The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Woman killed in stopped car struck by bus on highway

  • 3

    Koreans wish to work less than 40 hours per week: survey

  • 5

    Yoon faces strong political backlash after Tokyo summit

  • 7

    Video footage highlights details of stepmother's fatal abuse of 12-year-old

  • 9

    Actor Yoo Ah-in to appear for questioning Friday over alleged drug use

  • 11

    INTERVIEWNorth Korean-born chef delights Southerners' taste buds, breaks down cultural barriers

  • 13

    New EU trade policies unnerve Korean firms

  • 15

    North Korea fires ballistic missile as US bombers join drills

  • 17

    Whisky sales at E-Mart outlets exceed soju sales in Jan.-Feb. period

  • 19

    Could Doosan Robotics be valued at 1 trillion won in IPO?

  • 2

    Korea sets record of half million economically inactive youth

  • 4

    Mask mandate on public transportation to end Monday

  • 6

    Apple Pay's imminent launch in Korea draws mixed responses

  • 8

    Centre Pompidou's Korean branch to open in 63 Building

  • 10

    Commuters still wear masks despite end of mask mandate on public transportation

  • 12

    KAIST student becomes first Korean recipient of Apple Scholars fellowship

  • 14

    ANALYSISYoon-Kishida summit may 'raise ceiling' for trilateral cooperation with US: expert

  • 16

    Land minister fortifies city building cooperation with Indonesia

  • 18

    UBS eyeing swoop for Credit Suisse, sources say, amid fears of banking contagion

  • 20

    Trump expects to be arrested Tuesday as DA eyes charges

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Tue, March 21, 2023 | 20:56
Editorial
IKEA's entry into Korea
Posted : 2014-11-26 17:43
Updated : 2014-11-26 17:43
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
IKEA is a huge company based in Sweden with an annual global turnover of over $40 billion and 349 stores in 43 countries around the world.

The name "IKEA" is familiar to many Korean consumers, but for one reason or another, it had yet to make an entry into the domestic market here before this year.

The company has design and cultural centers and even provides accommodation in certain places, but the primary focus of its business remains competitively priced furniture. The popularity of IKEA products is astounding in the global market.

It was great to hear therefore when IKEA announced that it would enter the Korean market, establishing a huge distribution and sales outlet in Gwangmyeong, Gyonggi Province.

The facility is all but completed, but a number of problems have emerged to temper the company's highly anticipated launch. Most recently was a furor over the sale of maps in its stores that identify the East Sea as the Sea of Japan.

After strong protests by consumer groups, Andre Schmidtgall, chief manager of IKEA Korea, held a press conference to apologize for the incident and explained that an internal investigation was underway.

Added to this incident are voices of consumer groups and the government that say that IKEA's products are overpriced.

When considering the fact IKEA achieved its success over the past 70 years largely on the back of competitive pricing, it is unusual that the company would overprice its products as it enters a lucrative new market.

Perhaps the rational for this is simple: Korean consumers tend to prefer products that are more expensive.

Even when looking at luxury products, brands such as Prada, Gucci and Salvatore Ferregamo, just to name a few, have increased prices here even though international prices have been falling and the value of the Korean won rising.

The truth is that Korean consumers, especially at the higher end of the spectrum, have created a strange market where overpricing is actually an effective marketing strategy.

By venturing into the Korean market for the first time, IKEA has obviously decided that this could be right strategy, luring consumers into believing their brand provides high-quality products.

If that is indeed IKEA's intention, it will have to conduct more detailed studies concerning the Korean market. Carmakers could tell them a very different story for instance.

In the past, imported car brands mostly brought in top of the range vehicles priced at hundreds of millions of won ― these sold in small numbers.

Up until the early 2000s, the market share for high-end cars remained at around 1 percent of some 1.5 million cars sold in Korea every year.

Since then, their strategy has changed. They decided to market more low-cost and competitive models, including diesel and hybrid models, bringing their market share up to over 10 percent last year.

IKEA will have to look at the overall Korean market to determine what it is in its best interest and what is best for Korean customers too.

 
LG Group
Top 10 Stories
1Woman killed in stopped car struck by bus on highway Woman killed in stopped car struck by bus on highway
2Korea sets record of half million economically inactive youth Korea sets record of half million economically inactive youth
3Commuters still wear masks despite end of mask mandate on public transportation Commuters still wear masks despite end of mask mandate on public transportation
4[INTERVIEW] North Korean-born chef delights Southerners' taste buds, breaks down cultural barriers INTERVIEWNorth Korean-born chef delights Southerners' taste buds, breaks down cultural barriers
5KAIST student becomes first Korean recipient of Apple Scholars fellowship KAIST student becomes first Korean recipient of Apple Scholars fellowship
6COVID-hit Myeong-dong bounces back as tourists return COVID-hit Myeong-dong bounces back as tourists return
7Brides in early 40s outnumber those in early 20s Brides in early 40s outnumber those in early 20s
8Public officials reluctant to dine with coworkers Public officials reluctant to dine with coworkers
9OTT service providers negatively impacted by illegal streaming website OTT service providers negatively impacted by illegal streaming website
10[ANALYSIS] Yoon-Kishida meeting raises expectations of 3-way summit with China ANALYSISYoon-Kishida meeting raises expectations of 3-way summit with China
Top 5 Entertainment News
1Centre Pompidou's Korean branch to open in 63 Building Centre Pompidou's Korean branch to open in 63 Building
2Celebrities head back abroad to film K-food reality shows Celebrities head back abroad to film K-food reality shows
3Park Sung-woong talks about filming 'Woong Nam' with comedian-turned-director Park Sung-woong talks about filming 'Woong Nam' with comedian-turned-director
4Lee Se-young to lead MBC's new series 'The Story of Park's Marriage Contract' Lee Se-young to lead MBC's new series 'The Story of Park's Marriage Contract'
5From sky to deserted islands, two artists' documentation of nature adds surreal touch to reality From sky to deserted islands, two artists' documentation of nature adds surreal touch to reality
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group