morning Post
4/5
9/12/13 Ikea at last cracks China market, but success has meant adapting to local ways | South China Morning Post
www.scmp.com/news/china/article/1300942/ikea-last-cracks-china-market-success-has-meant-adapting -local-ways 4/5
mcdinc
Adrian P
michael.desocio.37
yellow_lynx_cat
brent.mosey
leekaon
vinniepee
sienna.lai
mcdinc
Sep 4th 20133:30pm
jus t curious why this represen ts Ikea "at last cracks the China m arket" just cause it lets people sleep on it's
showroom furniture.. For those living in Beijing since the store first opened (like me), we can attest to the affect on
traffic that Ikea's popularity has caused. i would question the use of "at last"... it's been widely popular ever since it
first opened cause it i s so convenient and always has been moderately priced..
Adrian P
Sep 4th 20134:00am
"According to Tom Doctoroff, an expert on Chinese cons umer ps ychology and author of What Chinese Want, therecent spike in Ikea's popularity is mostly due to a dramatic change in pricing strategy. The average cost of Ikea
products has fallen 50 per cent in the past decade." Congrats to SCMP for turning another legitimate news item
into a trivializing, trashy and baiting tabloid piece!
michael.desocio.37
Sep 4th 201312:38am
I'm shocked by the racist comments on this board. This article captures one of the many, many reasons why I love
China so much. Sure, Westerners know how to "properly behave" in an Ikea or a shopping mall - just like perfectly
herded and obedient sheep, or domesticated animals. (By the way, who says *your* way is the *right* way? Other
questions to as k yourself: Why are you so angry and threatened at other ways? And what gives you the right to
judge?) Read Michel de Certeau's "The Practice of Everyday Life," about the small res istances and unprescribed
uses people make of objects and spaces. [paragraph] Go to a housing estate in China, and then one in America,
and you'll see the difference. In China it's a safe, bustling, active community with a creative informal economy and
where women of all ages (with men as well) have set up meeting places to dance and exercise; in America or
England, it's a danger zone of violence and gang-con trolled turf, where the elderl y dare not stay out in the open for
too long. [new paragraph] And did you stop to think that being in Ikea is for many Chinese like being in a foreign
space? The air-conditioning, the luxurious soft beds and cushioned furniture (many Chinese sit on wooden
furniture and sleep in hard beds) - it's not just a place to browse furniture, but to enjoy the experience of being in a
kind of exotic locale. If anything, I want to say: Stop judging (an understandable albeit knee-jerk response), be
open and try to think it through.
yellow_lynx_cat
Sep 11th 20133:58pm
In America or England are public and poor people lived there. In China those housing estate are
owned by the much well-off middle class - that's why you noted the difference. As a Chinese I
just hope you throw away those roman ticised im press ion of China. Mainland Ch ina is a barbaric
place, it is not racist (because I am an ethnic Chinese too), but a sad reality because the 5000
year civilization collapsed half a century ago.
brent.moseySep 5th 201312:48pm
China is certainly different than your typical North American or European countries, and it can be
an exciting pleasure at first. I remember, during the early years of traveling to China, feeling
similar to you. The problem is, for me at least, it wore off. The idea that "Westerners" know how
to "properly behave" just like herded sheep is a little off base, in my opinion. It's called having
respect for others. I don't push people off the subway because I think about the outcome and
realize I may hurt others. I don't push m y way to the front of a line becaus e I realize that others
have been waiting there longer than I have, and I wouldn't want that to happen to me . I don't
smoke in an elevator with children, because I realize smoking is my choice, not theirs, and it
should only be affecting me. I stop for people crossing at cross walks because I consi der the fact
that I may injure someone. Being a herded sheep has it perks. When I brought my family to
China for one of my visits, it was extremely stressful trying to watch my children as bicycles,
motorcycles and even cars were constantly presenting dangerous situations. We had two very
close calls. Safe wasn't exactly the word that I, personally, would use.
I'd hardly call it "racist" to comment on common trends I've seen in the country of China. That's
about as silly as saying it's racist to say that most Chinese use chopsticks. Anyways, fortunately,I don't live there, so if that's what you love, its all yours
leekaon
Sep 6th 20135:47pm
Agree no more
vinniepee
Sep 4th 20135:37pm
Next time, open a shop, and let me come and 'try' all the products for free, then walk out.
You speak from a hole that certainly isn't your mouth.
sienna.lai
Sep 4th 2013
1:25pm
how is this racist? .. perhaps 'culturalist', MAYBE .. And that's only because most of us get
trapped in this mire of falacious thinking easily. The lack of respect you speak of is exactly the
behavior being brought about (again) with this article. Lookup
'****www.criticalthinkeracadem y.com/' for your own sake, PLEASE!
I think you have it backwards .. it is eas tern culture to behave like 'perfectly herded and obedient
sheep, or domesticated animals." .. that is until they are released into the candy store of new
-
7/27/2019 Ikea at Last Cracks China Market, But Success Has Meant Adapting to Local Ways _ South China Morning Post
5/5
9/12/13 Ikea at last cracks China market, but success has meant adapting to local ways | South China Morning Post
www.scmp.com/news/china/article/1300942/ikea-last-cracks-china-market-success-has-meant-adapting -local-ways 5/5
found freedom. .. this i s wha t we are seeing .. and often .. literally every time I have been a
witness.
Past, that it is 'culture' BY ITSELF that engenders d rone like thinking .. not just 'eas tern' or
'western'.
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