Source link : https://jpc.news/2024/11/10/lifestyle/article12481/
How does social media influence foreign brands like Ikea and Muji in China?
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Foreign Lifestyle Brands Like Ikea and Muji Place Bold Bets on the Lucrative Chinese Market
Foreign Lifestyle Brands Like Ikea and Muji Place Bold Bets on the Lucrative Chinese Market
The Growing Appeal of Lifestyle Brands in China
In recent years, foreign lifestyle brands like Ikea and Muji have focused their strategies on the expansive Chinese market. With a growing middle class and a rising demand for high-quality, affordable home furnishings, these brands are poised to capture significant market share in China.
Market Opportunities
Increased Disposable Income: China’s economic boom has led to increased disposable income, encouraging consumers to invest in lifestyle products.
XiaoHongShu Influence: Social media platforms like XiaoHongShu (RED) play a crucial role in promoting lifestyle brands to young consumers.
Urbanization: The rapid urbanization in China has stimulated demand for modern home furnishings.
Brand Strategies: Ikea and Muji
Ikea’s Approach
Ikea has tailored its offerings to meet the unique preferences of Chinese consumers. This includes:
Localized Product Lines: Products that cater to traditional Chinese aesthetics and spaces.
Store Expansion: Opening more stores in tier 2 and tier 3 cities to reach a broader demographic.
Sustainability Focus: Emphasizing eco-friendly options to attract environmentally conscious consumers.
Economic Resilience: The Continued Appeal of Premium Brands in China Despite facing economic hurdles, affluent Chinese consumers remain inclined to invest in luxury goods renowned for their superior quality and dependability, according to international brands and retailers. This trend persists as foreign companies intensify their efforts to establish a presence in what is recognized as the largest consumer market globally. Expanding Horizons for International Brands Notable brands such as Singapore’s Osim, Sweden’s Ikea, and Japan’s Muji are committed to increasing their retail footprint within mainland China. These firms have reported consistent growth prospects fueled by the wealthy segment of the population that prioritizes high-quality products over budget options. Lily Yang, the assistant brand director for Osim China, highlights this preference: “Individuals with substantial means place significant value on quality and often gravitate towards internationally recognized brands.” She elaborates that ”for these consumers, achieving value isn’t simply about securing low prices; it’s more about ensuring that there’s a tangible correlation between product quality and its price tag.” Strong Demand at Major Business Events During her recent remarks at the China International Import Expo (CIIE) held in Shanghai—a premier global import showcase—Yang noted an uptick in interest surrounding Osim’s premium massage chairs priced up to 40,000 yuan (approximately USD 5,582). The event marked an excellent opportunity for businesses like Osim to connect with potential customers. “Our performance metrics from this year’s CIIE indicate we will exceed our initial forecasts,” Yang stated confidently. “Osim plans to accelerate its growth trajectory within China while targeting emerging first-tier cities like Suzhou and Chengdu.” Retail Strategy and Local Manufacturing Osim has secured a commanding position in mainland China’s market with around 200 stores—it represents half of its total global operations. To bolster local production capabilities further, the company operates a factory located just outside Shanghai in Suzhou that specializes in manufacturing massage chairs tailored specifically for Chinese consumers. As they continue embracing expansion notwithstanding economic uncertainties, these international retailers underscore an enduring commitment among affluent Chinese buyers toward investing sustainably in high-quality products rather than succumbing solely to discounts or lower costs. The post Foreign Lifestyle Brands Like Ikea and Muji Place Bold Bets on the Lucrative Chinese Market first appeared on JPC News. —-
Author : Jean-Pierre CHALLOT
Publish date : 2024-11-10 09:38:25
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