Ikea

IKEA has had to close seven large stores in China. It is the symptom of a much more important trend

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The real estate market was the great economic engine in China, but currently it is plunged into a deep crisis from which it does not seem that it will come out soon. Houses are not sold and, consequently, not as much furniture is sold either. If we add to this an increasingly strong online market and competitors with very aggressive prices, it is not surprising that IKEA is not doing very well. Seven fewer stores. IKEA China has announced which will close seven of its stores on February 2. These are seven large stores, known as ‘blue box’, located in Shanghai, Guangzhou, Tianjin, Nantong, Xuzhou, Ningbo and Zhejiang. After the closure, there will be 34 more operational stores in the country. Change of strategy. IKEA emphasizes that “we will move from large-scale expansion to focused development.” Its strategy is to move away from large stores and focus on local commerce. They plan to open ten small stores in the next two years, starting with the Dongguan store scheduled for next February. This strategy contrasts with the one they are following in other countries like the United Kingdom either USAwhere what they are closing are some small stores opened after the pandemic. Competence. As we said, the Chinese real estate crisis is one of the reasons why sales have fallen, but not the only one. The Swedish giant faces other difficulties, such as the emergence of new local competitors that offer Much lower prices and much faster deliveries. In this context, it makes sense that IKEA wants to focus on small stores and strengthen its online channel. In fact, recently They opened a store on JD.com. Online presence. In statements to South China Morning Posteconomist Fan Xinyu, attributes the closure to “a highly developed online sales market in China, a trend that has reduced the survival margin of physical points of sale.” It is estimated that in 2024 in China They delivered 5,400 packets per secondmaking it the largest online marketplace in the world. In this sense, we can say that in China it is more common to place an order online than to go to a large store such as IKEA. IKEA China. The Swedish company opened its doors in China in 1998 and went on to open 41 large stores. The company has not published financial data, but China continues to be among the ten markets where they sell the most. According to ReutersChina accounts for 3.5% of all IKEA global sales. Image | Wikipedia In Xataka | The founder of Ikea was one of the richest men on the planet, but his most famous trick is available to everyone

‘Ikea ​​hack’ older ASML machines

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When the United States intensified the trade war with China wearing Huawei as a scapegoattriggered a fierce technological advance by the Asian giant. After the veto of Huawei Bans came to the Chinese semiconductor industry, and one hurt more than the others. ASMLleading European manufacturer in advanced machine manufacturing of deep ultraviolet lithography (or UVP), could not sell its best equipment to Chinese companies. Those of extreme ultraviolet or UVE, specifically. These machines are what the different chip manufacturers use to create their products and the industry depends on them. Think of these SVU machines as a gigantic 3D printer: Silicon wafers are their raw material and on them they “print” the circuits necessary for the processors to work. What’s special about ASML machines is that they are able to print those patterns with a precision impossible for any other machine. With the American veto, and with ASML being the only company with the exclusive technology to create this “printing” process, China had a difficult time advancing not only in its consumer chip industry, but in the rampant race of artificial intelligence. However, Chinese companies They are making progress by tricking the machines of ASML that they had obtained before the blockade. With Huawei and SMIC at the helm, they are pushing the machine and achieving the unthinkable with old equipment. The ‘Ikea ​​hack’ of ASML lithography machines One of the concepts that I like the most in interior decoration is the ‘Ikea ​​hack’. It consists of buying a generic Ikea piece of furniture and transform it into one with more personality and even different functions. It is maximizing the potential of a simple and known structure. A 3D printer, but in a brutal way They are doing something similar from SMIC. A couple of years ago it was a company whose name came to the fore almost daily. No wonder: It is the spearhead of the Chinese semiconductor industry and the one that provoked the wrath of US regulators when they realized that they had not finished off Huawei after the veto. Somehow, SMIC had been able to make 7nm and even 5nm chipsa lithograph outside the reach of the machines that China had. He Huawei Mate 60 Pro Kirin 9000S marked the rebirth of the company’s mobile phonesand the surprising thing is that SMIC I had created it with old machines such as the Twinscan NXT:2000i or the Twinscan NXT:1980i. They were UVP machines acquired before the veto. And, although ASML could not sell new material or make updates that improved the base features of those machines, they could provide support. The issue is that these machines were not designed to create integrated circuits as cutting-edge as those manufactured by TSMC, Samsung or Intel, but the ‘Ikea ​​hack’ by SMIC and Huawei to have 7nm chips is the ‘multi-patterning’ technique. In simple terms, this technique involves having the UVP machine make multiple passes at a single point on the silicon wafer to create denser chips. What an EUV machine would do in a jiffyit takes more time and passes to a UVP because the lenses and lasers that “print” the circuits are less precise. “Chinese factories have made impressive progress without full access to the best equipment that others in the sector, such as TSMC or Samsung, have” – Dan Kim, director of strategy at TechInsights As we read in Financial Timesthe TecnInsights analysis group estimates that SMIC has been perfecting the multi-patterning technique beyond the 7 nm process during these years and that Huawei’s Kirin 9030 processor It is the most advanced created by China to date. The achievement is that: they have done it with obsolete machines. Now, despite the trick of SMIC and Huawei, the process has its problems. To start, the obvious: More passes means more manufacturing time than what it would take a more advanced or SVU machine. But also something more serious: the ‘yield’. This concept applies to the percentage of functional chips obtained from a wafer. They are, in short, forcing the machine. And that translates into more time per chip, more probability of a chip being defective and, in total, higher production costs. China’s ‘Manhattan Project’ Now, and as they point out in the Financial Times, although China does not have extreme ultraviolet photolithography machines, they do have some of the latest, most advanced machines from the previous generation of UVP: the 2050i and 2100i. Were sent by ASML before the veto September 2024 will come into effect, and the United States Bureau of Industry and Security he has a fly behind his ear. A silicon wafer One of the arguments to veto the sale of ASML equipment to China is national security. These advanced chips are introduced in consumer technology, but also in military technology. And, according to the FT, the US administration has been investigating what kind of support ASML has provided to Chinese customers, even considering the possibility of tightening maintenance standards for machines that manufacturers already had. In any case, China continues to push this technology. and in Reuters they go further: a group of former ASML engineers who now work in Chinese companies have managed to decipher the secrets of the Dutch company’s most advanced machines through reverse engineering. As if it were the Chinese version of the Manhattan Project With which the United States built its atomic bomb in World War II, Chinese engineers would have used ASML machine parts available in “alternative” markets to develop more advanced technology than what they officially had at their disposal. ASML CEO stated that China would need “many, many years” to develop that technology, but if they have already managed to decipher the secrets of the SVU machines with reverse engineering, the movie changes completely. There are other difficulties, since the lenses used in UVE machines are Extremely accurate and proprietary from Zeisswhich cannot officially sell to Chinese manufacturers either. According to Reuters, the prototype created by these engineers is capable of generating light in the … Read more

The founder of Ikea was one of the richest men on the planet, but his most famous trick is available to everyone

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You may like it more or less Ikeabut I don’t think there are many doubts about the success that the company has had throughout its history. One figure was key in his rise. Its founder, Ingvar Kampradwas a different man of his time. The businessman died with billions of dollars in his account and, however, the key that led him to success and that he strictly followed throughout his life was very simple. Hint: never spend more than necessary. Ingvar Kamprad before Ikea. When you imagine the guy who built the Ikea empire, you may think of someone who lived a dream life that very few can achieve. However, if the company is what it is today, it is partly because Kamprad was the complete opposite of those stereotypes. Despite his wealth, he was known for your most frugal habits. Born in Sweden in 1926, his beginnings as a “businessman” began very early. At the age of five he sold matchesand at ten he dedicated himself to selling bikes, fish or even Christmas decorations to his neighbors. At the age of 17, he created Ikea with the money his father gave him for his good grades. Of course, I didn’t sell furniture then, just small utensils for the house. ELON MUSK VS JEFF BEZOS: STAR WARS Kamprad in 1965 Ikea is getting older. It happened in 1956, when Kamprad revolutionized the market and the furniture industry itself with the introduction of flat boxes with furniture to assemble at home. Yes, this began a way of selling the product that has continued to this day and that reduced the company’s costs in exchange for the consumer doing the other part of the work: assembling the furniture. The founder achieved such success that he became one of the richest men on the planet. In fact, when he died in 2018 he was eighth on the world list and had a estimated net worth of 58 billion of dollars. However, if you had met him in life, you would not have thought that you were dealing with a billionaire. Kamprad’s life hack. Talking about the secret of the success of a company like Ikea in an article is nothing short of an act of faith. Surely it is better understood in a book and in a more relaxed way, but we can understand some keys through the figure of its founder. And Kamprad insisted on one thing: saving, and he carried that maxim every day of his life. “Everything we earn we need as a reserve,” said. For example, the man was known for flying economy class, staying in budget hotels, or drive a Volvo 240 GL of 93 that lasted 20 years. In fact, he only gave it up when he was convinced it was dangerous. Kamprad said that he learned to be prudent with money in the small town in southern Sweden where he grew up: “it is in Smaland’s nature to be thrifty.” Example of this it happened in 2014when he returned to Sweden after 40 years of tax exile with clothes “bought only in flea markets.” The haircut anecdote. In 2008, The guardian told a scene which said a lot about the businessman’s personality. Apparently, after paying around 22 euros for a haircut in the Netherlands, he said the price was too high for his usual budget for haircuts, “I usually try to get a haircut when I’m in a developing country. The last time was in Vietnam,” he went on to say. The philosophy of life, to the company. These habits not only represented the beginning of Kamprad’s personal philosophy towards consumerism, but were also to serve as a model for his employees. He New York Times detailed that low-cost flights, meals and hotel stays were initiatives that he promoted among executives. In fact, in 1976 he distributed what was called “Testament of a furniture dealer“, a booklet with guidelines that Ikea employees have followed since then. In it, he details parts of his frugal philosophy, stating that “wasting resources is a mortal sin at Ikea.” His inheritance, his legacy. Decades before his death, Kamprad had placed ownership of the Ikea brand in a complex network of foundations and holding companies. However, these assets were not transmitted to his heirs. Apparently, the Stichting Ingka Foundation, a Dutch entity whose stated purpose is to donate to charities and “support innovation” in design, controls most of the Ikea stores. Additionally, the Interogo Foundation owns the rights to the brand and controls global franchises through a subsidiary. This foundation is managed by a board in which members of the Kamprad family have minority control. That is, the heirs retained some of the wealth and control, but the majority of their fortune is held in charitable trusts. A complicated structure as a result of his desire to preserve Ikea’s unique culture and ensure its long-term survival. Why Ikea. Before finishing this small collection of stories about the man who founded the most famous furniture company, a secret that many do not know. Why is it called Ikea? It is an acronym of the initials of Kamprad’s first and last name, and the initials of the name of the family farm where he was born (Elmtaryd) and the nearest village (Agunnaryd). Image | Ikea, Haparanda Midnight Ministerial, Public Domain In Xataka | The psychology behind IKEA selling you cheap food in its restaurant In Xataka | Online sales and manufactured in local carpentry shops: Slowdeco, the “Valencian Ikea” that does not even try to compete against Ikea

follow the opposite recipe to IKEA

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The Danish chain JYSK has reached 172 stores in Spain and Portugal after opening 28 new ones last year, already billing 221 million euros. Their plan: reach 300 stores in the coming years. Known as ‘the Danish IKEA’, its big difference compared to the Swedes is that IKEA opens large commercial temples that usually require specific trips as they are in very specific locations, while JYSK multiplies points of sale in medium-sized cities and provincial capitals with smaller stores. Why is it important. JYSK has become IKEA’s great competitor in Spain without trying to imitate it. Its capillarity strategy allows it to cover areas where its rival is not present, capturing impulsive purchases and quick renovations that do not justify a trip to the outskirts of the city. The result: it grows in billing while expanding its network at an accelerated pace. The contrast. IKEA is a planned excursion. JYSK is a casual purchase. The Swedish giant is betting on a few megastores that concentrate thousands of products. The Dane prefers premises of 1,000-1,500 square meters that are more accessible from home. They are opposite models that pursue the same client at different times. Between the lines. The key is in positioning: JYSK sells “hygge“Danish —Nordic comfort—at competitive prices, but without the logistical complexity of IKEA. Reduced catalogue, without exhibition labyrinths. The customer comes in, buys and leaves. The company has 3,500 stores around the world and aims for 5,000. On the peninsula it has invested 12 million euros to create 250 direct jobs. His recent landing in Calatayud (Aragón) is a good reflection of its strategy: it is its fourth store in the community, and it follows a pattern: strategic cities without commercial saturation. The opening in Almenara (Castellón) of a logistics center of 274,000 square meters, with an investment of 300 million, will supply Spain, Portugal and Morocco from 2028. It will be the new headquarters for the Peninsula, with 250 employees and capacity for 182,500 pallets. Yes, but. JYSK is still far from IKEA in turnover: the Swedes earned 1,986 million in Spain last year, almost nine times more. The difference lies in the average ticket: IKEA dominates in large purchases (kitchens, complete bedrooms, etc.) JYSK is strong in partial renovations and add-ons. The question is whether JYSK can maintain this pace without cannibalizing its own stores. Capillarity has a limit: opening too many points in nearby areas reduces profitability. At the moment it works because Spain still has untapped commercial gaps. In Xataka | After DANA, underground parking is under scrutiny in Valencia. And there is already a reference: the “IKEA model” Featured image | JYSK

A Norwegian man wanted a Lamborghini Aventado but he was not a millionaire. So one was made with Ikea parts

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Steinar Thyhold, a 57-year-old Norwegian, he is not a millionaire. However, that has not prevented fulfill your dream of having a “Lamborghini” in his garage. The most striking thing is that he has not achieved it with your life savings. It has achieved this in a much more impressive way: it has built your own Lamborghini Aventador at home and from scratch, recycling some parts from other cars and buying others in places as unexpected as Ikea. There’s nothing like a homemade Lamborghini According to published the Norwegian middle NRKThyhold took seven years to build his homemade supercar and put in more than 7,000 hours of work to create this fully functional replica of the Lamborghini Aventador that he has even driven on the open road. Far from the 400,000 euros that a original aventador At the dealership, the Norwegian “only” spent almost a million Norwegian crowns, which is equivalent to about 97,357 euros at the exchange rate. The whole process began in the garage of his home in Malvik (Norway), where he first manufactured a wooden chassis as a base and then built a tubular steel one. For the engine he chose a BMW block M73, a 5.4-liter, 326-horsepower V12, which he took from a third-generation BMW 750i E38. Choosing this engine was no coincidence. Thyhold wanted to maintain the spirit of the Aventador, which carries a V12 engineand that is why he opted for this second-hand German engine. The search for parts for his supercar forced Thyhold to travel halfway around the world. He bought the engine in Germany, but he also had to look for parts in Bulgaria, Thailand, the US and even Mexico. A “Frankenstein” on wheels As a good home project, the Aventador replica It is built by joining and adapting parts from different manufacturers. The Tiptronic sequential gearbox was taken from a Audi A8the window regulator is from a Volvo V70 and the different moldings of various Volkswagen models. In reality, from Lamborghini, it only has two original parts: the headlights and the windshield. According to published Business Insiderthese were the most expensive pieces of the project. The most curious thing of all is that to build the exhaust system for his homemade Aventador, the ingenious Norwegian turned to an unexpected supplier: Ikea. “The exhaust system was a challenge and, among other things, the pipes had to be covered. To achieve this, I bought a sink at Ikea and another at a second-hand store in Stjørdal. I screwed them together and installed them over all the pipes,” Thyholdt told NRK. Tap on the photo to go to the original message The dimensions of the car almost perfectly replicate those of the original model: it measures 4.8 meters long, 2.36 meters wide and 1.13 meters high. Although it has not revealed the final power, it is known that its BMW engine delivers more than 326 horsepower, since it included an ECU (Engine Control Unit) to improve performance. Despite being a completely homemade replica and artisanalThyhold’s Lamborghini can legally ride on the roads of the country since it complies with Norwegian regulations for amateur built vehicles and has been approved and registered. The authorities of the Public Highway Administration have visited his garage on several occasions to check the work, granting official approval to his project. Thyhold has shared its creation step by step through your Instagram profileto which he has added the description “Do it yourself”. For obvious legal reasons, Thyhold’s supercar couldn’t sport the Fighting Bull badge, so the Norwegian baptized his replica “Stethy”, a name he even silk-screened on the BMW engine. Steinar Thyhold’s work has been so methodical and precise that it has generated admiration among others Lamborghini enthusiasts. Harald Skjøldt, president of Lamborghini Klubb Norge in Norway, and owner of several supercars from Sant’Agata Bolognesepraised Thyhold’s retort. “I am very impressed with the work he has done. The Lamborghini is a very advanced supercar, so it is not an easy task.” The president of the Norwegian club expressed deep respect for Thyhold and his initiative and invited him to participate in the events organized by his club to roll with them as if it were one morealthough in reality he is the only one who can boast of having built his own Lamborghini. In Xataka | Lamborghini will only manufacture 29 units of its latest supercar but don’t be in a hurry: they were already sold before being presented Image | Wikimedia Commons (via.tt.se) Lamborghini

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