IKEA is rapidly increasing the number of stores in East Asia. IKEA currently is operating 16 stores in China. It is currently recording double-digit operating profit ratio. IKEA’s profit rates have also improved significantly. Sales of IKEA products also increased as the number of middle class people increased rapidly because Chinese income levels increased. The Chinese enjoyed sitting in exhibition furniture and chatting instead of shopping because IKEA product was too expensive for Chinese consumer.

It took a long time for businesses to stabilize in Chinese markets. In 1977, IKEA entered China through a franchise agreement with Hong Kong's Dairy Farm Group. Twenty years later in 2006, Inca Group, the holding company of IKEA, entered the Japanese market directly. However, IKEA withdrew after 12 years due to sluggish business.

IKEA first entered the Japanese market by using a franchise contract with the Japanese furniture importer Actus in 1977. Swedish furniture maker IKEA entered Japanese and Chinese markets and struggled in the early days of the business. In addition, Hanssem and IKEA are actively managing and have good performance not only in Korea but also in foreign markets. In particular, Hanssem has implemented various strategies based on its core competence in response to IKEA's strategy. Conclusion - Both companies have properly balanced localization elements and standardization strategies that value the needs of local consumers. IKEA has also used a variety of strategies changes to match the situation in Korea. Results - Along with its core competences, Hanssem has pursued strategic changes to compensate for its weaknesses. In addition, methods such as field observation and interview with stakeholder were performed to collect in-depth understanding and information about the companies. Research design, data, and methodology - As a research method, a general method of case studies, literature research, is carried out through academic research results, reports, articles, and statistics. Purpose - This study analyzes how Hanssem, which ranks first in domestic market in the furniture industry, responds to the expansion of IKEA, a large overseas furniture maker, and investigates the recent strategic changes of Hanssem and IKEA.

Ikea marketing strategy case study