Ikea to enter home electronics market

www.thelocal.se ^ | 04/17/2012 | Rebecca Martin

[WesternCulture]

I wish IKEA good luck. I don't know much about the market for home electronics in America, but If they manage to compete over here in Europe with the German chain of Media Markt, I'll readily admit Mr. Kamprad (founder and owner of IKEA) to be the greatest business genius on Earth.

The slogan of Media Markt is "Ich bin doch nicht blöd!" - I am not stupid! - and their unparallelled success throughout the European Continent and in China indicates that we PC Europeans and the brainwashed Chinese actually aren't that very stupid at all.

20 years ago, the average Swede could afford to buy 1 28" color TV for the amount of money he earned on a monthly basis after having paid his income tax.

Today, the average Swede earns around $3000 after having paid income tax and for that amount of money he could buy 10 flat screen 32" TVs at Media Markt and still have money over for doing some shopping at IKEA!

The article:

"Swedish electronics chains, already battling a sinking market, will be forced to compete on a whole new scale as Swedish furniture giant Ikea launches plans to enter the market with a new range of furniture with built-in electronics.

We have great expectations for this. I think we can step in and create a new market, a new way to use home electronics in the living room,” said Tolga Öncu, sales manager for Ikea Sweden, to news agency TT.

According to Ikea, the start will be a range of living room furniture called Uppleva -- a Swedish word which means 'Experience' in English -- designed to house a built-in TV and home cinema system.

“With this integrated audio-visual piece we can offer attractive, wireless and affordable solutions to our many customers. Uppleva is an innovative step into a new market for Ikea,” Öncu said in a statement.

However, according to Jonas Arnberg, a consultant at HUI Research, (formerly the Swedish Retail Institute), Ikea’s new venture was unexpected.

“It is a business where none of the main operators are doing particularly well. What everyone is waiting for is one to disappear and instead another enters the race,” he told TT.

Arnberg does not think that Ikea's foray into home electronics will do as well as the Swedish retailer's venture into the white goods market has done.

“If it is indeed possible that Ikea underestimates something, this might be it. This is an incredibly tough business, “said Arnberg to TT.

Ikea is set to start selling their furniture with built in electronics in five countries in June. The products will then be launched globally in 2013."

[Tijeras_Slim]

It’s been tried....we called it HEATHKIT.

[WesternCulture]

“I have successfully assembled all IKEA furniture I have ever touched (for family members). There were no missing parts, but it was all pot metal (fasteners) and particle board. Knowing it came from China makes me suspicious of what they put in the particle board.”

- I get your point.

I’d say a lot of the stuff IKEA sells is very priceworthy and who has the time to run around in every furniture store in town anyway?

Sometimes in life you simply need a cheap piece of furniture and on those occasions, IKEA is really the perfect solution.

[sportutegrl]

That’s nice but I don’t need a dvd player made out of wood.

Ikea's 'wood' isn't made out of wood. They invented pine veneer.

[Bartholomew Roberts]

I suggest you go to an IKEA, the one I have been to is in SE Mass. Virtually every non-food good in the store was made in China and I checked many labels throughout the store.

Are our products made in China?

Today, approximately 17% of our range is produced in China and the Republic of China (Taiwan - BR). IKEA is in control of the product development process and through our Trading areas we work closely together with our suppliers in place, which is an advantage when it comes to securing product quality.

A product risk assessment is made during the development of the product. Tests and follow-ups are done both before we start the production and then on continues basis. We test our products according to our own requirements and applicable international standards/legislation at accredited internal and external test laboratories.

IKEA products shall always be safe to use.　IKEA believe it’s possible to produce safe high quality products to low prices in China.

Certainly not "Virtually every..." but I am surprised that Chinese and Taiwanese (note the lack of distinction) make up 17%.

Again, I think you aren't giving IKEA a fair shake. It is a globally sourced company. That's just what it is!

[DesertSapper]

hope the quality is better than the quality of their furnitures

No kidding. However, since the electronics are IN the furniture, that might be a moot point.

[DesertSapper]

I've been to the IKEA near me 3 or 4 times. Honestly, very few items in the store appeal to me - especially the glossy-finish 'euro' furniture. The "follow the colored line on the floor" store layout was interesting the first time but was just annoying by my second visit. I haven't returned to IKEA in at least 18 months and probably haven't missed a thing.

My sister and sister-in-law love the store though. To each their own I guess.

[1rudeboy]

The table I purchased at IKEA was made in the Czech Republic. Real wood, easy to assemble, no missing or ill-fitting parts.

I could've gotten a similar table at another "Scandanavian design" store for about $400 more. Why? I think the many of the people who dislike IKEA dislike it because they realize they got ripped-off elsewhere.

[Atlas Sneezed]

I installed a garage full of cabinets from Ikea, and wished I’d had them for my interior cabinets instead of expansive custom.

My architect remodeled his kitchen with Ikea cabinets.

I’ve never experienced a quality failure with Ikea. My only complaint is that the nearest store is more than 2 hours away, and mail order is impractical.

I think selling TVs and electronics that fit cabinets, and vice-versa is brilliant, and will prove successful. (Husband picks the TV, wife picks the cabinet, and they actually fit!)

[Atlas Sneezed]

There were no missing parts, but it was all pot metal (fasteners) and particle board. Knowing it came from China makes me suspicious of what they put in the particle board.

---

Some of the fasteners are die cast (which you can disparage as “pot metal”), but the screws aren’t. They don’t fail, because they use “engineering” to be sure they are adequate to the job.

Particle board is perfectly good quality for dry environments, with engineering to ensure structural soundness. The only occasional downside of particle board is its weight.

Unless you’re eating your furniture, you’re probably safe, and don’t need to worry about unhealthy ingredients (what are you worried about?)

[Moonman62]

America does not need outdated Swedish Socialism from the past, just like we Swedes ourselves have done away with pretty much of it.

We felt similarly during Reagan, but since he left office it's been downhill ever since.

[palmer]

Unless you're eating your furniture, you're probably safe

Particle board uses some sort of chemical to hold it together which constantly evaporates inside your house until the particle board turns back into dust. China has the absolute worst record in terms of using hazardous substances in their products. They seem to take great pride in turning out "food" containing fake protein and metals mixed with cadmium. Buying their crap is simply insane, but our country lost its sanity a while ago.

[WesternCulture]

“We felt similarly during Reagan, but since he left office it’s been downhill ever since.”

- Reagan was a true leader.

No one needs Socialism.

Perhaps, Reagan wasn’t a genius in the area of economics.

But he dared to be a true patriot in a time when patriotism had few believers.

Reagan stood up for something.

Few dare today.

I don’t believe in Breivik’s madness.

But I’m not afraid to pick up a gun and make a statement.

Sometimes, I feel I carry Viking genes for a reason.

[CodeToad]

Just another one of WesternCulture's 'America Sucks! Europe is Better!' threads. Thread #18.