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It's OK. After a comprehensive evaluation of the store, the official finally announced the closure of the Yangpu store based on the consumption preferences of local consumers and the overall layout of the brand in Shanghai.
About two years ago, IKEA opened stores in several cities and entered a rapid expansion. At the same time, consumers can buy goods in the store, and merchants accumulate points for customers. However, the IKEA Yangpu store in Shanghai has not overcome the closure of the store, although other IKEA projects in Shanghai are still in progress.
This also shows that IKEA attaches great importance to the Shanghai market, and the closure of the Yangpu store is only the result of a comprehensive assessment.
The consumption level of Shanghai residents has generally increased, and many shopping malls in Shanghai have entered a period of stable income growth. However, the epidemic in Shanghai has made it impossible for some residents to go out, and the traffic of the mall has continued to decline, which eventually led to a decline in the turnover of the mall. Despite this, many stores have maintained a steady state of growth, including IKEA.
As a leader in the field, IKEA attaches great importance to the global market, and has opened stores in the first sections of the road in many cities. In the early stage of the development of Yangpu store, the operation is not bad, and the product sales can be traced to none. However, the development of the company needs to be comprehensively planned and evaluated, and the profitability of a shopping mall does not mean that the company is profitable, after all, there are still stores that operate at a loss.
The excessive volume of Shanghai is an important reason to ensure the development of multiple brands, however, IKEA has to make a trade-off, choose high-quality projects, and abandon some projects.
In general, IKEA has taken a very cautious closure and operation plan with the Shanghai store as part of its global strategy. In addition, IKEA constantly adjusts its product range to the needs and preferences of the people living in a given city to ensure that the store is profitable. On the other hand, the Yangpu store in Shanghai was officially shut down, and more than two years of operation can only be one of the company's experiences.
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It's still good, and it's very powerful, which makes people feel that their ability is relatively large.
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Affected by the epidemic, I think that in terms of this shopping mall, his business performance in the past two years has not been particularly good.
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It is reported that the IKEA Yangpu store will remain open until early July. From June 10th to July 6th, IKEA Yangpu store will offer members-only activities, including hundreds of products with 5% off and double points for members. After July 6, consumers in Yangpu and surrounding areas will still be able to access services from other IKEA offline stores and e-commerce platforms in Shanghai.
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It means that IKEA's exploration of the transformation of the small commodity market in China has failed. From 1996 to 1998, IKEA established the first batch of stores in Shanghai, Beijing and other cities, which were initially presented as large warehouses, all in order to improve the trust and dependence of local residents on IKEA products, in order to cater to the needs of younger and more fashionable users, in recent years, IKEA has also changed from a large warehouse to a small store. <>
Compared with the business area of 30,000 or 40,000 square meters in other places in Shanghai, the store area in Yangpu only occupies 2 3 of the former, and IKEA currently pays more attention to the overall situation of the entire consumer market, hoping to integrate various business models to provide consumers with more choices and more customers at IKEA. Regarding the current closure of the Yangpu market in Shanghai, many netizens said that they did not know that IKEA would have such a market established in Yangpu. Although IKEA has upgraded its Yangpu store several times since last year, the results are still not good.
Even if IKEA provides the appropriate level of service, it has also improved its product portfolio and services closer to China, but the results have not been good. China is one of IKEA's important markets, and in order to win this market, IKEA has also launched many online services, and online service stores will inevitably attract a large part of the company's capital and personnel, so it is inevitable to close Yangpu stores that cannot bring more benefits to the company for the time being. IKEA's other two competitors, Home and Red Star Macalline, have long since shifted from offline to online, and Red Star Macalline has given customers more trust in their own brands through offline portal experiences.
At present, IKEA has not made too many changes in its e-commerce strategy, and there have been no subversive actions such as Red Star Macalline, which may be due to the fact that IKEA's offline model is too mature, but under the current epidemic situation, the online strategy must be IKEA's focus on breakthroughs.
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InIn the past two years, IKEA China has actively promoted the "future" strategy and achieved relatively fruitful resultsBut it was suddenly announced in the near future. IKEA China will close the IKEA Shanghai Yangpu store in July. Such a sudden news sparked heated discussions among netizens.
In the current life of the epidemic, the real industry has suffered a huge impact, especially now that the industry is constantly changing, among which the furniture industry is more typical, IKEA, as a more well-known brand in the furniture, is creating a better home life in a new and more localized form. <>
From the original brick-and-mortar industry to the Internet industry, it is also to better cater to the market, and part of the transformation and adjustment of IKEA China is also to continue to create a better customer experience. IKEA is also constantly trying to transform and add new businesses and channelsIKEA China said that this decision is also made after a comprehensive assessment of IKEA Yangpu**, and it is also a comprehensive analysis of the consumer behavior and preferences of the surrounding service business districts, considering the overall layout of the Shanghai market, and its comprehensive analysis will close the store, and IKEA China also said that the shopping capacity continues to grow, and now the real economy is still the core component of retail business, and it is also the main part of the Internet economy. At present, the transformation of the retail industry and the internal adjustment of IKEA are also better suited to the Chinese market. At the same time, Shanghai will continue to be a key project of IKEA, and the IKEA Shanghai project will continue to be promoted.
IKEA has changed a lot in China, and with the changes in the Chinese market, IKEA has also taken the initiative to change its business model to meet the needs of the Chinese market. Let's look forward to the transformation of IKEA, which will also provide a reference for the domestic real industry, which is still an important part of the Chinese market, which plays a vital role, and we can also see that China's real industry is also constantly transforming, let us look forward to the transformation of the domestic retail market.
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IKEA China said in the announcement that in the face of the increasingly complex retail market and the changes in consumer behavior brought about by factors such as digitalization and the epidemic, IKEA China will transform, close or add new business units and channels when necessary, and explore various innovative customer touch point models. At the same time, IKEA continues to stress that it has always had confidence in the Shanghai market. At present, IKEA operates the world's first "Future Home Experience Space" in Xuhui, Shanghai, with 2 standard stores in Baoshan and Beicai and 1 city store in Jing'an.
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Do you think this company has changed dramatically in China, they used to be very arrogant towards consumers, and they were very strict about their products, but in the years they have been in China, their products have become more and more affordable, and they have also introduced a lot of novelty gadgets.
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Changed their business model, and also changed the state of business, the economy has also achieved **, gained more income, obtained a higher status, and won the love and support of many people.
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The epidemic has indeed brought a lot of negative effects to the industry, and the epidemic problem in Shanghai is obvious to everyone, but with the joint efforts of everyone, the epidemic situation in Shanghai is slowly improving, and everyone's life is beginning to get on the right track. However, during the epidemic prevention and control period, everyone stayed at home and did not have the opportunity to go out at all, which will definitely cause serious losses to the service industry.
The pandemic has reduced the sales volume of clothing stores. Shanghai is a bustling metropolis. There are many types of markets and some restaurants, if everyone is not trapped by the epidemic, they spend more money every day, and they need to buy a lot of new clothes and food, so that the development of Shanghai can enter a state of circulation, and the boss can also sell things to get some profits, and those migrant workers can also buy some daily necessities after earning money.
But an epidemic has broken all the rules, and everyone doesn't need to buy some new clothes when they stay at home, as long as they have a few sets of pajamas to meet their daily needs. Those stores also need to close, things can't be sold, sales will naturally weaken, but stores need to pay water, electricity and rent, and if they can't make ends meet, they will naturally go out of business. <>
As a result, many people have lost their jobs. If these stores are closed, then all the staff in a store need to be laid off, and those managers or general managers may be transferred back to the headquarters or transferred to other branches by the headquarters, but those ordinary employees have no way to go but to find a new job, which also makes their lives more difficult, originally many people went to Shanghai from other places to work, but the situation in Shanghai also made them have to leave. <>
The epidemic problem has not only caused a serious impact on one industry, but also has a cascading effect, resulting in irreversible losses in other industries. But in the face of the epidemic, life is still very important, I hope everyone can relax their minds, and they can find a new job if they are gone, but if their lives are gone, they are really gone.
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During the months of isolation and protection, IKEA can't open stores and can't sell things, but rent, utilities and employee salaries are a lot of costs, even if the quarantine is over, everyone is more inclined to shop online, so for IKEA physical stores, there is no profit and can only close a few to reduce costs.
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It has caused a certain blow to all walks of life, and many physical stores are facing the risk of closure due to poor management, which makes the development of the industry lose its former vitality, and it is necessary to actively adjust the sales channels of offline stores and seek new development directions for all walks of life.
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IKEA has only been in business for two years, and the reason for the closure is that it is not possible to get a corresponding return on investment from it for the time being, especially in today's pandemic situation, which is even more difficult to achieve. Opening a store in Shanghai, in fact, IKEA is to expand the popularity of its own brand and improve the stickiness of Shanghai customers to the IKEA brand, but the current epidemic situation has made people more dependent on online consumption, and IKEA mainly attracts customers in the form of large warehouses. <>
What they need is for customers to visit their stores, visit their stores from start to finish, pretend to be early books and buy a lot of products, and the epidemic will gradually reduce this kind of demand. In Shanghai, IKEA has opened three branches, located in Baoshan and Beicai, and Yangpu is the second. After looking at Yangpu's footfall and their needs, it is very common business practice to close it.
Two years ago, Yiting Hongjia has moved into Tmall and is rapidly transforming to Internet e-commerce. <>
IKEA has accelerated the digitalization of its own products and launched a number of online channels such as shopping mini programs and ***. Through such online channels, IKEA has expanded its service staff from 100 million to 1 billion people, and IKEA no longer needs to rely solely on the offline ecological network to provide consumers with corresponding service experience. In fact, IKEA has closed its stores not only in Shanghai, but also in Guiyang, Taiyuan, Wuhan and other places.
At the moment of the epidemic, many offline stores have faced closures and slowing growth. Online consumption channels may become the mainstream of people's consumption. <>
For home furnishing brands like IKEA, which rely more on customers to visit the site before making up their minds, the impact of the epidemic on them is greater than that of other industries. Although this closure of the store will affect the public's impression of IKEA to a certain extent and reduce the drainage of customers in this regard, in the long run, it may become an opportunity to continue to develop on IKEA's online network, and will also enable more people to enter the e-commerce brand and then get the corresponding customer traffic.
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Because Shanghai has been closed for several months, the capital chain is broken, and no one spends, so it can't survive.
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is because the impact of the epidemic is relatively serious now, and some offline shopping malls are more difficult to operate, so they can't survive.
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Affected by the epidemic, the economic benefits of many places are not particularly good, and people's consumption level is limited.
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