Case Study on Win Or Failure Of IKEA in Japan

IKEA had a failed first attempt at entering the Japanese market in 1974. Their
furniture was too big and didn't go with the Japanese living style. After 12 years,
IKEA decided to leave the market.

In 2006, IKEA returned to Japan with a new strategy. They conducted

observational research of the Japanese consumer lifestyle from those living in
single-family houses to studios. They learned that Japanese consumers prioritize
convenience and safety more than paying less. They also learned that Japanese
homes are much smaller than homes in other countries. With this new
understanding of the Japanese market, IKEA redesigned their furniture to be
smaller and more affordable. They also offered a delivery option with furniture
assembly. This helped win Japanese customers' hearts. Since 2006, IKEA has
opened 6 stores in Japan and they have been quite successful. In 2019, IKEA Japan
generated €1.3 billion in revenue, making it the company's 10th largest market.

IKEA's success in Japan is a testament to the company's ability to learn from its
mistakes and adapt to new markets. It is also a testament to the importance of
understanding the local culture and consumer behavior.

Here are some of the reasons why IKEA was able to succeed in Japan after its
initial failure:

They did their research: IKEA conducted extensive research on the Japanese
market before they made their comeback. They learned about the Japanese
consumer lifestyle, preferences, and needs. This allowed them to design products
and services that were tailored to the Japanese market.
They adapted their business model: IKEA changed their business model to better
fit the Japanese market. They offered smaller, more affordable furniture and a
delivery option with furniture assembly. This made their products more accessible
to Japanese consumers.

They invested in marketing: IKEA invested heavily in marketing their products in

Japan. They ran TV commercials, print ads, and online campaigns. This helped to
raise awareness of IKEA and its products among Japanese consumers.

IKEA's success in Japan is a great example of how a company can overcome failure
and achieve success. By learning from their mistakes, adapting to the local
market, and investing in marketing, IKEA was able to become a major player in
the Japanese furniture market