Arikah Map

IKEA

IKEA International Group

<tr><td colspan="2" style="text-align:center; padding:16px 0 16px 0;">IKEA:Ikea logo.svg</td></tr>

Type Private
Founded 1943 in Älmhult, Småland, Sweden
Headquarters Leiden, South Holland, The Netherlands

<tr><th style="text-align:right; padding-right:0.75em;">Key people</th><td>Ingvar Kamprad, Founder
Anders Dahlvig, President
Hans Gydell, VP</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Industry</th><td>Retail (Specialty)</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Products</th><td>self-assembly furniture, See section on products</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Revenue</th><td>$15.425B USD (IKEA:Green Arrow Up.svg 24%) (FY 2004)</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Employees</th><td>100,000 (2006)</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Website</th><td>www.ikea.com</td></tr>

IKEA is a privately held international low cost home furnishings retailer. The retailer was founded in Sweden, but is owned by a Dutch-registered foundation, controlled by the Kamprad family. Inter IKEA Systems B.V. is the owner/franchiser of the IKEA trademark and the IKEA Concept. It is a Dutch-registered company, with offices in the Netherlands, Sweden and Belgium.


Contents

General overview

The company distributes its goods through its retail outlets, which sell contemporary furniture; IKEA follows the formerly unconventional but often-copied principle that most of its furniture and accessories are made with the idea that the purchasers assemble the goods themselves.

IKEA:Flags at the store in Pittsburgh, Pennsylvania
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Flags at the store in Pittsburgh, Pennsylvania

The chain has 247 stores in 34 countries; most of them in Europe, the rest in the United States, Canada, Asia and Australia. More than 20 stores opened during 2005. IKEA is one of the few store chains to have locations both in Israel and in other Middle Eastern nations.

IKEA is generally pronounced IPA: [iˈke.a] but in many English-speaking regions, it is pronounced IPA: [aɪˈkiːə] rhyming with the word "idea". In addition, it is generally pronounced IPA: [iˈki.a] in Taiwan and China with a Chinese name Yíjīa(宜家).

The IKEA Catalogue, containing about 12,000 products, is printed in 180 million copies (2006) worldwide, and distributed free of charge, through mail and stores worldwide.[1] The IKEA Catalogue appears to meet or exceed the Bible (estimated at 53 to 100 million copies) in number of copies printed annually.[2]

History

IKEA was founded in Älmhult, Sweden in 1943 by Ingvar Kamprad, then 17. The company name is a composite of the first letters in his name in addition to the first letters of the names of the property and the village in which he grew up: Ingvar Kamprad Elmtaryd Agunnaryd. This acronym is incidentally similar to the Greek word οικία [oikia] (home) and to the Finnish word oikea (correct, right).

Originally, IKEA sold pens, wallets, picture frames, table runners, watches, jewelry and nylon stockings or practically anything Kamprad found a need for that he could fill with a product at a reduced price. Furniture was first added to the IKEA product range in 1947 and, in 1955, IKEA began to design its own furniture. The company motto is: "Affordable Solutions for Better Living".

At first, Kamprad sold his goods out of his home and by mail order, but eventually a store was opened in the nearby town of Älmhult. It was also the location for the first IKEA "warehouse" store which came to serve as a model for IKEA establishments elsewhere and on March 23, 1963, the first store outside Sweden was opened in Asker, a Norwegian municipality outside Oslo.

Products

IKEA furniture is well known for its modern, utilitarian design. Also, because much of it is self-assembly furniture (also known as "flat-pack"), it is designed to be assembled by the consumer rather than being sold pre-assembled. IKEA claims this permits them to reduce costs and use of packaging by not shipping air; the volume of a bookcase, for example, is considerably less if it is shipped unassembled rather than assembled. This is also a practical point for many of the chain's European customers, where public transport is commonly used; the flat-pack distribution methods allows for easier transport via public transport from the store to a customer's home for assembly.

IKEA:IKEA in Kungens Kurva, just south of Stockholm, Sweden
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IKEA in Kungens Kurva, just south of Stockholm, Sweden

IKEA contends that it has been a pioneering force in sustainable approaches to mass consumer culture. Kamprad refers to the concept as "democratic design," meaning that the company applies an integrated approach to manufacturing and design (see also environmental design). In response to the explosion of human population and material expectations in the 20th and 21st century, the company implements economies of scale, capturing material streams and creating manufacturing processes that hold costs and resource use down, such as the extensive use of particle board. The intended result is flexible, adaptable home furnishings, scalable both to larger homes and smaller dwellings.

IKEA has also expanded their product base to include flat-pack houses, in an effort to cut prices involved in a first-time buyer's home. The product, named BoKlok was launched in Sweden in 1996 in a joint venture with Skanska. Now working in the Nordic countries and in UK, sites confirmed in England include London, Manchester, Leeds and Liverpool.[3]

Although IKEA household products and furniture are Swedish designed, they are produced in developing countries to hold down costs. Very little production actually takes place in Sweden.

Product names

IKEA products are identified by single word names. Most of the names are either Swedish, Danish, Finnish or Norwegian in origin. Although there are some notable exceptions, most product name are based on a special naming system developed by IKEA.[4]

For example, DUKTIG (meaning: good, well-behaved) is a line of children's toys, OSLO is a name of a bed, JERKER (a Swedish masculine name) is a popular desk, DINERA for tableware, KASSETT for media storage. One range of office furniture is named EFFEKTIV.

A notable exception is the IVAR shelving system, which dates back to the early 1970s. This item is named after the item's designer.

Because IKEA is a world-wide company working in several countries with several different languages, sometimes the Nordic naming leads to problems where the word means something completely different to the product. A well known example was the bed frame GUTVIK: in German-speaking countries, it can be translated in “good performing sex”.

Company founder Ingvar Kamprad, who is dyslexic, found that naming the furniture with proper names and words, rather than a product code, made the names easier to remember.

Store format

IKEA:An IKEA Store in Singapore
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An IKEA Store in Singapore

Newer IKEA stores are usually very large blue boxes with few windows. They are often designed around a "one-way" layout which leads customers along "the natural way". This layout is designed to encourage the customer to see the store in its entirety (as opposed to a traditional retail store, which allows a consumer to go right to the section that the goods and services needed are displayed). The sequence involves going through furniture showrooms, housewares (market-hall), then the warehouse where one collects flatpacks for products seen in the showrooms, and then arrive at the cashier's station to make payment.

Whilst the original design involved the warehouse on the lower level and the showroom and markethall on the upper, some stores are single-level bungalow-style stores while many U.S. and Canadian stores and all German stores place the showroom upstairs and the marketplace and warehouse both downstairs. Some stores maintain separate warehouses to allow more stock to be kept on-site at any given time, although this occasionally results in challenges in finding the items, as well as a perception of having to queue in line twice.

Many stores include restaurants serving typically Swedish food, and beverages such as lingonberry juice. The restaurant area is usually the one place in the store where there are large windows. Outside of Scandinavia, these restaurants are sometimes complemented by mini-shops selling Swedish-made, Swedish-style groceries. As would be expected with IKEA, you can buy IKEA's specialities, such as Swedish meatballs, in parts (i.e. the ingredients) at these stores and assemble it (that is, simple, straightforward food preparation) at home.

Most IKEA stores also offer an "as-is" area at the end of the warehouse just prior to the cashiers. Returned, damaged and formerly showcased products which are not in "as new" condition are displayed here, and sold with a discount, but also with a "no-returns" policy. In the United Kingdom, this is referred to as "Bargain Corner".

In Hong Kong, where shop space is limited and costly, IKEA has opened four outlets across the city, which are actually part of conveniently located shopping malls. They are relatively tiny, compared to common "large blue box" store design, yet most of them are still in the "one-way" layout. However, the newest outlet in Telford Plaza does not follow this template, and the three independent floors can be accessed freely from each. Following IKEA tradition, though, the only cashier is located on the lowest floor.

Catalogue

IKEA:Cover of the 2007 edition US Catalogue
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Cover of the 2007 edition US Catalogue
IKEA annually publishes a popular mail-order catalogue. First published in Swedish in 1951, the catalogue is now published each summer in 46 different editions, in 23 languages for 32 countries,[5] and is considered to be the main marketing tool of the retail giant, consuming 70% of the company's annual marketing budget.[6] In terms of publishing quantity, the catalogue has surpassed the Bible as the most published work, estimated 174 million copies (2006) worldwide, triple that of the less materialistic counterpart;[7] however since the catalogue is free of charge, the Bible continues to be the most purchased non-fiction work.[8] In Europe alone the catalogue reaches more than 200 million people annually. Containing over 300 pages and about 12,000 products, it is distributed both in stores and by mail.[9] Most of the catalogue is produced by IKEA Catalogue Services AB in IKEA's hometown of Älmhult, Sweden where IKEA operates the the largest photo studio in northern Europe at 8,000 square meters in size.[10] The catalogue itself is printed on chlorine-free paper of 10-15% post-consumer waste.

According to Canadian broadcaster, CTV, "IKEA's publications have developed an almost cult-like following online. Readers have found all kinds of strange tidbits, including mysterious cat pictures, apparent Mickey Mouse references and weird books wedged into the many shelves that clutter the catalogues." A facebook group even celebrates the male dog found in the 2007 catalogue [11].

IKEA also publishes and sells a regular style magazine, titled IKEA Family Live in thirteen languages which supplements the catalogue. An English language edition for the United Kingdom has been announced for February 2007 and is expected to launch with a subscription of over 500,000.[12]

Corporate structure

IKEA:Bloomington, MN, USA
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Bloomington, MN, USA
Despite IKEA's Swedish roots, the owner/franchiser of the IKEA trademark and concept is a Dutch-registered company, Inter IKEA Systems. The operator/franchisee of the majority of the stores worldwide is a separate entity, the IKEA Group, a private group of companies owned by a Dutch charitable foundation.

Of the 247 IKEA stores in 34 countries, 219 are run by the IKEA Group. The remaining 28 stores are run by franchisees outside of the IKEA Group.[13]

INGKA Holding is the ultimate parent company for all IKEA companies, including the industrial group Swedwood but excluding Inter IKEA Systems. INGKA Holding is wholly owned by the Stichting INGKA Foundation, which is a charitable foundation registered in the Netherlands. In May 2006, the business magazine The Economist reported that the foundation was the world's wealthiest charity with a net worth estimated at exceeding US$36 billion (more than the Bill & Melinda Gates Foundation), although the foundation's purpose is largely corporate tax-avoidance and anti-takeover protection for IKEA.[14]

Community impact

IKEA's goals of sustainability and environmental design in their merchandise have sometimes been at odds with the challenges that the impact a new IKEA store can have on a community.

IKEA stores are not commonplace, particularly in the United States, where consumers anticipate a retail outlet to be fairly accessible and have a number of locations. While the stores draw consumers from far and wide, the traffic and congestion impact of a store on a particular community can be a challenge.
IKEA:IKEA Barkarby, Stockholm, Sweden
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IKEA Barkarby, Stockholm, Sweden

Despite many negative impacts, there are some positive roles that IKEA plays in the local and global community.

Shuttle bus

As part of IKEA's global mandate to make their stores more convenient and accessible, and with community impact in mind, IKEA operates free shuttle buses at some of their stores, including:

Criticisms

Some criticisms of IKEA:

IKEA:Villepinte, France
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Villepinte, France

Diversity

IKEA ran a commercial widely thought to be the first commercial featuring a gay couple. It aired only once, in 1994. [7] It has also had other commercials targeting the gay community, as well as a commercial featuring a transgendered woman. [8]

IKEA was also named one of the 100 Best Companies for Working Mothers in 2004 and 2005 by Working Mothers magazine. It ranked 96 in Fortune's 100 Best Companies to Work For in 2006.

Design reform

As pointed out by circuit lecturer Will Novosedlik, IKEA embodies the principles of design reform begun by William Morris and John Ruskin, insofar as the company seeks to elevate public taste by providing quality goods at affordable prices.

Television

πkea Robot: (leaving) Enjoy your affordable Swedish crap!
Bender: Finished! And only seven missing pieces!
Fry: Those Swedes sure know how to put in almost everything you need!
Rachel: So basically, you get your ya-yas by taking money from all of your friends.
Ross: Yeah.
Chandler: Yes, and I get my ya-yas from IKEA. You have to put them together yourself, but they cost a little less.
(Chandler sits on rich guys couch)
Chandler: I-KEA this is comfortable...
Rachel: So, what’s your name?
Phoebe: It’s a normal Swedish name... IKEA...
Rachel: Oh... what an interesting name.
Phoebe: Ja!

Film

Music

Kanye: 'I unpacked all my shit. You know, we went to IKEA, I bought a bed, I put the bed together myself. I loaded up all my equipment, and the first beat I made was, uh, 'Heart of the City.'"
"We took him to IKEA, and while I sat on the benches, he ate a sofa named Bjorn and seven Allen wrenches"

Literature

Art

Other

Refurbishments

Australia

IKEA has recently refurbished their Australian Stores. In particular, it has closed its IKEA Springwood Store in Brisbane, Queensland, and has opened a mega-store four times the size of the original at Slacks Creek, nearby suburb to Springwood. The new IKEA Logan opened 26 October 2006, celebrating with opening specials and a new catalogue with promotional advertising materials for the new store. The catalogue was sent to existing clientele in the Queensland state promoting the new and only mega-store within the Queensland Region. Similar new promotional ventures have taken place in New South Wales and Victoria, including closure of four existing IKEA stores in Australia and opening of two mega-stores in the appropriate states.

United Kingdom

Croydon, Lakeside, Warrington and Gateshead stores have recently undergone refurbishment to expand the store both internally and externally. Both of the latter stores have had mezzanine floors fitted to rehouse their showrooms, leaving the lower floors with expanded 'Self-Serve' areas and new customer restaurants.

IKEA's debut in each country

YearCountryLocationNotes
1958 IKEA:Sweden Sweden Älmhult Curently 16 stores, Sweden has the worlds largest IKEA (outside Stockholm 55,200 m2)
1963 IKEA:Norway Norway Asker (Nesbru)
1969 IKEA:Denmark Denmark Copenhagen(Ballerup) Moved to Høje Tåstrup circa 1979
1973 IKEA:Switzerland Switzerland Zürich(Spreitenbach)
1974 IKEA:Germany Germany Munich(Eching)
1974 IKEA:Japan Japan Kobe This was a joint venture with a Japanese department store. It withdrew from the market in 1986 because of stagnant sales; an IKEA opened in Funabashi, Chiba in 2006 that included a distribution partnership with the Mitsubishi Corporation under the supervision of prominent account executive, Ai Kobayashi-Boswell
1975 IKEA:Australia Australia Sydney(Artarmon) Closed 2005, in preparation for a new & larger store in Rhodes which is now open and trading as of 2005/2006.
1975 IKEA:Hong Kong Hong Kong Kowloon(Tsim Sha Tsui)
1976 IKEA:Canada Canada Dartmouth, Nova Scotia (Burnside Park) This was a temporary North American market test store which closed in 1998. It was very successful. The first permanent store was built in Richmond, British Columbia later in 1976). Current number of stores: 11.
1977 IKEA:Austria Austria Vienna (Vösendorf)
1978 IKEA:Singapore Singapore Sixth Avenue later Katong Now at Queenstown with a new store in Tampines.
1978 IKEA:Netherlands The Netherlands Sliedrecht New stores opened in Breda and Barendrecht, old store in Sliedrecht closed in 2006
1980 IKEA:Spain Spain Gran Canaria (Las Palmas)
1981 IKEA:Iceland Iceland Reykjavík New store opened in Garðabær in October 2006, old store closed
1981 IKEA:France France Paris (Bobigny)
1983 IKEA:Saudi Arabia Saudi Arabia Jeddah
1984 IKEA:Belgium Belgium Brussels (Zaventem and Ternat)
1984 IKEA:Kuwait Kuwait Kuwait City
1985 IKEA:United States United States Philadelphia (Plymouth Meeting)(This store has moved about 2 miles away to a larger location, and as of June 25, 2006, the first building sits empty)
1987 IKEA:England England Warrington, Cheshire This is considered their Manchester site although it isn't actually in Manchester. There have been 14 stores built since with the most recent in Ashton-under-Lyne, which is in Greater Manchester. The superstore opened on 13 October 2006 and has proved to be a huge success to the local economy.[citation needed]
1989 IKEA:Italy Italy Milan (Cinisello Balsamo)
1990 IKEA:Hungary Hungary Budapest
1991 IKEA:Poland Poland Warsaw
1991 IKEA:Czech Republic Czech Republic Prague (Zličín)
1991 IKEA:United Arab Emirates United Arab Emirates Dubai
1992 IKEA:Slovakia Slovakia Bratislava
1994 IKEA:Republic of China Taiwan Taipei
1996 IKEA:Finland Finland Espoo
1996 IKEA:Malaysia Malaysia Bandar Utama Re-located to Mutiara Damansara in 2003
1998 IKEA:People's Republic of China China Beijing
1999 IKEA:Scotland Scotland Edinburgh
2000 IKEA:Russia Russia Moscow (Khimki)
2001 IKEA:Israel Israel Netanya
2001 IKEA:Greece Greece Thessaloniki
2003 IKEA:Wales Wales Cardiff
2004 IKEA:Portugal Portugal Lisbon
2005 IKEA:Turkey Turkey Istanbul
2007 IKEA:Romania Romania Bucharest26,000 square meter store to open Spring 2007 [31]
2007 IKEA:Republic of Ireland Ireland Dublin (Ballymun) Approved by the government.[32] Store planned to open in 2007 ( conditional on meeting local authority requirements) [33]
IKEA:Northern Ireland Northern Ireland Belfast IKEA awaiting planning permission for 29,000 square meter store.[34]

See also

Notes

  1. ^ IKEA Q&A section, on the Swedish language site.
  2. ^ Martin Roth. The Bible vs. the Ikea Catalogue – Which is Winning Hearts?.
  3. ^ "Buying a house? Pick up a flatpack at Ikea", guardian.co.uk, 2005-02-02.
  4. ^ (German) Waren Sie schon mal in Klippan?.
  5. ^ IKEA FAQs.
  6. ^ IKEA student info.
  7. ^ Martin Roth. The Bible vs. the IKEA Catalogue – Which is Winning Hearts?.
  8. ^ Guinness Book of World Records.
  9. ^ IKEA Q&A section, on the Swedish language site.
  10. ^ 2003 IKEA Catalogue printable facts.
  11. ^ Facebook.com Penis on the Dog Campaign.
  12. ^ Daniel Farey-Jones. Ikea to introduce UK magazine in February.
  13. ^ IKEA Group corporate site: about us.
  14. ^ IKEA: Flat-pack accounting.
  15. ^ "Ikea loses fight to build store", BBC News, 2005-02-18.
  16. ^ "Fury as Prescott blocks Ikea store", manchesteronline, 2004-08-03.
  17. ^ "Ikea's superstore plans approved", BBC News, 2006-01-11.
  18. ^ Television Advertising Complaints Reports: uptight British. ofcom.org.uk.
  19. ^ Television Advertising Complaints Reports: management consultant. ofcom.org.uk.
  20. ^ Television Advertising Complaints Reports: homosexual marriage breakup. ofcom.org.uk.
  21. ^ Founder of Ikea store haunted by Nazi past (2000-04-07).
  22. ^ Ingvar Kamprad - IKEA Founder and One of the World's Richest Men.
  23. ^ Norwegian prime minister slams IKEA (2005-03-10).
  24. ^ RTÉ report on the loosening of shop planning laws
  25. ^ 'Unfortunate' photo wasn't tampered with: IKEA
  26. ^ 'The Scott Mills Show Reviews' Unofficial Mills, September 7, 2006
  27. ^ Ben Hoyle. "Ikea stands up for women's rights - to spend hours assembling furniture", Times Online, 2005-03-11.
  28. ^ James Cockington. "Loose change", The Age, 2006-08-23.
  29. ^ Iain Hollingshead. "Help! I'm lost in the crush at Ikea", Telegraph, 2006-08-23.
  30. ^ http://www.weebl.jolt.co.uk/pikea.htm
  31. ^ IKEA will have 400 employees by next spring Ziarul Financiar November 7, 2006. Accessed November 9, 2006
  32. ^ Decision gives Ikea (sic) plan the all clear RTÉ January 5, 2005. Accessed October 7, 2006
  33. ^ IKEA given planning permission to open giant furniture store in Dublin subject to conditions Finfacts Ireland October 11, 2006. Accessed November 12, 2006
  34. ^ Ikea (sic) enlarge planned Belfast shop BBC News May 26, 2006. Accessed October 7, 2006

Official sites

Catalogue

Criticisms

Fan Sites

News coverage

Business data

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Articles with unsourced statements | Furniture retailers | Fortunes Top 100 Places to Work in America | Furniture manufacturers | Companies of Sweden | Companies established in 1943 | Multinational companies headquartered in the Netherlands | Furniture retailers of the United States | Companies without an unabbreviated name | Lifestyle magazines

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