Source: Radio New Zealand
IKEA has released details of some of the prices it will charge in New Zealand. RNZ / Marika Khabazi
IKEA has released details of some of the prices it will charge in New Zealand – but how much of a threat will it be to other local homeware retailers?
It says it will sell a watering can for $4.99, a two-door cabinet for $179, a side table for $59.99, a storage bench for $119 and a vase for $19.99.
A yellow table lamp will sell for $229 and a blue dining chair for $119. Children’s stools will sell for $19.99 and an armchair for $199.
“I think Kiwis will for sure love the IKEA experience, the different experience that we are offering when it comes to the home furnishing market,” said IKEA Sylvia Park marketing manager Johanna Cederlof.
“IKEA is not just selling furniture and home furnishing accessories. It is a true experience itself and you get an entire atmosphere and inspiration for your home and that’s maybe what Kiwis have been missing a bit here in New Zealand.”
She said it would be interesting to see whether New Zealanders also favoured the products that were big sellers internationally. She said bed linen was likely to sell well.
A pine table with storage will sell for $449. Ikea
Retail consultant Chris Wilkinson said IKEA would ultimately benefit all New Zealand retailers.
“It will spark inspiration and some spending. Once upon a time people would buy most of their products within a category from one brand – that goes for homeware, clothing and other products – but today are much more likely to mix and blend products and price points – like having an expensive pair of designer jeans, then teaming that with a tee from Glassons.
“Same with the likes of furniture, so signature pieces – teamed with more affordable pieces. The difference though with IKEA is that typically our lower-cost homeware has not necessarily had the sustainability or durability before, so their entry into the market will add an additional dimension.”
He said most of IKEA’s early trade would come from growing the market. “But it will seriously challenge the less durable and short lifespan furnishing and homeware products.
“That would include some big-box stores as well as the plethora of direct-to-consumer wholesalers that bring in products typically from China.”
Bodo Lang, a marketing expert at Massey University said it would be a major threat to many furniture and home furnishing shops.
“IKEA’s impact will be particularly felt by retailers that are close to its Auckland store in Sylvia Park. Even consumers from further afield, say, Whangārei, Hamilton, or Tauranga will make the trip to IKEA due to the brand’s pulling power. Therefore, retailers in those areas may also see a slight sag in sales.
“Beyond that, even retailers in other parts of the country are likely to feel a slowing of sales because consumers can also shop at IKEA online, through the phone, or via the app. However, this impact is likely to be muted because furniture and home furnishings are ‘high touch’ products that consumers wish to try out in person.”
But he said it would bring people to the Sylvia Park area.
“Other retailers, particularly those who are not directly competing with IKEA, will benefit from the arrival of the global retail giant through increased foot traffic at Sylvia Park.”
IKEA will open at Sylvia Park on 4 December, with online sales to the rest of the country.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
