A Truth About Our Price Setting

 

Is it Really Expensive?

This is the most expensive chair (the one in the above image) among our lineup. With the same amount of money, you may buy full sets of living and dining furniture at IKEA, for example.

 

 

Results Made Through All-out Cost Reduction Efforts

Market prices are naturally fixed by the supply and demand balance. As the supply is likely to exceed the demand by technological development nowadays, price setting becomes more market-oriented, while ours is still product-oriented. I didn’t mean we have power to make a decision on price. For us, a furniture manufacturer, it’s beyond capacity to correctly forecast demand trends. What we can do is just sweating blood to make prices as low as possible, through the accumulation of small improvement.

 

Bittersweet Regional Disparity

As the above chart shows, the average annual income is lower in Hokkaido where our headquarters and factory are located. In other words, made-in-Hokkaido products, including the most expensive chair above-mentioned, are more value for money (because of the lower labor costs), though I’d rather have mixed feelings than being proud of it as a worker in Hokkaido.

Shungo Ijima

He is travelling around the world. His passion is to explain Japan to the world, from the unique viewpoint accumulated through his career: overseas posting, MBA holder, former official of the Ministry of Finance.