IKEA Korea develops rapidly and local home business is under pressure

IKEA has expressed interest in the Korean market 10 years ago. Although there is no IKEA store in Korea, IKEA is very popular for young people who have used it abroad or purchased IKEA products online. This year, IKEA has signed a memorandum with Jiangdong District to open a 13,000-square-meter store in the commercial complex of Gaodedong. The opening time of the store is expected to be in 2011, and the details are still determined. This will be the third store opened by IKEA in South Korea. The first store will be in Guangming City and is scheduled to open in January. The second will be in Gaoyang City in the north. A government official in Koto said: "We are still discussing all the possibilities. We are not sure of any details yet, but hope that the agreement will bring more opportunities to the Gaode business district."

The IKEA Group's global revenues in 2011 exceeded $36.6 billion, and its arrival will likely attract more customers and merchants to the business district, making it a high value-added information and knowledge technology cluster. According to insiders, IKEA stores in the Gaode business district may be located close to the Olympic Expressway, the Ring Expressway and the Jungbu Expressway, which will be connected to Metro Line 9 after the opening. Relative to the city center or southern Seoul

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In the bustling area, the low rent here is also a big reason to attract IKEA. This news has undoubtedly increased the anxiety of Korean domestic furniture manufacturers. Local furniture manufacturers have asked the Gyeonggi Province Provincial Committee to fully evaluate the impact that IKEA may have on the local market. They called in the petition: “The IKEA store of -13.1 million square meters will be the largest IKEA store in Asia, which will not only have a huge impact on the furniture industry, but also affect supermarkets, traditional markets and other industries.” It is reported that a related person in the retail industry said: "Considering that IKEA intends to buy land throughout the country, it is estimated that IKEA will open 10 stores in South Korea."

And some companies have responded quickly and responded well. For example, Hanssaem, a Korean domestic furniture company, opened a 1,200-square-meter store near furniture store, kitchen equipment and other products near the IKEA store in Guangming in October, similar to IKEA's philosophy. The company hopes that its stores and IKEA can create synergies and attract more furniture dealers to gather around. IKEA's product INFORMATION INTERNATIONAL

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