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Uddrag
BoConcept is a company that sells furniture, the company have Danish roots, but have over the past years developed a lot and internationalized globally and has become the world’s most global furniture retailer, with 285 stores in 65 different countries
which is quite impressive, and they are planning on being even more ambitious, seeking 600 stores in 2022.
Their primary segment is based upon “The Post IKEA Generation” meaning the customers that started with less money and bought from IKEA and then started making more money and wanted to do more with their design and then started buying BoConcept furniture.
The company believes in great quality and brand image, without these them could not succeed, therefore they cooperate a lot with partners such as Japanese, American, and other international designers to keep they products at a high value and quality.
It can also be seen how Europe, The Middle East and Africa have the biggest segment of turnover by geographical region with 58%
while Asia and Oceania have 29.3% and the company makes it obvious that they will expand more in Asia and already have done a lot since this market has so much customer potential and growth potential.
While it may seem like BoConcept is a premium price range, they can provide great quality furniture in the medium price range, while companies like Fritz Hansen sell some of their products to almost 3 times as much as BoConcept.
This method is called value-based pricing since it is the price that the consumers are willing to pay, because they know the quality behind it, the customers are aware of the brand image that drives the price a little higher and since they preference a certain level of quality, they are likely to pay the price.
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When internationalizing to the Japanese market one of the most important factors are how the approaching of the customers on the market are being performed.
Even though Japan’s disposable income per capita has decreased over the past few years, the quality still ranks higher for the customers despite the increased price-focus in the decision making of the purchasing process
therefore it is important for the company of BoConcept that they keep their brand image and brand quality high as always and do not lack on details, since other competitors will be chosen.
If the right advertisement for the Danish culture-based furniture is made, the Japanese consumers will be aware of the quality and do not rank the medium-high prices higher in the decision making.
Another key condition that is important for the success of internationalization on the Japanese market are all about the business etiquette, for BoConcept to obtain even more market share on the Japanese market it would be essential to cooperate through the Business-To-Business format
finding the right partners that can find the geographical markets in the big cities where the biggest growth potential is as well as introducing the concept the right way and advertising the luxury culture based designs.
BoConcept still do not have as many stores in Asia as they have in Europe and with so many more urban areas and major population there are a lot of opportunities to gain from.
Looking isolated on Tokyo that has 37.3 million population and Copenhagen that only has 1.3 million in visually shows how much more can be done in the Asia region. Therefore, what they need to do is educate personnel and the communication staff about the right etiquettes.
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