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Read this article from the Financial Times.
One furniture store fits all
By Nicholas George
While multinationals are encouraged to follow Coca-Cola’s lead and ‘think global, act local’, Anders Dahlvig, chief executive of Ikea, the world’s largest home furnisher, sees no need to tailor Ikea stores to local markets. ‘Whether we are in China, Russia, Manhattan or London, people buy the same things. We have the same range everywhere - we don’t adapt to local markets,’ says Mr Dahlvig. He believes the group will double its sales in the next five years, adding 60 to 70 new stores worldwide and expanding many of its existing 139.
‘Our strategy is to concentrate on existing markets, grow them and penetrate them further,’ he says. It is a strategy that recognises that even in its largest markets, the UK and Germany, market share is still probably less than 5 percent. (Europe is by
far the biggest market, with 80 percent of sales, followed by North America with 17 percent and Asia with 3 percent.)
But the strategy also reflects Ikea’s need to consolidate its position in the newer Russian and Chinese markets. ‘Both Russia and China have enormous potential for us. A lot of people with limited means - that’s perfect for our concept,’ he says.
From the Financial Times