Service Innovation of IKEA’s self-service in China

Introduction According to Chinese authorities, the standard of living has steadily improved from the 1980s to the 1990s, and in recent years many families have come to be able to get their houses at affordable prices. (Zhan, 1998) In this case, the competition between furniture markets is becoming increasingly intense. In today's market, some sellers offer various kinds of variable furniture with rich appearance or advanced technology. In addition, some companies offer low cost products.

As mentioned above, Chinese consumers are very strict in terms of service. They are used to providing high quality services and are helping someone complete various tasks. Ikea's self-service and the concept of DIY are unacceptable for Chinese people. So, are there any other service level issues that I can not accept? IKEA also faces another challenge to service. In short, despite the increasing number of purchases in China, there is a long lead time to transport from Europe to other procurement markets. Historically, Chinese stores have not required to sell products in the catalog, but they have required to advertise and sell what is currently in the store. Thanks to efforts to improve this situation, such as expansion of domestic production and establishment of a new warehouse in China, the occupancy rate in China is almost the same as the occupancy rate of other departments of the IKEA group.

Ikea's innovation and acceptance of customer service make the organization one of the most popular retailers. There were few complaints about IKEA's customer service response, but recently the organization is trying to solve all problems quickly and satisfactorily (IKEA, 2009). Ikea's organizational structure is nearly flat, all employees are colleagues. Corporate culture is built not only at the employee level but also at the supplier level. Pay more attention to efficiency and cost reduction without sacrificing quality. The structure of the organization is clear, and there are good communication channels among various departments (IKEA, 2009).