IKEA Wants to Make a Home Version of "Alibaba", Selling its Own Furniture and Selling Competitive Products.

The transformation of IKEA in China has further accelerated.

According to FT Chinese website, IKEA is planning to launch an online sales platform that not only sells its own products, but also provides online sales channels for other competitions. According to Torbjorn Loof, CEO of Inter Ikea, the sales platform has been finalized and is currently being tested on e-commerce platforms such as Amazon or Alibaba to do the first sale test.

 

Since August 2018, after IKEA launched its e-commerce service, the transformation speed has gradually accelerated.

 

From the financial report, in the fiscal year ending August 2018, IKEA's net profit fell more than 40%, from 2.47 billion euros to 1.47 billion euros. This is not difficult to understand, why IKEA changed its past attitude towards e-commerce, and entered the e-commerce industry into a transition period. In order to make the e-commerce business run smoothly, IKEA has even established a logistics distribution system and continuously opened a new logistics distribution center.

 

The IKEA in the transition has also experienced many outside questions. Because of the high cost of its business transformation, it only costs 5.8 billion euros to open a new store around the world. IKEA has to upgrade its business while also streamlining its team. According to the news report, IKEA will cancel 7,500 jobs in the next two years, including 160 jobs in China.

 

 

(Source: JJgle.com)

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