Home furnishings retailer IKEA has launched a new strategy themed with "The Lowest Price in Beijing". This is the first time that it has ever taken this strategy in China since its entry into the market.
According to the new strategy, the price for various kinds of goods with the signboard of "The Lowest Price in Beijing" in IKEA is about 20% cheaper than that in other home furnishings markets. This strategy has already been well welcomed by customers, many of whom visited IKEA for those products at the lowest price.
Geng Dawei, director of the IKEA Siyuanqiao store in Beijing, says that IKEA is offering the lowest price for more than 120 kinds of goods. Geng says that IKEA has always maintained the strategy of low pricing since it entered China. He says that adopting the sign of "The Lowest Price in Beijing" is aimed to attract more customers and eliminate the idea among people that IKEA is only targeting wealthy Chinese consumers.
Geng adds that this strategy will not be the start of a price war in Beijing. He says that IKEA just wants to reduce the price to an affordable level for common consumers.