Archive for December, 2007

IKEA starts to focus on store, not e-commerce though

Monday, December 17th, 2007

In Sweden, Ikea employees do noticed a change in retail strategy from this global furniture giant. According to a memo, the Swedish company will focus on in-store experience as the only sales channel. Don’t take this wrong, Ikea will not discontinue its e-commerce in United States. According to the memo from Dahlvig dated Dec. 7, the focus on in-store efforts is the result of a decision from Ikea’s board, a decision based on the belief that Ikea “can give customers the best offer and the lowest price by making the range available only through Ikea stores.”  This shift in strategy was mainly due to the high cost of running e-commerce in Sweden. 

Ikea

$35 million get disbursed to US manufacturers

Friday, December 7th, 2007

Under the Byrd Amendment, a couple of US manufacturers received $35.1 millions duties collected on Chinese wood bedroom furniture by US Customs and Border Protection. This represent a 61% increase from last year’s 21.8 million disbursement. Among all the manufacturers, Stanley Furniture received the largest payout amounting to $8.9 million. Companies that were not original petitioners that are seeking duties this year include Ashley, Furniture Brands International, HM Operating Inc., Kimball, Thornwood, Witmer Inds. and Standard.

However, in my opinion, this is not a way for US manufacturers to compete with foreign competition, duties can not be collected and distributed year after year and the amount definitely can not be guaranteed. Outsourcing probably be a better way for the long-term strategy if US manufactures want to stay competitive in this market.

A detailed report can be viewed at: http://www.furnituretoday.com/article/CA6510652.html