While the Swedish furniture giant sees its sales leap on the internet, Conforama is sinking deeper into the crisis with store closures and layoffs. Why ? Axel de Tarlé delivers his analysis.
The world moves with Axel de Tarlé. And this morning Ikea laughs, and Conforama cries. The first saw its sales leap by more than 50% on the Internet, while Conforama sinks into the crisis, against a background of call to strike.
And it's the internet that has turned the whole furniture industry upside down. However, Conforama had started very early on the Internet, well before Ikea, who resisted the maximum, privileging his obligatory course in store. Finally Ikea has started the web, and the result is clear: last year Internet sales in France soared by 56%. They now represent more than 10% of the total. While Conforama, he is at the bottom of the hole, with store closures, and dismissal of staff.
What happened ? Why did Ikea succeed where Conforama failed?
Everything is a question of supply. Ikea has an exclusive offer not found elsewhere. We want to buy an Ikea bed while you will never hear anyone say I'm going to buy a Conforama bed. That does not forgive on the Internet. When you have an offer going everywhere, like Conforama, you end up in front-end competition with all the low-cost sites, like Amazon or Cdiscount, that break the prices. While when you are Ikea, with an exclusive offer, you attract the customer. The site Ikea France is 185 million visitors last year. In fact, in this world of ultra-choice, supply, content is king.
And this observation also applies to many other sectors of the economy: look at online video offers type Netflix and Canal +, those who walk are those who have the best exclusive offers, which can not be found elsewhere. This observation is also in the process of establishing itself in mass retailing. To bring back the customer, you need exclusive products. Thus, at Carrefour, I was told to want to put the package on the products of the distributor brand that must become the tool for recovery of the customer.
Because having an original offer is the only way to exist in this world of hyperchoice.