How IKEA Is Keeping Its Furniture Affordable

“We have a say normally that we sell umbrellas in IKEA, and we normally reduce the price of the umbrella when it's actually raining. So we like to do a bit the opposite because it's in the times, the that you have to really stretch yourself, to be closer to the customer.”

“We could have chosen to give 2,000,000,000 in the bottom line, but we decided to pass 2,000,000,000 to the many consumer. And the point was that we came from the COVID crisis, from the war in a spring or crane, from the, challenge in the supply chain, and then the whole industry and the whole society was increasing, the cost. And then we were not immune to that, and we were suffering also that. And then at some point, we said, we need to to reverse this cycle.”

“For example, in INCA, we have committed to invest €7,500,000,000 in renewable energy, mostly powered by solar, and wind. And then we have invested already 4,200,000,000. And then when we had the crisis and and the war in Ukraine that the oil in Europe at that time was depending too much on the oil coming from Russia, and then the prices going up, massively. And because we were producing energy ourselves, it was a kind of a macro hedging, so we didn't have the impact or high cost of energy.”

“In the IKEA restaurant. You know what? Everybody's tempted to say the meatballs, but I would say the hot dog. Why? It because it reminds me two important things. One is the importance of, keeping good quality with low price, and the whole idea hot dog is an icon for low price. But, also, I was lucky fortunate to spend time with Imber Kamper, the founder. And we used to spend days for studying at five in the morning until ten in the evening, walk in the store and discussing topics with only couple of hot dog in the middle of the day.”

“I like to say that, for us, the the big KPI is not top line in revenue. And then as a consequence, bottom line in profit. The big KPI is in how many homes we are present. In how many homes. Why? Because to deliver to the vision or a better life for the many people, it's the many that you need to give an answer to. And the many people are normally struggling to come to an end of the month.”

“Our founder used to say that we have to reward the mistakes. I said to him, Inbar, what about, because he was very very proud in saying we have to reward and to give a price to the people who made mistakes. And then tell me more. Can we allow too many mistakes? And he said, you have to you have to do many mistakes, but don't do the same mistake twice, he used to say.”

“But regardless of all the things, they are fundamental things that I believe will not change. A, that the home will be the most important place in the world. One. Two, the importance of having affordable and fantastic furniture to make your life better. Whatever is it, furniture. And third is the human connection, that is needed. Because the more we develop technology in the world, the more we can we need to develop the relationship and the human connection.”