Speaking of “IKEA”, what does that you remind of? This is the general image that is a huge North European home furnishing store that sells reasonable and sophisticated designed furniture, and the image that many people hold would be that logo and large building colored only blue and yellow. The company has been using the colors to get publicity for their identity because the colors represent the Swedish flag and IKEA originated as a small variety store in the country. The founder Ingvar Kamprad was only 17 at that time and lived on a farm named Elmtaryd in Agunnaryd, and is now over 80, yet he still supports the company. The name IKEA is an abbreviation of “Ingvar Kamprad Elmtaryd Agunnaryd”. Now the company has become the biggest chain furniture shop in the world, which has 278 stores in 36 countries. It has been expanding their business into the world and also it is one of the few store chains located in Israel and in other Middle Eastern nations.
IKEA safeguards their basic business idea, “Democratic Design” that means “to create a better everyday life for people”. That is evident in their product’s design and low prices. Is there any company that highlights their prices with more confidence than IKEA? Their advertisements include posters, commercials(see one example)and magazine, is very simply designed with only numbers representing prices and an interesting image. Other information about products such as size, colors and specific benefits to attract consumers, is totally eliminated from their ads. Looking at their way to display, the most noticeable things are signs displaying prices. Although general’s shop would try to display products by using lights and flowers, etc, to make them look as beautiful as possible, IKEA never does that. This is because they think it is wasteful spending and above all, they have big pride and confidence in their high quality products with and they seem to be aware people know that. IKEA does several things to sell at as low prices as possible. First of all, they decide on a price first before they design a new product although it is an uncommon way. Secondly, they try to cut labor costs, so consumers have got to serve themselves at IKEA shops, there are no service clerks to carry baggage for customers. Therefore all products of IKEA are packaged compactly and are RTA (ready to assemble). In fact, IKEA failed in one venture in Japan because of their lack of service. However, it is popular in Japan now.
IKEA’s concept is shown in the design of their products as well, which are designed simply to be able to suit any type of room. The atmosphere created by colors and materials of their products; blond woods, natural clothing, paintless finishing, would be warm and refreshing. This is related to the climate in Sweden, which is somber all the year round, and they need to create a mood like the sunlight comes into their house. As for IKEA’s designers, they are required many things, not only to design products with good function and visual but also to think about the environment. Products they design are able to be flat and stack in order to reduce the mount of package to transport and the number of tracks that eliminate carbon dioxide.
Thus, IKEA’s business basic idea “Democratic Design” applies to all sides from people’s lives to world environmental problems. Behind this background is that they have searched for best life style of Swedish people who living in harsh weather and natural environments. This would be only one reason IKEA has engaged people’s hearts and minds and been accepted by many people in the world. IKEA wasn’t accepted in Japan, but it actually become popular now. This would be because Japanese people could understand the true meaning of “Democratic” of their policy through their way thinking about costumers seriously. IKEA would much more reach Japan in the future.