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Interview|Taipu opens the world's finest store, specializing in home storage IKEA: Small space must be comfortable

2021-10-27T04:19:49.881Z


IKEA has always given people the impression of a huge shop area and a labyrinthine route. But recently, IKEA has been "uncharacteristically" and opened the world's most subdivided store in Tai Po. The store area has shrunk from a flagship store of more than 100,000 square feet to only 5,0.


IKEA has always given people the impression of a huge shop area and a labyrinthine route.

But recently, IKEA has "uncharacteristically" and opened the world's most subdivided store in Tai Po. The store area has shrunk from a flagship store of more than 100,000 square feet to only 5,000 square feet.


Less is more! In an interview with "Hong Kong 01", Li Chaocheng, the marketing director of the company's Hong Kong and Macau region, shared IKEA's store opening strategy in Hong Kong and how to "fight" online and offline to attack the market.


IKEA's first "Planning and Ordering Center" in Hong Kong is located in Tai Po, and it only opened in mid-August this year.

Walking into the store, it can be said to be clear at a glance. The store area is only 5,000 square feet. The selling point is the new pre-sale storage inspired digital experience and storage planning area.

Stepping into the store, you can see all kinds of storage tools, with storage boxes of different sizes and textures.

Guests can also browse various styles of home furnishings on the digital interactive screen, and "preview" the products in their homes.

Next to the interactive screen is the place where Swedish food is sold. Although the shop is small, it has a full range of food under its own brand. There are also counters on site for staff to assist in planning and ordering furniture.

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The flow of people in regional shopping malls is also booming. Hundreds of people pass by every minute

In a change from the previous style of giant shops, Li Chaocheng said that opening small stores is to better cater to the needs of residents in various regions, so that customers who shop quickly can also have more convenient choices. "If we want to "land" in the local area and be more convenient for the public, I believe this A store of this type and size is a good choice."

He pointed out that the Tai Po store should be the group’s smallest branch in the world so far. "Foreign IKEAs are mostly opened next to the highway, but the company has also begun to conceive different forms of "customer meeting point", so small stores are also our picks. One of the focuses of development.”

The place is unobstructed by the residents of Tai Po to go to the "pilgrimage."

Li Chaocheng revealed that the flow of people on the first day of the store's opening can be compared with the flow of people on the weekend in Causeway Bay.

In the first month of opening the store, there are already 6 digits in turnover. "These regional shopping malls have a lot of people. Even at two or three o'clock in the afternoon on weekdays, hundreds of people pass by every minute."

The new store in Tai Po is small, but the flow of people is still busy.

(Photo by Ou Jiale)

According to IKEA statistics, in the first half of August, food sales in the Dapu store accounted for 55% and furniture accounted for 45%; in the following two weeks, furniture accounted for 60% and food accounted for 40%.

The types of goods placed in the fine shops are limited, but it also helps IKEA to better understand the needs of customers and adjust the stocks sold in the store.

Li Chaocheng said that although the living space of Hong Kong people is small, everyone should have the same requirements for a comfortable home. "The difference is only the size of the space. Therefore, home storage is the theme of the Tai Po store. We mainly sell various storage home products in the new store. Various storage, wardrobe combinations with multiple compartments, etc."

It is not easy to find a self-proclaimed role "passive" for more than 100,000 square feet of berths

Different from IKEA's usual giant stores, there are many furniture stores on the market that are mostly operated in a fine shop. You can see the full range of goods at a glance. Does IKEA open new stores just to compete with these brand rivals?

Li Chaocheng disagrees with this statement, "Citizens living in Sheung Shui will not take half an hour to Sha Tin to go to IKEA. We just want to open different types of stores and cooperate with online stores to take care of the shopping of urbanites today. need."

The area of ​​IKEA's stores is easily calculated at more than 100,000 square feet. Finding a store is not as easy as imagined.

Li Chaocheng said that the opening opportunities for large and small stores are equal. "IKEA standard product quantity has at least 8,000 products, and customers will not order all of them online, so we must have physical stores to cooperate with the operation." He said that the company will first consider the market. Is there a suitable area for the store to enter? Next is the size of the store that the owner can provide. "There is no reason to open a big shop in Sha Tin, but Tai Po will open again."

Li Chaocheng pointed out that the company also hopes to open large stores in the above areas, but the role is relatively "passive."

(Photo by Ou Jiale)

In addition to the newly opened "Planning and Ordering Center" in Tai Po in August, IKEA's other branches are located in Causeway Bay, Kowloon Bay, Sha Tin and Tsuen Wan. The branch in the basement of Park Lane Hotel in Causeway Bay is the oldest branch in Hong Kong.

According to the statistics of the Census and Statistics Department, the population of Yuen Long, Tuen Mun and Sai Kung are about 640,000, 500,000 and 470,000 respectively, which is more than the 300,000 in Tai Po District. Li Chaocheng said that the company also hopes to be in the above areas Opening a large shop, "In fact, we never stop looking for suitable shops, but because the area of ​​more than 100,000 square feet is too large, we are only in a passive role, but we are still looking for it."

Online stores such as the fifth giant shop have become integrated online and offline

IKEA began to develop online shopping a few years ago. Li Chaocheng pointed out that the current online store has almost the same business volume as the fifth large-scale store in Hong Kong.

"Offline provides on-site viewing experience, online is convenient and fast, and there is no shopping time limit." He said that IKEA stores have begun to add large screens, so that customers can easily view products without having to "walk through the whole venue."

In addition, the IKEA mobile app also has a variety of services to cooperate with the operation of physical stores. "Customers can scan the barcode of the goods and check the goods information such as size and storage quantity in the mobile phone for customers to "click and collect"."

IKEA began to develop online shopping a few years ago. Li Chaocheng pointed out that the current online store has almost the same business volume as the fifth large-scale store in Hong Kong.

(Photo by Ou Jiale)

Li Chaocheng said that the two operate in a complementary manner and will not compete with each other.

He pointed out that if customers buy large-scale furniture, most of them will come to the store to see the actual product first, and then directly select the ordering service from the online order.

"For example, most people buy wardrobes in online stores, but home accessories, furnishings, etc. sell less."

Citizens' consumption is still cautious

The epidemic last year was more severe, but IKEA's overall turnover increased by a single digit year-on-year. Li Chaocheng said that cleaning products and cooking utensils increased by nearly 40%, and home accessories were also one of the categories of goods that increased more.

"I believe a big reason is because everyone worked from home last year."

Li Chaocheng pointed out that the Hong Kong economy has been considered "very hard and clean" since the epidemic. However, public consumption is more cautious than before. Coupled with the sharp increase in transportation costs, IKEA has insisted on not increasing prices. Therefore, this year's profit is expected to have a low single-digit decline year-on-year.

"Maybe I originally bought two guts, but now I only buy one; or the same type of items will tend to choose the cheaper one."

In August, retail sales volume rose by 11.9% year-on-year. The government earlier stated that the first issue of consumer vouchers could boost the local economy.

Li Chaocheng pointed out that the most obvious situation is that the first round of consumer coupons was the first week of August, and sales increased by about 10%. Large-scale furniture with higher unit prices also had better sales, but then they returned to normal.

"It is expected that the same situation will happen in the first week of October, but it is also normal, because I believe that every citizen has a plan to use the voucher before receiving it."

The IKEA new store's goods are clearly displayed at a glance.

(Photo by Ou Jiale)

Interview|Chartered Ships to Cope with Global Supply Chain Imbalances IKEA: Rising Transportation Costs, but Will Not Increase Prices

Source: hk1

All news articles on 2021-10-27

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