The 'Ikea Index'

I call it the Ikea index, named after the Swedish home furnishings retailer that claims to be the world’s largest furniture company.

When my family first moved to Beijing in September 2003, we made several trips to the local Ikea store to buy lamps and bedding. We were astonished by what we saw. The store was packed but nobody was buying. They were too busy lounging!

In the furniture section, every single chair was taken. Shoppers weren’t trying them out, mind you, but resting. In the mattresses section, shoppers were sprawled all over the beds. My wife swears she saw one couple playing cards on a bed, looking like they had found the most comfortable place in Beijing to spend the afternoon.

We quickly realized that a) the store was air conditioned and offered a respite from the outdoor heat, and b) no employees were there trying to shoo away people camped inside.

I’ve been to Ikea a couple of times since then, including this weekend, and it’s been a gradual but major evolution. First off, Ikea opened its second biggest store in the world in Beijing 10 months ago and shut down an older store. The new store’s got three underground levels of parking and is enormous.

Like in previous years, the store is generally packed. We couldn’t even get in the underground lot. The biggest change, though, is that Chinese consumers are buying. The huge Ikea restaurant was packed, and at the checkout lines consumers pushing carts piled with products waited patiently.

I can only presume the change is because Chinese consumers are noticeably better off than in 2003. More people have moved into new apartments and need them furnished. Fewer people live cramped together, and need to escape to Ikea to stretch out and enjoy the AC.

I noticed something else: Employees in various sections stood with microphones near portable amplifiers shouting out the benefits of certain products. I bet this doesn’t happen in other countries. Ikea is putting some “Chinese characteristics” into its China strategy.