German Union of furniture dealers expressed disappointment with IKEA strategy
The German Union of furniture dealers expressed its disappointment with IKEA strategy - IKEA advertised the decline of prices of a number of products, while the rise of prices of the remaining part of products has not been made public.
Sep 10, 2004. /Lesprom Network/. The German Union of furniture dealers expressed its disappointment with IKEA strategy - IKEA advertised the decline of prices of a number of products, while the rise of prices of the remaining part of products has not been made public.
IKEA announced the decline of prices by 6% from September,1 by a total of EUR 130 million, while the rise of prices of 115 product types by 5.6% has not been made public. The following conclusion was made by the experts of the German union of furniture dealers who analyzed the prices.
IKEA prices in Germany were considerably higher compared with other countries of operation: for instance prices in Austria were 17% lower. One of the union’s executives Dirk Uve Klass praised the approach of his Swedish colleagues: ‘This is one of the most incredible ways to raise the prices without causing the disappointment of consumers. German furniture industry should take it as a lesson’
However IKEA advertising instruments also caused a negative reaction in other countries. During the opening of an IKEA trade center in Dzhida, Saudi Arabia 3 people died and 17 more were injured as a result of a crush: more than 70 thousand people came to attend the opening. Every customer wanted to get the bonus – the first 50 customers were promised to get buys worth EUR 109 for free, another 200 people were promised a bonus of EUR 20.