Assembly IS required - the story of IKEA
While there are many internationally known Swedish brands few are as recognizable as IKEA, the furniture giant. The company and its history are closely intertwined with Swedish culture, and its stores are small islands of Swedishness across the globe. In today’s blog, I will tell you the history of Ikea and its eccentric founder.
The founder of the furniture company IKEA was Ingvar Kamprad, a Swedish businessman. The acronym IKEA comes from Ingvar Kamprad, E for Elmtaryd (his family's farm), and A for Agunnaryd (his hometown). Ingvar Kamprad was born on March 30, 1926, in Småland, Sweden. Småland was an impoverished region of Sweden at the time marked by harsh winters and a shortage of resources, creating a hardworking but frugal attitude in Kamprad. This frugal attitude would go on to influence his business practices. At the young age of 5, Ingvar Kamprad's entrepreneurial spirit showed its grassroots beginning. He began selling matches bought in bulk from his family's farm to his neighbors at a discounted price while making a modest profit on the transactions. Kamprad was a born entrepreneur, always on the lookout for opportunities. At the age of 17, Kamprad registered his own company, initially selling housewares and furniture under his own name. He began sourcing supplies from Poland and was eventually able to establish his first showroom in downtown Stockholm.
Kamprad's obsession with making his business efficient, cost-effective, and hassle-free led him to develop furniture design with self-assembly. This not only saved a significant amount of money but also made it convenient for customers to transport and assemble at home. IKEA's products were exceptionally popular with young budget-conscious people who needed affordable furniture for their first apartment. IKEA would use a network of local manufacturers that would supply them, greatly mimicking the franchise nature we see in businesses today. This meant constant innovation to maintain customer satisfaction but fostered business agility. Kamprad was consistently setting up new agreements while diversifying designers and product lines.
In addition to its innovative and affordable furniture, IKEAs is known for its unique stores. The company's stores are designed to be more than just furniture stores. They are intended to be a destination in their own right, with many stores including restaurants, cafes, and children's play areas. Most of the stores are massive, with multiple floors, and are stocked with a vast selection of products. While most international companies adopt their stores and products to the local market, IKEA takes the opposite approach; it keeps Swedish names of furniture in all markets, has Swedish themes in the stores, and serves Swedish food at its locations around the world. Definitely worth a visit for any fan of Sweden!
Ikea has also been proactive in its approach to sustainability. The company set a goal of becoming energy and resource independent by 2020, and it also committed to using sustainable materials in its products. Ikea has invested heavily in renewable energy and has also implemented energy-efficient practices in its stores and logistics operations.
By the 1990s, IKEA had become the largest furniture retailer in the world, with more than 400 outlets across Europe, North America, Asia, and Australia. Where I live in the Chicago western suburbs I can get to my local IKEA in about 20 minutes, so if I get homesick I will always go there to experience Swedish culture, have some meatballs and mashed potatoes, and Swedish fika. If you want to experience Swedish culture while learning the language you can take one of my private lessons or group classes. Just sign up for a free trial or consultation below and get started today!
