IKEA Japan announced that it will reduce the prices of over 800 popular products starting August 24th. At a press conference held on the same day, Helen von Reiss, president and CEO of IKEA Japan, spoke about the company's business developments for fiscal year 2018, revealing that key initiatives include "large-scale price reductions" and "collaboration collections with famous designers." Approximately 600 of the products will be offered at "NEW LOWER PRICE," with over 800 items being sold at an average discount of 22% over the course of the year. For example, the popular two-seater sofa "Sevik" will be reduced from ¥39,900 (tax included) to ¥29,900, and the colorful "Rixhult" cabinet will be reduced from ¥4,499 to ¥3,999. In addition to furniture, price cuts are also being implemented for miscellaneous goods and food products. The microwave- and dishwasher-safe French plate "Offast" will drop from ¥89 to ¥69, and the "Salmon Fillet" sourced from an Aquaculture Stewardship Council (ASC)-certified farm will drop from ¥750 to ¥650. The reason for this massive price reduction of approximately 800 items is that popular items can be mass-produced, streamlining manufacturing and transportation costs. Helen emphasized that IKEA's products are not only impactful in terms of price, but also in design, creating newsworthy "surprises." Starting in October, IKEA will begin selling the "Ippelrig" collection, a collaboration with the popular Danish design company HAY. The wide-ranging lineup includes an armchair (¥7,999), an LED floor lamp (¥6,999), and a ceramic vase (¥2,999). Other collaborations planned include British designer Tom Dixon and Bea Akerlund, costume designer for Lady Gaga and Beyoncé.
IKEA Japan has set a goal of opening 14 stores in Japan by 2020, and will open IKEA Nagakute (Nagakute City, Aichi Prefecture) in October 2018. Furthermore, the company plans to implement new initiatives to strengthen purchasing from its online store, such as enhancing its digital catalogue, releasing an app, and providing a service that allows customers to simulate how furniture would look in their own home.
