IKEA Presentation Catalogue

Bringing the showroom to you.

How will IKEA address the
changing behaviors of
the modern consumer?

Building on our brand’s strong history, we’ve imagined a
future for IKEA that brings the showroom to you.

Since its founding in 1943 by 17-year old Ingvar Kamprad in
Sweden, IKEA has grown to become the world’s largest furniture
retailer with 355 stores in 29 countries and 9,500 products. Our
business idea is to offer a wide range of well-designed, func-
tional home furnishing products at prices so low that as many
people as possible are able to afford them. We are well known
for our innovative cost-cutting measures such as delivering
furniture in flat packaging for later self-assembly by customers.

Typically located on the outskirts of urban As we turn our focus to aggressively focus on
areas, our unique in-store experience e-commerce, we launched an innovative
combines a winding path store layout augmented reality app in 2017 which allows
through detailed furniture displays, the consumers use their smartphone camera to
convenient availability childcare services, preview how IKEA furniture will look in their
and an affordable restaurant serving tradi- home environment. Our future plan for IKEA
tional Swedish food (to keep you in the builds on this concept with strategies to
store longer, or course!) increase ecommerce sales and become
However, after enjoying decades with little more accessible to urban dwellers.
competition, we now face several chal-
lenges brought on by the changing behav-
iors of the modern consumer. First, only
4% of our total global sales in 2017 were
online, up from 2% in 2012, while Amazon,
our most viable threat, saw its furniture
sales increase by 50% in 2017 over the
previous year. Secondly, millenials, our
primary market, are opting to live in urban
areas and are less likely to own cars, caus-
ing IKEA stores on the outskirts of towns to
be less accessible to this demographic.
Finally, the limited durability of products
and the perception that products are not
unique due to mass production has
caused us to frequently lose customers
over thirty years of age to more premium
furniture brands.

In loving memory of our founder
Ingvar Kamprad
1926 - 2018