How can we explain the rise of Jysk, the new Danish Ikea which is setting up everywhere in France?

How can we explain the rise of Jysk, the new Danish Ikea which is setting up everywhere in France?
How can we explain the rise of Jysk, the new Danish Ikea which is setting up everywhere in France?

Jysk is a Danish furniture brand, a competitor to Ikea although different on several points. Established in 74 municipalities in France, it targets small and medium-sized towns. How to explain its success? Decryption.

Did you know Jysk? If you live in a city with more than 100,000 people, probably not. This Danish furniture brand, established in France since 2007, has accelerated its development since 2020, reaching a rate of one opening per month.

The latest: Denain, near Valenciennes. A town with around 20,000 inhabitants. Jysk’s strategy is to establish itself in small and medium-sized towns.

Thus, the brand chose to set up in La Teste de Buch, in Gironde, rather than in Bordeaux, in Saint-Mitre-les-Remparts, in Bouches-du-Rhône, rather than in Marseille, or still in Persan, in Val d’Oise, rather than in Paris. In Ile-de-France, Jysk only has three stores, the other two being in Seine-et-Marne.

Compete with Ikea

Jysk is in the same niche as Ikea: selling furniture and small decorations at affordable prices. It differentiates itself by establishing itself where the Swedish giant is not. Its stores are also much smaller: around 1,250 m² compared to 15,000 m² for Ikea, which today represents 10% of sales of decorative items in France, according to experts from the private research institute Xerfi.

With now 74 stores in France, its success is surprising. The furniture sector is indeed not in great shape. According to figures from the IPEA (Institute for Prospective and Furnishing Studies), in 2023, sales fell by 2.5% in value and 8% in volume. This is also evidenced by the successive liquidations of Habitat, Made, and, a few days ago, Interior’s.

The exception of mass distribution

However, when we look at the figures in detail, we see significant disparities depending on the type of store. Specialists as well as mid- and high-end brands are suffering from the impacts of inflation, the drop in purchasing power and the crisis in the real estate market (with sales in existing properties falling by 22% in 2023).

On the other hand, large-scale furniture distribution, which includes Jysk and Ikea, is doing rather well and is even experiencing positive growth of 1.4%. A success for reasons comparable to the craze for discounters such as Action or Centrakor: the purchasing intentions of the French are rather directed towards small decoration and “furnishing” furniture (sofas, coffee table, rugs, etc.) at low prices. price.

Objects that you can buy, move, and ultimately renew as you wish. This is what we also pejoratively call “fast decor”. This tendency to want to take care of your interior decoration dates back to the Covid era, during which the importance of being comfortable at home was all the greater, but has not dried up since. Conversely, the kitchen and bathroom departments are impacted by the real estate situation.

Online presence and CSR approach

Jysk specializes in garden furniture, which represents 35% of its turnover. Hence the interest in targeting small towns, where consumers are more likely to have housing with access to the outdoors.

The brand also focuses on multi-brands, particularly in the field of bedding, which allows it to diversify its offering, and on online sales. It is one of the ten main players in European online commerce according to Cross Boarder Commerce Europe, which has just published its ranking (obviously Ikea is number 1).

Last winning strategy: a strongly emphasized CSR (corporate social responsibility) approach. A page of its website is dedicated to it, and lists the initiatives taken by the Danish brand in terms of environmental sustainability. However, 86% of French people expect brands to provide solutions to environmental and societal issues, according to a survey by the Kantar institute from October 2023.

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