In our previous article, Global Brands That Failed in Japan, we explored how companies like Walmart, Tesco, and eBay struggled to adapt to the Japan market.

But not every global brand that fails here stays down. Some manage to learn from their mistakes, localise their strategy, and eventually succeed.

One of the best examples is IKEA Japan.

The Swedish retailer entered the Japan market in the 1970s, failed, withdrew, and then returned decades later with a new localisation strategy that transformed it into a success story. IKEA’s journey highlights how global brands must adapt their marketing, content, and customer experience when entering Japan.

IKEA’s First Attempt in Japan (1974 ~ 1986)

IKEA first entered Japan in 1974 through a franchise agreement. The company introduced its flat-pack, self-assembly furniture model, which had already proven successful in other global markets.

Why IKEA Japan failed the first time:

• Mismatch with Japanese homes: Large Western-style furniture did not fit into small Japanese apartments.
• Unfamiliar concept: Self-assembly was unusual in Japan, where consumers preferred ready-made, long-lasting products.
• Weak localisation: Products, marketing, and content were not adapted to Japanese culture, lifestyles, or consumer expectations.

By 1986, IKEA Japan withdrew after years of poor sales and limited consumer interest.

IKEA’s Return and Localisation Strategy

In 2006, IKEA re-entered the Japan market, this time with a localisation-focused approach that reshaped its brand image and value proposition.

What changed with IKEA Japan’s strategy:

• Localized products: Compact furniture, modular storage, and space-saving designs created specifically for Japanese homes.
• Experiential marketing content: Large showrooms, children’s play areas, and Swedish cafés turned shopping into a family experience.
• Affordable style: IKEA positioned itself as both fashionable and budget-friendly, appealing to younger Japanese consumers.
• Urban adaptation: IKEA later opened smaller city-center stores and expanded e-commerce with delivery options, making shopping more accessible.

This localisation strategy allowed IKEA Japan to align with modern lifestyles and consumer expectations in a competitive market.

IKEA Japan Today

Today, IKEA is widely recognized as a foreign brand that succeeded in the Japan market.

It operates multiple stores across the country, runs localized marketing campaigns, and delivers content that resonates with Japanese consumers. The IKEA brand in Japan is now strongly linked with affordable style, clever storage, and a family-friendly shopping experience.

Insights for Business Leaders and Global Brands

Unlike other global brands that failed in the Japan market, IKEA Japan transformed its initial failure into long-term success. By investing in localisation, tailoring marketing content to Japanese consumers, and adapting its business model, IKEA built a sustainable and trusted presence.

IKEA’s story demonstrates that in Japan, failure is not final. With patience, market adaptation, and the right localisation strategy, global brands can turn setbacks into growth opportunities.

About the Author
Ivan Vandermerwe is the CEO of SAECULII YK, owner of the Japan based Marketing Content Creation Agency in Tokyo Visit SAECULII for the latest professional case studies, articles and news on Japanese Marketing Content

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