Foundry transformation hangs the name of IKEA Jiayi or faces IKEA rights

In the home store, there was a “Li Gui Yi Jia” that was almost exactly the same as IKEA, which made consumers confused. On May 13th, the 6th edition of the newspaper reported that “Lijia “IKEA” in the home store” restored the current situation of this Jiayi beauty store: from the goods to the store layout, almost exactly the same as IKEA.

Behind the "Li Gui Yi Jia", there are still a series of problems hidden. Who opened this "Li Gui IKEA", is this infringement, and how does IKEA view such a store? In the past few days, the reporter found that the "Li Gui Yi Jia" quietly appeared behind the break between the IKEA original factory and IKEA due to profit. In the interview with this reporter yesterday, IKEA made it clear that it will "take action against the violation of IKEA interests."

Question one

Why did the IKEA foundries leave?

"I used to be the first home furnishing store in the world for 16 years." This slogan was written on the website of the "Li Gui IKEA" operator - Taobao Tmall merchant Jia Yimei. It turns out that this “Jiayimei offline experience store”, which imitates IKEA from content to form, is a self-owned brand established by more than a dozen foundry companies that have separated from IKEA.

Since the 1990s, IKEA has cooperated with many foundries in China. As the world's number one home store, its huge demand for goods has also brought a large order to these foundries. So why do multi-year collaborators part ways? The answer given by the foundry is that profits are constantly being compressed.

“Manpower and raw material costs are rising every year, and IKEA’s contract price is declining every year.” Qu Jinchang, chairman of Yichun Huamei Wood Co., Ltd., one of the constituents of Jiayimei and who has worked with IKEA for 11 years, said frankly. In 2009, the production cost of a square table was 175 yuan. At the time of the renminbi exchange rate of 6.8 or so, the dollar was about 25.7 dollars. In the same year, IKEA reduced the contract price from 30.38 dollars to 29.77 dollars. "There is only a price difference of about 3 dollars, and we have to plan the freight, financial expenses, equipment depreciation expenses, and it is completely a loss."

According to a person in charge of a foundry company, 70% of the company's business came from IKEA. However, with the implementation of IKEA's low-price strategy in China and the rising cost of manpower and raw materials, the profits of the foundries began to dilute, not even To 5%.

The sale of a loss is naturally impossible. Since the end of last year, more than a dozen domestic foundries supplying IKEA have stopped supplying IKEA.

Question two

Imitating the IKEA group to open a shop suspected of infringement?

Stopping supply is only the first step in these foundries. They gathered together and hoped to “build” their own brand after leaving the big tree of IKEA.

Jiayimei, which appeared in the Taobao Love Beehive Experience Store in Beijing's Chengwai Home Furnishing Market, is not the first store opened in China. As early as the end of last year, Jiayimei landed on Taobao.com and became an online store under the Tmall platform. At the same time, it opened a physical store in Heilongjiang. According to Jiayimei, after the online store was on the market for about one month, the sales exceeded 2 million yuan. Jiayimei also plans to develop more physical stores in the cities where IKEA has not yet deployed.

But it would not be appropriate to say that this is already the “own brand” of the foundries. As the reporter visited the Jiayimei Experience Store in Beijing, it was found that everything from IKEA to the same product, blue and yellow facade decoration, all-in-one shopping, furniture placement and even the long price tag, there are waves everywhere. The "IKEA element" that does not go.

Even the operators did not rumor about the imitation of IKEA.

"We have all done IKEA for more than ten years, and everyone has a deep understanding of IKEA products. All aspects must be learned from IKEA. We can also say that we are imitating IKEA." Cao Yuewei, Chairman of Heilongjiang Endurance Wood Board, said, hope Such a way of doing business will not cause IKEA's lawsuit. “Ikea has a lot of good things to learn. Since it is a similarity that can't be avoided, I believe that I will have my own style after a while.”

Question three

Does IKEA have intellectual property rights to the products it sells?

The reason why Jiayimei’s approach is controversial is because of its high similarity with IKEA, especially the furniture product itself. In this regard, a person in charge of Jiayimei has made it clear that Jiayimei does not believe that it violated IKEA's intellectual property rights. “IKEA only has intellectual property rights to about 30% of its products.” The person in charge said this, but did not show relevant evidence.

So, does IKEA think that Jiayimei has infringed on its intellectual property rights? If it is violated, how should IKEA plan to respond?

The relevant person in charge of IKEA has previously stated that IKEA has intellectual property rights for all its products sold. However, no question is given to the questioning of "Ikea intends to start safeguarding rights."

Yesterday afternoon, IKEA finally bid farewell to silence, and its Beijing public relations official sent a clear reply to the reporter: Inter IKEA System BV is the owner of the IKEA trademark, the company will be in the existing law Within the framework, IKEA's intellectual property rights are protected in all aspects, and actions are taken against the interests of IKEA.

“In the procurement process, we will upgrade the supply chain once and for all. If we do business, we will choose some suppliers and give up some suppliers. This is a natural elimination process.” IKEA China Purchasing Manager Peter talked about stopping with the foundry I said this when I was working together.

News extension

Foundry transformation: product design must be competitive

The retail giant insisted on taking the low-price strategy and the supplier was eliminated if it could not adapt. This sounds a bit cruel, but it is indeed part of the real state of the Chinese industry.

Since the 1980s, China, especially the southeastern coast, has become a gathering place for foundries. International brands such as watches, bags, and clothing have become the “employers” of these foundries, bringing lucrative profits to these factories. However, to this day, the foundry industry is gradually declining, the cost of manpower and raw materials is rising, profits are being diluted and other factors, and China's manufacturing industry must undergo transformation.

"It is undeniable that in the more than ten years of IKEA's founding, we have learned a lot of good experiences from IKEA." Cao Yuewei said that although the foundry and IKEA have differences, but IKEA's "housekeeping skills" - - Cost control has benefited the foundry.

Hong Tao, a professor at Beijing Technology and Business University, explained that the so-called cost control, that is, to reduce costs by strengthening production management, reducing losses, and increasing the use of raw materials, while still ensuring product quality. In addition, IKEA's “Nordic style, simple and practical” design concept and the business philosophy of “providing a wide variety of products, beautiful and practical, and affordable household items” are all worthy of successful experience. .

“Asies that rely too much on cheap labor and external orders, if they cannot transform and upgrade their core competitiveness, they will inevitably be eliminated.” Hong Tao said that for these domestic foundries, the transformation is first of all to be competitive in product design. Rather than completely "borrowing" IKEA brands and designs. "This kind of practice is to fight the ball, suspected of violating the rules. If the company can't quickly find its own position, but simply imitate it, it will not be too competitive."

The transformation of foundry companies, especially the transformation of production to independent brands, is the way the real economy must go. From the perspective of circulation, each industry has a specialized division of labor. IKEA not only has a price advantage, but also has the ability to combine a rich product line. Whether or not a new brand enterprise has such a competitive strength remains to be tested.

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