To cope with the Swedish giant’s low-price and do-it-yourself marketing power, local furniture makers will arm themselves with “high quality and service” as their core competitiveness. (image: kobizmedia)
SEOUL, Korea, Feb 25 (Korea Bizwire) – As the world’s largest furniture maker IKEA is launching its first store in Korea this year, local furniture makers are busy preparing a battle against the “furniture dinosaur.”
IKEA is working diligently to open the largest furniture store in Korea at Gwangmyeong, southwest of Seoul, and prepared for a second store in Goyang, northwest of Seoul. Its third store is reported to be built in the southeastern suburb of Seoul.
To cope with the Swedish giant’s low-price and do-it-yourself marketing power, local furniture makers will arm themselves with “high quality and service” as their core competitiveness.
For Hanssem, Korea’s largest furniture maker, reduced its production cost to 7-8 percent last year for the price competitiveness by automation and standardization of its parts. Also, it will open its sixth flag shop to offer better services to customers like delivery, equipment and after-sale service.
Livart, Korea’s second largest furniture company, is investing to widen its distribution channels by opening its stores in downtown areas of the cities unlike IKEA which is planning to open mega stores outside cities.
Also, to implement aggressive marketing strategy aiming at younger generation who want mid- and low-priced products, it strengthened the online sales channel widening its items to kitchen and office furniture.
Meanwhile, middle and small-sized furniture makers are also opening Internet shops to adopt themselves into rapidly changing furniture market.
However, once IKEA opens for business in Korea, local makers are expected to be put in a defensive corner. A furniture market analyst who conducted a survey on IKEA’s advancement into China said, “IKEA products including furniture destroyed domestic furniture makers in China. Its destructive power will be more formidable in Korea.”
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