Why (almost) everybody loves IKEA? A tale of achievement and creativity!

What's in the name IKEA?

IKEA is named after the initials of founder Ingvar Kamprad, Elmtaryd, the farm on which he grew up, and Agunnaryd, the nearby village.

IKEA was first registered as a trading company on the 28th of July, 1943 when Ingvar was just 17 years old. In his early years as an entrepreneur, Ingvar imported things like pens, watches, and nylon stockings; adding furniture to the range in 1948. A business model gradually took shape when Ingvar realized there was a major, interesting opportunity between the customer and the manufacturer.

What came before the blue and yellow Logo?

The two colors that come to mind when most people think of IKEA haven't always been a part of IKEA's visual identity. The IKEA logo, in particular, has seen many colors, shapes, and forms come and go over the company's eight-decade history.

The IKEA we recognize today started as early as 1948. By now Ingvar was selling furniture by mail order, so the word ‘M?belfirman’ (furniture company) was added to the logo. Like the range, the logo varied for a few years, but the components were roughly the same.

Between 1948 and 1952, ikéa-nytt was published, an ordering catalog and the predecessor to what would later become the annual IKEA catalog. The logo remained unchanged during these four years, in italics and lowercase.

What's in Ingvar Kamprad?

Ingvar Kamprad was born in 1926 on a farm in rural Sweden. He started his first business when he was just five years old. Young Ingvar bought matchbooks in bulk and sold them individually.

By the time he was 10, he was selling pens, pencils, seeds for flowers, and Christmas tree decorations. Kamprad was dyslexic, but he didn’t let that hold him back.

He worked hard and did well in his studies. His dad inspired him by paying him cash for doing well in school and Kamprad used that money to start IKEA in 1943 at his uncle Ernst's kitchen table. He was 17 years old. In 1948, Kamprad diversified his portfolio, adding furniture. His business was mostly mail order.

Kamprad launched the iconic IKEA catalog in 1951. The prices were so low that people were skeptical about the quality of the furniture, so Kamprad rented an old workshop into a showroom to display his furniture. A few years later, Kamprad solved the problem of the expense of shipping large furniture when he took the legs of a coffee table so it could be packed flat. From that point on, as many products as possible were packed in this manner. It saved customers and IKEA money to pack items this way.

By 1955,?Kamprad's manufacturers began boycotting IKEA due to its low prices. Kamprad solved this by bringing production and design in-house. His concept was complete. He designed, produced, showcased, flat-packed, and sold his furniture all in-house. Kamprad believed that everyone should be able to afford stylish, modern furniture. That is the driving idea behind IKEA.?

The first stores outside of Sweden were opened in Norway in 1963 and Denmark in 1969. From there, it was only a matter of time before IKEA conquered Europe. A few short years later its first store outside of Scandinavia opened, and over the next decade, IKEAs were popping up worldwide in countries like Japan, Australia, and Canada, where crowds lined up for grand openings. Germany is IKEA’s biggest market with 53 stores, followed by the US with 51. Today there are 433 IKEA stores in 38 countries.?

Kamprad never borrowed money. He kept IKEA private. Until he died in 2018 at the age of 91, Kamprad continued to traverse the globe visiting new IKEA stores—he did so frugally, despite his great wealth.

The company he created is still known for the attention it gives to cost control, operational details, and continuous product development; allowing it to lower its prices by an average of 2–3% over the decade to 2010 while continuing its global expansion. Kamprad explains his social philosophy in his Testament of a Furniture Dealer.

How IKEA come to be loved by everyone?

IKEA become beloved by many for several reasons:

Innovative and Affordable Furniture

IKEA is known for its innovative and affordable furniture designs. The company offers a wide range of products that cater to various needs and styles, making it accessible to a broad customer base. The affordability of IKEA's products has made it a popular choice for many households.

User-Friendly Design

IKEA's furniture is designed to be easy to assemble and use. The company's focus on simplicity and functionality has made its products popular among consumers who appreciate the convenience and practicality of its designs.

Environmental Consciousness

IKEA has been committed to sustainability and environmental consciousness. The company has implemented various eco-friendly practices, such as using recycled materials, reducing waste, and promoting energy-efficient products. This commitment has earned it a reputation for being a responsible and eco-friendly brand.

Global Reach and Accessibility

IKEA has a global presence with stores in over 50 countries. This widespread availability has made it easy for people to access and purchase IKEA products, regardless of their location. The company's international expansion has also helped it to adapt to local tastes and preferences, making its products more appealing to diverse customer groups.

Community and Social Impact

IKEA has been involved in various community initiatives and social projects, such as supporting education, healthcare, and disaster relief efforts. These activities have helped to build a positive image for the company and foster a sense of social responsibility among its customers.

Customer Experience

IKEA offers a unique shopping experience with its showroom-style stores, where customers can see and touch products before purchasing. This hands-on approach has helped to create an engaging and interactive shopping experience, making customers feel more connected to the brand.

Brand Identity and Marketing

IKEA has a strong brand identity, often associated with its iconic blue and yellow color scheme. The company's marketing campaigns, which often feature humorous and relatable ads, have helped to build a strong emotional connection with its customers. The brand's playful and down-to-earth personality has made it endearing to many.

The role of sustainability in IKEA's business model

Sustainability plays a significant role in IKEA's business model. Here are some key ways IKEA incorporates sustainability:

Sustainable Materials

IKEA is committed to using renewable, recycled, and recyclable materials in its products. For example, the company uses materials like bamboo, cork, and recycled polyester to reduce its environmental impact.

Renewable Energy

IKEA has invested heavily in renewable energy, aiming to produce as much renewable energy as the total energy the company consumes by 2020. The company has installed solar panels on many of its stores and has invested in wind farms.

Waste Reduction

IKEA works to reduce waste in its operations. The company designs its products to minimize packaging and uses recycled materials where possible. IKEA also has take-back programs for used furniture and offers repair services to extend the life of its products.

Sustainable Forestry

IKEA sources its wood from responsibly managed forests certified by the Forest Stewardship Council (FSC). The company aims to use only recycled or FSC-certified wood by 2020.

Sustainable Living

IKEA promotes sustainable living through its products and communications. The company offers energy-efficient lighting, water-saving faucets, and products made from sustainable materials. IKEA also provides tips and inspiration for living a more sustainable lifestyle.

Sustainability Strategy

Sustainability is a core part of IKEA's business strategy. The company has set ambitious goals to become climate-positive, use only renewable and recycled materials, and inspire and enable millions of people to live a more sustainable life by 2030.

The bad critique of IKEA's business practices

People have criticized IKEA's business practices for several negative aspects:

1. Environmental Impact: IKEA has faced criticism for its environmental impact, particularly in the production and disposal of its products. The company has been accused of using unsustainable materials and not doing enough to reduce waste and pollution.
2. Sustainability Claims: IKEA has been criticized for making exaggerated claims about the sustainability of its products. While the company has made efforts to use more eco-friendly materials and reduce waste, some consumers feel that these claims are not fully supported by the company's actions.
3. Consumer Exploitation: IKEA has been accused of exploiting consumers through aggressive marketing and sales tactics. The company has been criticized for using misleading advertisements and promotions to sell products that may not meet consumer expectations.
4. Social and Economic Inequality: Consumerism, which IKEA is a part of, has been criticized for contributing to social and economic inequality. When people focus on buying and consuming more, it can lead to a situation where some individuals and communities have access to a much higher standard of living than others, creating feelings of resentment and dissatisfaction.
5. Mental Health and Well-being: Consumerism has been linked to negative effects on mental health and well-being. IKEA's focus on promoting consumption can lead to feelings of inadequacy and dissatisfaction, contributing to increased stress and anxiety.
6. Lack of Transparency: IKEA has been criticized for not being transparent about its business practices, particularly regarding the sourcing and production of its products. Some consumers feel that the company does not provide enough information about its supply chain and environmental impact.

However, despite this criticism, IKEA has continued to move forward with opening stores in new markets all around the globe, setting examples of affordable and modern furniture at reasonable prices and showing how affordability and sustainability can be factored into a successful business model.

Sam Larios | Author