The IKEA chain's entry into the Israeli market in September is expected to jolt the furniture and house accessories sector. Beitili general manager Ofer Aitani says that, regardless of IKEA's reputation and customers' anticipation, those who should really be alarmed over its arrival in Israel are DIY chains, such as Home Center, Ace Hardware (Kne U'Vne), and accessories chains such as Cosmos and Meteor Light Center. The reason, according to Aitani, is that designer furniture is a relatively minor operation as far as IKEA is concerned.
Beitili positions itself a designer furniture chain. However, despite these confident statements, Beitili appears to be making considerable efforts to prepare for IKEA's arrival. Aitani said that Beitili invested NIS 10 million in re-designing its outlets to maintain its leader status.
Beitili's 12 outlets have been redesigned in line with the fusion concept imported from US company ABC, replacing the old room-by-room design.
In addition to this, Beitili is launching a new NIS 2.5 million advertising campaign.
The Israeli furniture market is valued at NIS 3 billion a year.
Published by Israel's Business Arena on 24 July, 2000