III. Discourse
IKEA was founded in Sweden in 1943 by 17-year-old Ingvar Kamprad. 25 The furniture store
has an impressive 433 stores in 53 countries and 2019 global retail sales of about $45.5 billion. Nearly
70% of the stores are located in Europe. The retail added 19 stores last year, including its first store in
India in Hyderabad. IKEA received 957 million store visits in 2018 and 2.5 billion to Ikea.com. It offers
roughly 9,500 products. Here are a few crucial aspects to IKEA’s success. 1. Seminal change in the home business Before IKEA existed, people considered furniture to be an investment for the next 2 decades, which
resulted in a lot of anxiety and indecision. 26 They were intended to be used right after purchase and
disposed of when they wore out or, when the user had moved on to a different taste level or purchasing
strata.
2. Right demographic Creating beautiful and expensive things is easy, but IKEA has a different approach. They aim to reach
as many people as possible; thus, they tend to make beautiful and functional things that are affordable,
significantly lower than other local competitors. Besides, IKEA resonates with young people. 27 3. Unforgettable experience
As e-commerce becomes more popular, shoppers need incentive to come into stores. 28 The
design is a primary attraction, apart from customer convenience, it helps at customer engagement. Inside
the IKEA, there are tiny model homes so the customers can borrow ideas for interior decoration. There is
also space for the parents to drop their kids and for lunch. While many retailers enter shopping centers
hoping for traffic, IKEA is a standalone store that shoppers seek out with a specific goal in mind. 4. Innovative self-service approach The self-service and do-it-yourself approach successfully cuts down costs and increases profit
margins by packing everything flat to save on storage and transportation costs. IKEA sees its clients as
partners, not as customers. 29 While it may be annoying, it allows IKEA to charge less for everything. 【題組】29. (A) IKEA created products that were nicely designed, but no necessarily particularly durable.
(B) IKEA lets consumers purchase their furniture in pieces and assemble it themselves.
(C) With its elaborate showroom and cafeteria, IKEA has become a unique destination for shoppers.
(D) The products are clean with simple aesthetic and whimsical names.
(E) IKEA’s forward-thinking strategy made it the top furniture seller in the world.
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