This is IKEA®
Even though millions of people recognize the name, we sometimes feel like people know little about who we really are.
If you'd like to know more, it is our pleasure to tell you about IKEA — from our beginnings in the 1940s all the way to today.
It's the story of a brand that has enabled millions of people to make their everyday lives more comfortable and aims to continue on that same path.
This is IKEA.
An idea shaped by the landscape of southern Sweden.
A lot has changed since Ingvar Kamprad founded IKEA in 1943. The company has grown from being a tiny Swedish business selling products through mail order to becoming one of the world’s most recognized home furnishing brands.
The region where Ingvar grew up, Småland, is rocky and rugged. In those days, many of its inhabitants were poor and lived under modest conditions. That’s why Smålanders are often said to be resourceful and inventive, approaching problems and challenges with common sense. This heritage is a core part of who we are and continues to live on in the culture and values of IKEA.
In a world where the pace of daily life keeps accelerating, our culture and values are among the most precious — and useful — things we possess. They keep us grounded and inspire us to tackle complex challenges with a mix of creative thinking and practical sense. Our heritage is also one of the main reasons why IKEA’s vision is “to create a better everyday life for the many people.”
There are about 200,000 IKEA employees. When you include the employees of our suppliers, the number exceeds one million people. In close collaboration with our customers, we want to be a positive force in the world — to be a good example of how much can be achieved through cooperation and the will to make a difference.
IKEA at a Glance
To create a better everyday life for the many people.
To offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford them.
Our value chain is specially designed to provide home furnishings to the many people in the most sustainable and cost-efficient way possible.
IKEA brings together thousands of employees and hundreds of companies with different ownership structures around the world. It is one brand, but it reaches into millions of homes and hearts.
Our Vision
Our vision is “to create a better everyday life for the many people.”
This vision influences everything we do — the products we develop, the ideas we share, the materials we use — everything. That’s why it’s both powerful and sensitive at the same time.
The vision is the compass that guides us all in the same direction. It keeps us grounded and focused on being accessible and meticulous in doing what benefits as many people as possible.
There are many reasons why we are proud of our vision. The main one is that it supports us in our daily work. It is a practical tool — not just something we say.
Our vision lives in the everyday tasks of our co-workers all around the world.
The Business Idea
While the vision tells us why we exist, the business idea tells us what we want to achieve.
The business idea is “to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford them.” These words are dear to us because they perfectly capture the essence of IKEA.
Our guiding principle in following through on this is what we call Democratic Design. According to this approach, we design products that are worthy of the IKEA brand — and the many people.
Democratic Design helps us develop only products that are beautifully designed, functional, sustainable, high-quality, and affordable.
Democratic Design may sound a bit grand, but we’re fine with that, because it enables us to live up to the business idea and turn the IKEA vision into reality.
It’s a big deal in our eyes — and hopefully in the eyes of many others too!
Our Brand
We often try to do things differently. At the heart of IKEA is the drive to explore new ways and find solutions where none have been found before. We don’t do this without reason — we do it because we believe it’s the best way to stay sharp, be creative, surprise people, and stay connected. We do it because it keeps the brand fresh and exciting.
Our brand represents the sum of everything we say and do — and everything we have said and done.
Our relationships with co-workers, suppliers, and partners are also reflected in the brand.
It is the symbol of everything we stand for, and it connects all IKEA retailers and other parts of the IKEA organization. It is something to be protected with pride.
IKEA brings together thousands of co-workers and hundreds of companies with different ownership structures around the world. It is one brand, but it reaches into millions of homes and hearts.
Lots and Lots of People
We stand with the many — but who do we mean when we talk about “the many”?
In our eyes, the many includes our customers, co-workers, suppliers, and more. We can make a difference for people with big dreams and limited means. That could be you, me, or anyone who dreams of making everyday life at home better.
Our big dream is to reach even more of the many. For that to become a reality, we need to be more open and accessible — creating space for everyone, especially those we haven’t reached well so far, and ensuring their voices are heard. We welcome the diversity of our markets and want more people to be able to influence IKEA and help make it even better tomorrow.
Greater accessibility requires new partners, new ways of thinking, and a lot of hard work. It will take a coordinated effort, where we invite our customers and suppliers to join us in the search for the best ideas.
The IKEA Value Chain
The word "value chain" may sound technical, but the IKEA value chain is all about people.
To begin with, it's the people who design and develop the products. Most of that work takes place in our hometown, Älmhult, Sweden, in close collaboration with suppliers. There, we share our knowledge to strengthen everyone’s understanding of design, material development, sustainability, and distribution. This allows us to produce better products at lower prices.
Our goal is to design only products that we believe people truly need. To discover what those products might be, we must connect with people and make them a part of the value chain. Great products that appeal to many lead to mass production and lower costs. By asking our customers to assemble the products themselves, we can offer even lower prices.
In the end, it’s people who keep the value chain running. Without communication with our customers and cooperation with our suppliers, we wouldn’t get far.
The IKEA value chain is a chain of remarkable individuals doing remarkable work!
The IKEA Value Chain
To enable the many people to create a better everyday life, we need to understand their needs and dreams. That’s the first and last step in the value chain. By listening to and working with our customers, we can improve our product range and create better products that truly matter in people’s daily lives.
Our product range is our identity, and Democratic Design is our way of creating better products at lower costs. It’s how we safeguard form, function, sustainability, quality, and low price — simply creating products we love.
We strive to make it easy and inspiring for everyone to buy IKEA products. Every interaction — in person or online — is a chance to exceed expectations and provide a rewarding and simple shopping experience. It’s extremely important to us that we remain relevant in ways that inspire and surprise, offering solutions to everyday needs.
We aim to build long-term relationships with suppliers and always work hard to develop products right on the factory floor. We also put great emphasis on constantly doing things better — such as improving sourcing and use of materials — so that increased quality and lower costs are the result.
We are known for smart solutions and efficient use of resources when transporting products and materials. We find ways to automate and streamline through design and use flat-pack packaging to save even more.
The Franchise System
When IKEA began to prosper in the early 1980s, Ingvar Kamprad realized that he needed to protect the IKEA concept.
After much consideration, Ingvar decided that a franchise system was the best solution for IKEA. It would enable the opening of stores in new markets while safeguarding the underlying philosophy and encouraging entrepreneurial thinking.
Inter IKEA Systems B.V. is the franchise owner, continuously working on developing the IKEA concept and ensuring it is implemented across all IKEA markets.
The franchisees are responsible for running the operations and pay a franchise fee.
The franchise system is people-centered and encourages everyone to contribute. It creates a framework of interdependent actions and provides a solid foundation for the IKEA brand. It enables a scalable and dynamic value chain. And last but not least, it fulfills the conditions Ingvar wanted to achieve:
- It allows IKEA to continue being entrepreneurial and encourages innovation.
- It enables IKEA to grow globally.
- It strengthens and supports the IKEA concept.
Next Steps
The story of IKEA is — and always will be — a story of great change.
Our vision — to create a better everyday life for the many people — inspires us to be creative, persistent, and brave.
Our culture is built on enthusiasm, togetherness, and initiative. We are positive, always on the lookout for opportunities, and ready to roll up our sleeves.
Whether it's about shortening assembly time and strengthening product joints with a new type of wedge dowel, participating in new design processes, or contributing with better shelters for refugees — we are constantly seeking new and better ways.
Sometimes, our drive and curiosity may lead us in the wrong direction. That’s part of being a pioneer — and that’s okay, as long as we learn from our mistakes. IKEA was founded by a very special person and will continue under the guidance of remarkable individuals in the future.
We don’t know exactly what the future holds for us. But we stay the course and stand with the many — with all those who have big dreams and small wallets. We have big dreams too, and we know that if we keep being creative and working together, tomorrow will be amazing!
