IKEA is a Sweden furniture retailer. It was founded by Ingvar Kamprad in 1943. Starting small, as a local business, IKEA now has 364 stores scattered in 46 countries around the world. It is by far the most and, probably, the only successful furniture retailer ever. So how does it gained success?
Not by accident, IKEA success is a well-planned one?
Kamprad was one of the cleverest entrepreneurs. He started off with small local market in suburb Sweden. Then in less than fifty years, he didn’t only conquer his nation, but also the world. The meticulous preparation for global market and the undying patience play a big part in the scheme.
Meticulous preparation for global market
It seems like the initial goal of IKEA’s management had never been the national market. It’s always been the global one. They knew from the start that they were entering the global market. That’s why the preparation was thorough. Unlike other retailing companies that enter the global market as an afterthought their local success.
IKEA did an impressive job of matching the target country’s taste. They mix just a perfect amount of local tradition, the Sweden tradition, and modern things. The original designs are neutral yet very aesthetic. And aesthetic is accepted everywhere. But then they did some adjustment in that.
For example, they open arranging service in countries not used to the do-it-yourself concept. Not only that the choice of colors, but size and practicality of the furniture are also different in some countries.
Cleverly, Sweden things are both obvious but discreet. The logo is very Sweden, with the color Sweden flag. The DIY thing is also a Sweden thing, based on a hero’s journey on Sweden tales. And the names of the furniture are in Sweden. Sweden language is used to avoid misconception caused by awkward translating.
Undying patience
Patience is an essential thing unthinkable for most entrepreneurs. But IKEA has it. They are very patient in entering the global market. IKEA is willing to postpone an international branch if there’s any problem. Meanwhile, other retail might just open first and think about problem-solving later.
IKEA also did a clever thing in the production process. Being the third biggest wood consumer in the world, they maintain their source well. IKEA holdings purchased a thousand acres of forest around the world. They also use local manufacturers to produce furniture. It minimized the shipping fees of furniture that can be very expensive. With that, the price of their products can be kept low.
