IKEA is a great example of a brand that has stayed true to its customer-focused purpose. IKEA’s brand purpose is to create a better everyday life for the many people. Their business supports this purpose 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.
IKEA was founded in Sweden by Ingvar Kamprad in 1943. Since then, the IKEA Group has grown into a global retail brand with 139,000 employees in 44 countries generating annual sales of more than 27 Billion EURO. IKEA sells ready to assemble furniture. IKEA is the world’s largest furniture retailer. Kamprad understood his customers on a personal level. Kamprad business philosophy was captured in the following statement:
“We have decided once and for all to side with the many… The many usually have limited financial resources. It is the many whom we aim to serve. The first rule is to maintain an extremely low-level of prices. But they must be lower prices with a meaning. We must not compromise either functionality or technical quality.
Low prices were important to IKEA’s success. But it wasn’t just low prices. “Low prices with a meaning” a better everyday life for the many. IKEA’s compelling purpose created a distinctive niche that mattered to its customers and employees. IKEA designed for style and cost-effective manufacturing. The furniture looks more expensive than it is. They have also created a pleasant, helpful shopping experience. IKEA has built a global brand executing all elements of their business to support their purpose.
Have you shopped at an IKEA store?