IKEA presentation (2024)

FAQs

What is the IKEA concept? ›

For the many people

The IKEA Concept starts with the idea of providing a range of home furnishing products that are affordable to the many people, not just the few. It is achieved by combining function, quality, design and value - always with sustainability in mind.

IKEA's target audience is as diverse as its product range, but there's a particular focus on younger, middle-class shoppers seeking budget-friendly, stylish home furnishings. IKEA is well aware of the eco-consciousness of this demographic.

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

Ingvar Kamprad founded IKEA in 1943 at the age of 17, selling goods like pens and wallets. Småland, his home county in Sweden, was heavily forested with stony soil. Resourceful people who were expert at making the most of a little is a quality that has always been at the heart of IKEA.

We strive to create products and solutions that meet all five dimensions of design, form, function, low price, sustainability and quality. We call this Democratic Design. Why? because everyone has the right to a better, and brighter, everyday life.

The IKEA effect, named after everyone's favorite Swedish furniture giant, describes how people tend to value an object more if they make (or assemble) it themselves. More broadly, the IKEA effect speaks to how we tend to like things more if we've expended effort to create them.

1. Billy bookcase. The Billy bookcase has cemented itself firmly as one of the most popular products in the IKEA family. It is estimated that every five seconds, one Billy bookcase is sold somewhere in the world.

IKEA Unique Selling Proposition Examples

The globally known Swedish-origin furniture and hardware company, IKEA, has a USP that focuses on benefiting customers through high-quality furniture for a low price. "To create a better everyday life for the many people." is their USP. IKEA's vision goes beyond home furnishing.

Inter IKEA Systems B.V., trading as IKEA (/aɪˈkiːə/ eye-KEE-ə, Swedish: [ɪˈkêːa]), is a Swedish multinational conglomerate that designs and sells ready-to-assemble furniture, kitchen appliances, decoration, home accessories, and various other goods and home services.

At IKEA, we believe that what is good for our customers, is good for us as well. Togetherness is at the heart of the IKEA culture. We are strong when we trust each other, pull in the same direction and have fun together. We want to be a force for positive change.

What is the mission statement of IKEA? ›

„To create a better everyday life for the many people, this is the IKEA vision.” Our mission as a business is „to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.” Our vision also goes beyond home furnishing.

Ikea is facing a class action lawsuit alleging that some of its furniture items aren't as sturdy as advertised, Designers Today reports. Filed by Bo Zhang in the federal court system's Northern District of California, the suit focuses on Ikea's Hemnes and Brimnes daybeds.

“To create a better everyday life for the many people.” This vision goes beyond home furnishing. We want to have a positive impact on the world – from the communities where we source our raw materials to the way our products help our customers live a more sustainable life at home.

The IKEA business idea

And if you've ever visited IKEA, you'll have probably worked out what our business idea is – “to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.”

To meet the needs of our customers we have a unique business model and value chain. It includes product development, design, supply, manufacture and sales. And of course, it starts and ends with our customers. Our value chain is about putting people first, and that starts by listening to people's needs and dreams.

IKEA stores rely on a "fixed path" design

IKEA showrooms use a “fixed path” layout — there's a designated road that you must follow, and it guides you through the store in one direction. In most stores, customers only see about 33% of the merchandise on offer.