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NEWS: More on IKEA's Stockholm Collection

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Growing Up. Following our recent post on IKEA's Stockholm Collection, The Washington Post follows up and prints a brief explanation of the higher-than-usual prices:

"Market surveys said some of our customers felt they had perhaps outgrown some of the Ikea products," says Peter Klinkert, Stockholm's project manager. "We wanted to still be cost-conscious but offer another layer of products with great design and additional features."...

 
 

This is a strategy that has been growing in popularity. Well-known brands spinning off in new price points to retain old customers and attract new ones — Williams-Sonoma, Inc.(Pottery Barn, West Elm) recently went after a more affluent customer with the launch of,Williams-Sonoma Home.

Via Racked and Unbiege.

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Comments (4)

I guess the question is whether the construction is any better. I'd rather pay $75 for a cheap but chic Ikea piece of furniture that will fall apart in two years than $750 for a slightly nicer piece that will fall apart in five.

posted by betsbillabong on June 4th 2007 at 3:34pm
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Exactly! And the Stockholm series doesn't really seem to scream "grownup" in either aesthetics or construction quality. At least their 365 series of housewares achieved a more upscale design look -- better glazes and QC to match their sometimes more interesting forms.

posted by Alan on June 4th 2007 at 6:44pm
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I found that chair extremely uncomfortable. For $400 I'd expect something a little nicer.

posted by SPHH on June 5th 2007 at 5:04am
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Williams Sonoma Home had the advantages that (a) potential buyers already associated the W-S brand with "quality" at a higher price, due to the housewares store; (b) the new price point was segregated into its own brand and stores; and (c) where WSH isn't pure catalog, the new stores are sited to attract walk-in from their target market. They didn't just drop WSH items into existing Pottery Barns or add a Pottery Barn Supreme line in hope that PB customers might be in the mood to spend a little more. WSH also sells a specific lifestyle.

IKEA's Stockholm line... I dunno... what they've done is move in on a price point where there are tons of competitors selling furniture at least as good. If you want to spend about $2000 on a leather sofa, there are plenty of ways to do it. IKEA's competitive advantage was that they provided an affordable answer to situations where there wasn't another way to solve the problem at a similar price.

posted by wende in the twin cities on June 5th 2007 at 6:03am
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