Should IKEA Expand into Brazil: A Study of Brazilian Consumer Behaviours

Authors

  • Hiroshi Ito Nagoya University of Commerce and Business
  • Nada Alelweet
  • Rebecca Harrison
  • Alice Mitchell
  • Ellis Parker

Abstract

IKEA, a Swedish furniture company, is considering entering the Brazilian market. This paper examines whether or not IKEA might be successful in the Brazilian market by reviewing the following issues: the growth of middle class, consumer spending, internet usage and eco-awareness. This study finds that the growing middle class in the country and the increasing average household disposable income is a promising sign that the ability of consumers to afford IKEA products is increasing. The growing online presence of Brazilian consumers is also a positive aspect of IKEA's potential move into the market as it would enable consumers to browse and purchase product via the internet in accordance with current company practices.  Brazilian consumers are currently involved in a trend that favours eco-friendly companies such as IKEA. The paper concludes that IKEA would be received favourably among customers within the market. 

Keywords: Strategic marketing; Emerging market; Furniture industry

JEL Classifications: J; M

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Author Biography

Hiroshi Ito, Nagoya University of Commerce and Business

Dr. Hiroshi Ito is an Associate Professor in Management at the Nagoya University of Commerce and Business (NUCB). Before coming to NUCB, he had worked as an education expert for UNESCO's Education for All Global Partnerships Team in Paris, France. He also worked for UNICEF (Manila, the Philippines), JICA (Quito, Ecuador & Caaguazu, Paraguay), an educational NGO (Santa Rosa, Guatemala), and an educational service company (New Jersey, USA). His research interests lie in Nonprofit Management and Marketing, International Development, Education for All, First-Year Experience, Sustainable Ecology, Language Policy, and Monitoring & Evaluation.

 Dr. Ito received his M.A. in International Educational Development from Teachers College, Columbia University and his Ph. D. in International and Comparative Education from University of California, Los Angeles (UCLA) as well as MBA from Université Paris I Panthéon-Sorbonne.

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Published

2014-11-24

How to Cite

Ito, H., Alelweet, N., Harrison, R., Mitchell, A., & Parker, E. (2014). Should IKEA Expand into Brazil: A Study of Brazilian Consumer Behaviours. International Journal of Economics and Financial Issues, 5(1), 69–74. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/979

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