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IKEA's International Marketing Strategy in China |
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INTRODUCTION |
| In August 2017, Angela Zhu (Angela), country retail manager of IKEA China, said the IKEA Group planned to open three new stores in China in the financial year 2018-19, enhancing its distribution networks and e-commerce presence in the mainland. IKEA’s store expansion plans followed announcements of its strong financial results in China. For the period September 1, 2016, to August 10, 2017, IKEA China’s sales revenue increased by 14% on a year-on-year basis, amounting to ¥ 13.2 billion (US$1.98 billion). Despite this, IKEA continued to grapple with a number of challenges while doing business in the country. For instance, in October 2017, it was forced to pull a television ad from the airwaves in China and issue an apology after it attracted accusations of insensitivity toward single women. The episode left industry observers wondering whether the company had been able to understand the Chinese culture at all...
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