Flying Tiger Copenhagen, operated by Zebra of Denmark, is ready to follow IKEA’s route to become the next Scandinavian retailer to pounce on the Korean market.
Having 410 stores operating in 25 countries, Zebra which offers Scandinavian home goods at an affordable price will soon be selecting a partner to launch stores in Seoul.
Although household items of Flying Tiger Copenhagen are quite cheap and cost between W2,000 and W5,000, their sophisticated designs still see packed stores in Japan.
The present Korean market has seen phenomenal growth in the home goods department, which explains Zebra’s interest there. Market experts opine that the growth can be compared to similar Swedish and Japanese markets when they were in their exponential growth stage.
With a country’s per capita GNI touching $30,000, people are more interested in staying indoors with their families, thus explaining the surge in demand for household goods.
Competition has now become more fierce in the household items market as larger companies too have begun entering the fray. Household items of Swedish giant IKEA account for 50% of its total sales.
In 1997, Daiso Korea, which launched one-price shops at that time, have touched the W1tn mark in terms of last year’s sales. On the other hand, furniture makers such as Hyundai Livart and Hanssem have augmented their household items list in response to IKEA’s challenge.
In 2013, Korea’s single household proportion was 26%, which is expected to touch 34% in 2035. Thus, at present, the market is expected to expand due to the increase in small households (single or two-member households).