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IKEA at a glance: FY 2010
Annual sales figures
in billion Euro
IKEA group stores
worldwide
Sales per region
IKEA experience
BUSINESS IDEA
"To offer 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."
1. WEBSITE/COMMERCIALS
2. CATALOGUE: 70% of annual marketing budget - 61 different editions in 21 languages for 26 countries
3. STORE: "lifestyle" themes, "everything under one roof", most of it available for immediate take away
4. IKEAFANS.COM
Consumer
Management
BENEFITS
SUGGESTIONS
- 24/7 shopping
- Less travelling
- Empowerment - not uni-directional
- Direct links to customer reviews
- Delivery service
- Lower costs (electricity, employees, rent)
- Increasing sales: the world is the marketplace
- Decreasing inventory costs > just in time inventory control
- Downloadable 3D modelling application
- Online account, personalized shopping lists
Real choices at IKEA
In the hyper competitive world of retailing, can IKEA reach its growth and revenue goals focusing only on the in-store experience without online sales?
- North America: E-selling - established conventional retailers, $150 billion a year for Internet sales of home furnishings
- Europe: preserve IKEA stores and new store locations with high accessibility, but review delivery policy
- Implement more promotion through social networks and viral marketing
Consumer
Management
LIMITATIONS
- Make redundant existing stores
- Website maintainance
- More complicated post-purchase services
- Against IKEA's culture
- Competition with existing e-retailers
- Limited selection of products
- Can't see/touch/try
- No in-store experience (food)
- No human interaction
- Potential lack of security and fraud
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