IKEA

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