Decrypt IKEA brand and the cost of two affordable

IEKA (IKEA) is the twentieth century a few mind-boggling commercial wonders that the early 1943 from the point of "poor" mail order business of stationery, 60 years on the development of the global total of 180 chains, distribution in 42 countries, employs 7 000 employees of the "Monster". 2001 IKEA gets 110 billion euros revenue and more than 11 billion euros in net profits, become the world's largest home furnishings retailer, also won the Interbrand published TOP100 world's most valuable brand in the # 44-bit glory.

Due to the wind and rain and not down, walk through hardship but stronger, IKEA will have its unique success. According to this author that IKEA is success, from Wal-Mart as the representative of the cost leadership route, and to the West falls as the representative brand differences between routes, go out and created a third way: both control brand and control costs, the brand and the cost of two affordable, this third line for IKEA has created a tremendous competitive system (as described in the following figure).

First, the integration of brand strategy formation on the brand of absolute control

For most retailers, the manufacturer brand remains mainstream, brokers can only be a good brand of supplementary part, never "distracting", whether Wal-Mart or Carrefour. For example, Carrefour is widely known that arises spontaneously shopping desires, but "Carrefour" card of sanitary napkin is probably nobody knows not to have any attraction. This essentially means that retailers only control the brand channels, but you can't control of brand rights.

However, IKEA and no man to control even the world's largest home products channel, he'd own brand as well as its own patented product to the ultimate global coverage, IKEA's first brand of "integration" mode, enabling the manufacturer brand and retailer brand. Based on this concept, IKEA has always adhered to by all the product yourself design and have their patent, each year more than 100 designers working in a crazy day and night to ensure that "all of the products, all of the patent," for all the products are marked with the "Design and Quality, IKEA of Sweden". So for IKEA, will never exist in the so-called "upstream manufacturers", nor is there any one manufacturer can on his so-called "distribution chain management".

In a sense, IKEA is the world's only company operating as a channel for product operation and also the success of the Agency, he's "integrated brand strategy" is largely a smooth integration of the key industrial chain.

Second, the "module"-oriented research and development design system and low energy consumption makes high-performance

IKEA's research and development system is very unique to the low cost and high efficiency-to-one. IKEA invented the "module" style furniture design methods, this will not only design cost is lowered (because basic each design are manufactured, not because a large number of design does not have to be implemented in the Scout leaders and waste costs), and the product cost can be reduced (modular means you can mass production and mass logistics).

IKEA's design philosophy is "the same price of the product whose design costs less," and, therefore, designers in the design competition focus often focus on whether the use of a screw or whether more cost-effective use of an iron rods, so not only can have the benefits of cost reduction, and often produces outstanding creativity.

Possible IKEA is the only deep understanding of the "simple is beautiful", he used the "simple" to lower customer costs, use the "beautiful" to enhance customer value and customer-value no one horse.

3. OEM management around the globe seeking competitive advantage

Although all product design work done by IKEA, but in order to minimize manufacturing costs, IKEA worldwide for manufacturing outsourcing. IKEA in 33 countries worldwide have 40 Trade Office is responsible for the operation of global OEM's in each of the 55 countries with more than 2000 vendors to expand the fierce competition, the only guarantee of quality at the same time to achieve the lowest cost of vendor is likely to be major orders, and these vendors after receiving the order form is not to "peace of mind," because IKEA will often go to assess them.

Although IKEA suppliers from different countries and regions, but IKEA require suppliers to provide internationalization and standardized products, this means that IKEA products in the world have the same quality and uniform styles.