IKEA’s Secrets

Having been born in a small village in the Småland province of southern Sweden, hard work and frugality were ingrained in him since childhood. The harsh environment with limited resources endowed him with the capacity to make the most of the resources available.Ingvar Kamprad realized early on that there was a huge market of low to middle-income families, with higher aspirations, who could not afford the exorbitantly priced furnishings that were available. So he targeted this class of people to be his customers and they have been faithful allies of this company ever since because it promised to fulfill their aspirations of a high lifestyle. Ingvar has once been quoted to have said that “The vast majority of people don’t have six-figure amounts in the bank and don’t live in enormous apartments…it is for just such people that I created IKEA. For everybody who wants a comfortable house in which to live well – A need that crosses all countries, races, and religions”. (Ingvar Kamprad) IKEA stores worldwide have more than 130 million visitors per year, which is almost one percent of the world’s population (Hopkins 1998) and this supports Ingvar Kamprad’s theory that comfortable living at moderate prices is the dream of all.The entrepreneurial streak of Ingvar Kamprad showed up at a very young age when he began selling match sticks and ball pens. In 1948 the first range of stylish modern furniture was introduced and marketed and by the year 1951, IKEA published its first catalog of items, distributed free of charge even to date. The IKEA catalog is only second to the Bible, as the most widely distributed publication.IKEA opened its first showroom in 1953 in Almhult, where customers could compare items and prices before deciding on the purchase. The company soon began designing its furniture, using local materials,purchase. The company soon began designing its furniture, using local materials, diversifying slowly into self-assemblage products.