IKEA and Alibaba: a collaboration and a virtual store

In February 2019, we shared with you our article Retailers are turning to urban concepts. Indeed, we analyzed together the strategy of some retail brands, which to get closer to their customers, were relocating to city centers. For the past year, we have been closely following the evolution of these urban concepts. Let's go back to the issue of range extension in city centers. Finally, we will discuss the launch of this virtual store between the Swedish company and the Chinese platform: IKEA and Alibaba.

How to manage the range extension issue?

Let's compare a shopping center in the suburbs to a store in the city center. With a surface area one-tenth the size, retailers are faced with the problem of extending their range. How to avoid frustration in smaller spaces? One of the answers to these questions lies in the virtualization of ranges. And IKEA is ahead of the game in every way. In fact, while Ikea's expertise in 3D is recognized worldwide, it is important to emphasize that this technology is not just a gadget. 3D is widely used in furniture design, in catalog publication and in customer journey simulation. At the point of sale, interactive terminals are also available to access elements that are not present at the point of sale. This usage allows to offer to the customers a direct access to the product sheets.

The collaboration between IKEA and Alibaba to (re)conquer the Chinese market

2.5 billion. That's the number of visits to the IKEA website. And many a retailer would like to achieve such a score. However, the share of e-commerce activity is still limited. By signing a partnership with Alibaba, Ikea has confirmed its strategy. The aim is to increase the number of local sales out lets and guarantee access to its products via the web. For the moment, this collaboration is limited to a test in several Chinese regions. The range is also initially limited. With the recent covid-19 crisis, there's no doubt that the results will be commensurate with the trial's success. It should also be remembered that in China, the Tencent, Alibaba and JD.Com platforms have become indispensable. These digital media host all kinds of content and services: news, trends, chat, games, shopping. And even payment methods!

Want to know more?

Do you have questions about virtualization or extending your product ranges? We'd be delighted to discuss these issues with you. Let's get in touch! Want to know more about virtual reality? Download the free white paper "The contribution of 3D in retail".