According to the latest trend, the online purchase is putting pressure on retail stores to go online to increase their sales and revenue. To gain more customers retailers are showing importance to optimizing a mix of online and offline tactics. Researches have shown that people tend to look online before purchasing any products. Moreover, a company’s websites and email generate business for both online channels and offline stores.
To keep up with the new ‘hype’ traditional brands are modifying their business models to capitalize on the consumer preference by developing new strategies for online and in-store. By giving thrust authenticity and relevance is the main step for survival as well as reinvention. In this task the topic will discuss the foreign brand IKEA, in comparison with Chinese brand Gome, and Malaysian brand Parkson.
IKEA owns approximately 345 stores worldwide, but only sells online in 26 markets. The IKEA group is now speeding up in e-commence expansion although the most of the deliver does not offer full range in online.
The Swedish firm, IKEA, is still investing heavily on physical stores however the Germany head IKEA Group expects 10% sales to come from e-commerce. IKEA is reluctant, at this moment, to embrace e-commerce because it wants to give the customers a shopping experience, such as cafes with play areas as well as driving incidental purchases of high margin accessories. “When associates are engaged and energized, they bring a brand to life through