A marketing professor suggests that traditional Finnish furniture chains, such as Asko and Sotka, need to differentiate themselves beyond pricing as they struggle competitively.
In recent news, Asko and Sotka, two traditional Finnish furniture chains owned by Indoor Group and its subsidiary Insofa, are reportedly heading into bankruptcy due to longstanding financial difficulties with no apparent solutions. Marketing professor Johanna Frösén from Aalto University emphasized that the Finnish furniture market has a clear division: a price-sensitive segment dominated by Ikea, and a high-end market offering premium products.
Frösén identifies Asko and Sotka, along with other similar chains like Isku and Masku, as being somewhat caught in the middle. They do not significantly distinguish themselves from each other, which leaves them vulnerable to competition. The professor argues that these stores need to improve their market position by offering something unique beyond just competitive pricing. She states that while the reasons for bankruptcy can be multifaceted, a brand's identity and ability to attract customers with distinct offerings are crucial.
As the furniture retail landscape evolves, this case signifies an urgent call for traditional brands to rethink their strategies. Asko and Sotka, like many established companies, must innovate to capture customer interest and loyalty in a market increasingly influenced by the likes of Ikea. Addressing brand uniqueness and consumer perceptions will be essential for survival in a challenging economic environment where price alone cannot sustain a business long-term.
