You are on page 1of 4

http://franchisor.ikea.com/images/index_05.

gif

The IKEA Concept The IKEA Range
Trends come and go, but combining a low price with good design and function never goes out of style. Concept The IKEA Concept is based on offering a wide range of welldesigned, functional home furnishing products at prices so low that as many people as possible will be able to afford them. Rather than selling expensive home furnishings that only a few can buy, the IKEA Concept makes it possible to serve the many by providing low-priced products that contribute to helping more people live a better life at home. The IKEA Concept guides the way IKEA products are designed, manufactured, transported, sold and assembled. All of these factors contribute to transforming the IKEA Concept into a reality. The IKEA Concept is founded on a low-price offer in home furnishings.

Profile Fundamental activities such as eating, sleeping, storing items, socialising and so on create a demand for furniture and practical products that solve essential human needs. Furthermore, the vast majority of people have limited budgets and limited space in their homes. The IKEA product range meets these needs by offering 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. The IKEA range includes products for every part of the home.

IKEA products have the label "Design and Quality, IKEA of Sweden" and are sold in IKEA stores. How the IKEA Concept Began The IKEA Concept began when Ingvar Kamprad, an The IKEA range has a profile that reflects the IKEA way of thinking. It is entrepreneur from the Småland province in southern simple and straightforward. IKEA products are hard-wearing and easy to Sweden, had an innovative idea. In Småland, although the live with. They reflect and facilitate an easy, natural and unconstrained soil is thin and poor, the people have a reputation for way of life. They express form, and are colourful and cheerful. And they working hard, living frugally and making the most out of appeal to the young at heart of all ages. limited resources. So when Ingvar started his furniture business in the late 1940s, he applied the lessons he learned in Småland to the home furnishings market. Design While most retailers use design to justify a higher price, IKEA designers Ingvar's innovative idea was to offer home furnishing work in exactly the opposite way. Instead they use design to secure the products of good function and design at prices much lower lowest possible price. IKEA designers design every IKEA product than competitors by using simple cost-cutting solutions that starting with a functional need and a price. Then they use their vast did not affect the quality of products. Ingvar used every knowledge of innovative, low-cost manufacturing processes to create opportunity to reduce costs, and he scraped and saved in functional products, often co-ordinated in style. Then large volumes are every way possible - except on ideas and quality. This is purchased to push prices down even further. how the IKEA Concept began. Most IKEA products are also designed to be transported in flat packs and assembled at the customer's home. This lowers the price by minimising transportation and storage costs. In this way, the IKEA Concept uses design to ensure that IKEA products can be purchased and enjoyed by as many people as possible. The name IKEA comes from the initials of Ingvar Kamprad, I and K, plus the first letters of Elmtaryd and Agunnaryd, which are the names of the farm and village where he grew up. Today, the IKEA trademark represents the leading home furnishings brand in the world with more than 300 stores in more than 35 countries and more than 130,000 co-workers. Timeline

Function The many people have many needs. They live with kids. They need more storage. They have to make the most of out a small space. So IKEA designers are always seeking new ways to improve people's lives without emptying their wallets.

But how can good design and function be combined with good quality, all 1926 at a low price? It starts with focusing on what's important. Will an IKEA founder Ingvar Kamprad is born. expensive finish on the back of a shelf or under a table-top improve the function? Absolutely not. So IKEA designers do not do it, because a 1943 product is of no use to the customer if it is not affordable. Ingvar Kamprad registers his firm IKEA, (Ingvar Kamprad Elmtaryd Agunnaryd) on July 28 Low Price Low price is a prerequisite for the IKEA Concept to realise the IKEA vision - "to create a better everyday life for the many people". As the IKEA Concept aims to serve "the many people", the IKEA product range needs extremely low price levels. 1945 The very first IKEA advertisement, written by Ingvar Kamprad, appears in local newspapers. 1948

IKEA designers do their part to keep prices low by using production capabilities from other areas in unique and previously unimagined ways like having a shirt factory produce furniture upholstery. Or using leftover materials from the production of one product to create an entirely new one.

Stylish, modern furniture is introduced into the IKEA product range. 1951 The very first IKEA catalogue is published.Then, as now, free of charge.

IKEA customers also contribute to keeping prices low. They select and 1953 pick up the products themselves, transport them home and then Ingvar Kamprad opens his first furniture showroom in assemble them themselves. And they can enjoy them already later that Älmhult, Sweden. day. 1955 IKEA starts to design its own furniture. The commitment to © Inter IKEA Systems B.V. 2003 – 2009\ provide functional, well-designed home furnishings at prices so low that as many people as possible will be able to afford them begins. The IKEA Store The IKEA store is large. It has to be in order to offer a wide and deep range of products that people can take home immediately and enjoy the 1958 same day. As well as to inspire people in realistic room settings and real- The world's first IKEA store opens in Älmhult, Sweden. life homes. 1958 There are now more than 100IKEA co-workers. How It Works 1958 The IKEA store is where the IKEA range is sold. It is also where the IKEA designer Gillis Lundgren designs the TORE series, range comes to life. Visitors are encouraged to take their time and get which was first displayed in rooms for children. comfortable with IKEA home furnishing solutions and products in realistic room settings and real-life homes. To sit, lie down, open and close 1959 drawers.. To compare styles. Compare prices. And imagine the Self-assembly furniture begins and gradually develops as possibilities! part of the IKEA Concept. Flat packages = reduced transport costs = lower prices. IKEA customers are actively involved in the shopping experience. The IKEA Concept relies on customers to choose, collect, transport and 1961 assemble IKEA products themselves. All products in the store are IKEA begins conducting quality tests on its products using supported by price and product information that is clearly marked on Swedish testing standards. large, easy-to-read tags. This makes it easy for visitors to serve themselves. There are, of course, knowledgeable co-workers available 1961 to customers when needed. Customer involvement contributes to IKEA The first non-Scandinavian suppliers, based in Poland, are low prices. That is the idea behind: "You do your part. We do our part. contracted. Their first delivery is 20,000 chairs. Together we save money." 1963 The first IKEA store outside Sweden is opened in Oslo The goal is that everyone will enjoy their visit in the IKEA store. If the kids don't want to shop, they can play in the supervised play area. It may (Nesbru), Norway. be hard to get them to leave, but they can be tempted with a treat from 1964 the IKEA Restaurant & Café. Visitors can reward themselves for successful shopping with a plate of Swedish meatballs (and buy a bag of The ÖGLA chair, a café chair made of bent beechwood, meatballs from the unique IKEA Swedish Food Market in the exit area of bought in Poland, is redesigned to fit the form, function and price requirements of the IKEA Concept. most IKEA stores). Shopping Experience Inside the IKEA store, there are hundreds of inspirational displays - from realistic room settings to real-life homes, all with product combinations that provide fresh ideas and know-how on contemporary interior design. There are up to 10,000 different products offered in the IKEA store. There are many new products introduced throughout the year in the IKEA store. This gives visitors huge possibilities to find solutions that best suit their needs. 1964 A price/quality comparison published in "Allt I Hemmet" magazine confirms that IKEA products are of good function and design at a low price, and does wonders for IKEA sales.

1965 The largest IKEA store is opened in Kungens Kurva, Stockholm. The success of the opening led to the idea of opening up the warehouse and letting people serve themselves; an important part of the IKEA Concept was While exploring the store, visitors may be inspired to pick up a few extra born. products. The IKEA store is laid out so they will not only find what they came for, but also be inspired by unexpected ideas and low-priced 1965 products as well. The Cook Shop, featuring a range of kitchen items, opens in The IKEA store provides everything that is needed for convenient shopping: pencils, notepads, tape measures, store guides, IKEA catalogues, shopping bags, strollers and trolleys. The only thing that Kungens Kurva, becoming the place where most people can buy quality utensils at low prices - leaving more money for food.

customers need to bring is an empty car to take purchases home. Or 1973 they can use the low-priced IKEA home delivery service if that is easier. The first IKEA store outside of Scandinavia opens in Spreitenbach, Switzerland. And no one has to shop on an empty stomach. IKEA stores have a restaurant that serves unique Swedish dishes along with local favourites. 1974 It is a comfortable place to relax, look through the IKEA catalogue and A plastic chair called SKOPA is developed by a supplier that think about what to buy. usually makes plastic buckets. This is just one of the innovative ideas IKEA designers have come up with creating functional, well-designed products at low prices. © Inter IKEA Systems B.V. 2003 – 2009 click on the "print" button in your browser to print this page. 1978 IKEA brings storage shelves into the living room, which greatly upsets tidy people at first. But soon they learn to appreciate just how tidy IVAR storage units can make a room. 1980 LACK, another innovative product, is introduced. This lowpriced, functional coffee table is made from a strong, light material that is normally used for interior doors.

The IKEA Catalogue
The IKEA catalogue is a daily invitation to the IKEA store. It offers solutions, inspiration and low-priced products. Prices in the catalogue are valid for a 12-month period.

Purpose The IKEA catalogue shows how the IKEA product range helps to create 1980 a better everyday life for the many people. Although the IKEA catalogue The KLIPPAN sofa with removable, washable covers is is extensive, it shows just a part of the range that the IKEA store offers, introduced. Children and parents quickly start discovering and the price of each product. There are thousands or more products to the practical benefits. choose from in the IKEA store. And many new products are continuously introduced in the IKEA store all year long. 1982 The PATRULL series, a line of children's safety products is The IKEA catalogue serves as a permanent invitation to the IKEA store. launched, highlighting the IKEA commitment to safety at It provides constant inspiration, and serves as an invaluable source of home. product information throughout the year. It also contains details on how to get to the nearest IKEA store and its opening hours. 1984 The STOCKHOLM range of furnishings appears. It had Browse the IKEA range from the comfort of home and plan the next trip everything expected of classic high quality, except a high to the IKEA store. Feel free to copy the ideas inside and pass them off price. STOCKHOLM received the prestigious Excellent as your own. No one will tell. Swedish Design award. The Story of the IKEA Catalogue In the late 1940s, the first IKEA advertisements appeared in local newspapers. Demand for IKEA products soared, and Ingvar Kamprad quickly outgrew his ability to make individual sales calls. As a result, he began operating a mail order catalogue and distributed his products via the county milk van. This resourceful solution to a difficult problem led to the annual IKEA catalogue. 1985 A supermarket trolley factory helped IKEA with the frame for the MOMENT sofa. The innovative design won a prize. 1995 The IKEA PS series is first presented. This series allows designers free reign to shape the latest creations. The low prices, however, are set with a firm hand.

The IKEA catalogue has been a vital part of IKEA retailing since the first edition was published in Sweden in 1951. Today, more than 100 million 1996 Some things from the past can still be great. This is the households around the world receive the IKEA catalogue, every year, reasoning when IKEA launches products based on 18th free of charge. century Scandinavian furnishings.
© Inter IKEA Systems B.V. 2003 – 2009

Ikiea franchising
Inter IKEA Systems B.V. is the owner and world-wide franchisor of the IKEA Concept and aims to bring IKEA products to as many people as possible by franchising the IKEA Concept to franchisees. Right to franchise the IKEA Concept is only granted in new countries with no IKEA operations present. All our existing IKEA Stores are shown at our homepage.

1997 For the most important people in the world, Children's IKEA is launched. A range specially developed for children. 1997 IKEA opens in a place where no one lives. The Internet. 1999 Ingvar Kamprad initiated the very unique Big Thank You Event as a millennium reward to co-workers. The total of all sales on this special day was given to co-workers.

2002 IKEA dares to be different - again. With its cutting edge Inter IKEA Systems B.V. is constantly evaluating new countries and is design it has even transformed an historic Swedish souvenir following a long-term strategic expansion plan, which sets our prioritiesinto a cool, contemporary design object.

of future growth navigates where to put focus and when. Decision to enter a new country is made after a thorough market study and a franchisee will be carefully evaluated and approved. When selecting franchisees, Inter IKEA Systems B.V., among other things, evaluates the following:

2003 An IKEA donation helps a Swedish hospital to build 'The Kamprad House' with facilities for cancer research, radio physics and education.
© Inter IKEA Systems B.V. 2003 – 2009---------------------------------end of topic

• thorough retail experience • extensive local market knowledge and presence • corporate culture and values • financial strength and ability to carry through the investment penetrating a country in full and in a large-scale retail environment format

Any franchisee must demonstrate its ability to establish and operate IKEA stores nationally.