英语论文网

ral tastes, norms and preferences. At the same time, compared to manufacturing firms, retailers experience high levels of consumer contact. In other words, foreign enterprises with a local furniture market focus should call for a high level of local adaptation. They should pay more attention to the local furniture market conditions and become more prepared for the changes in the local market. Furthermore, because of the high competition in the domestic market, foreign enterprises need to establish the necessary business network in China. At the same time, products and services of foreign enterprises should much ahead of domestic competition. As millions of Chinese people have joined the ranks of the middle class, they are willing to invest more and more money in their apartment in furnishing and decoration. Meanwhile, Chinese consumers call for well designed and high quality furniture brands. The furniture industry is very competitive between foreign brands such as Ikea, B&Q, and local brands like Homes Orient. How to choose the style of products is one of the key questions for foreign brands. The magazine <<Furniture and Decoration>> provided some information about Chinese consumers’ expectations of furniture needs in 2003. “About 80%of interviewees considered furniture design should be a functional emphasis based on people’s needs. 44%of them would prefer buying assembled furniture which can be moved easily from one place to the other. The price is not the only important factor. (It is related to the power purchase), about 52%of interviewees hope the price can be lower, 48%of them ignore the price, and they pay more attention to the furniture’s function and design style. Environmental concept influences the consumers’ behaviour too, 60%of interviewees required the furniture should be made of clear material that is no poison and no damage for healthy, only 6%of them considered this environment factor not important. Wooden furniture is the most popular in the consumer’s mind. 42%of interviewees prefer wood furniture, 38%of them like furniture made of glass, leather and fabric, other material accounted for 20%.36%of interviewees normally change their furniture every 10 or 15 years, only 5%of them want to keep their furniture for 30 years.”( Yihong Li,2007) In all, China’s furniture industry is at the early stage of its growth and has great potential despite the problem of instability in industrial structure. case study –IKEA:One successful example of FDI in China The IKEA saga The IKEA Philosophy Ikea was established in 1943 by Ingvar Kamprad in order to sell pens, wallets and picture frame. In 1958, Ikea was introduced as a leader of Swedish Furniture Company. They started from producing local furniture by local manufacturers and gained positive attention from customers. Later, they began to create furniture for flat packs and self-assembly in order to reduce storage space which is the prominent style of Ikea. They are also expanding the business line such as restaurant and kitchenware. Ikea, the largest furniture display in Scandinavia, opened the first store in Almhult and Sweden. Then they opened more stores in other countries such as Norway, Denmark and Germany. They do not only offer inspiring home furnishing solutions to customers while keep the prices affordable for people but also locate in le