The Success Story of IKEA

Today, the renowned Swedish company IKEA has over 300 stores worldwide, generating annual sales of more than $28 billion. The corporation employs over 130,000 people, starting from a small store opened in 1943 by a young man who had just finished school.

Entrepreneurship at 5 Years Old

The founder of IKEA, Ingvar Kamprad, began his entrepreneurial endeavors at the age of 5. At such a young age, the resourceful Swede bought matches in bulk from a nearby store and sold them to his neighbors with a small markup. Over time, the young entrepreneur expanded his range of products, setting up a small trading post in his parents' barn where one could buy sunflower seeds, simple household accessories, stationery, and even fish. Ingvar also offered an "extended" service by mailing ordered goods or delivering them personally to the nearest railway station.

The Emergence of IKEA

Ingvar Kamprad opened his first real store with money generously given to him by his father for successfully completing school. The 17-year-old continued trading various goods under the IKEA brand. The name is a combination of the first letters of the entrepreneur's name and surname, along with the names of the area where the boy grew up (Ingvar Kamprad, Elmtaryd, Agunnaryd).

Challenges

Since 1948, furniture appeared in IKEA stores and became the brand's main product within 5 years. Kamprad was heavily involved in not only sales but also furniture design. The emphasis was on affordability, as at that time, furniture was largely considered a luxury item. IKEA offered some of the lowest prices in the market.

However, Kamprad's success did not sit well with local competitors, and in 1955, for various reasons, his main Swedish wood suppliers stopped working with him. The young entrepreneur did not falter and found new partners, this time in Poland. It was during this time that the original idea of IKEA was born – assembling ready-to-assemble furniture at the buyer's home from components. This approach helped reduce the cost of furniture for consumers, including through inexpensive transportation. In the 1960s, IKEA successfully penetrated the international market and gained popularity on all continents.

IKEA Today

All IKEA products, including soft and solid furniture, textiles, rugs, and children's items, can be found in the company's free catalog (available in 27 languages).

Ingvar Kamprad became one of the wealthiest individuals in Sweden and the world, with a personal fortune exceeding $30 billion.

IKEA has been repeatedly recognized as one of the best employers and earned the title of the best company for working mothers. The corporation places significant emphasis on charitable activities. Since 1982, the brand has been owned by the Dutch corporation INGKA Holding B.V. (one of the reasons for the sale was to optimize taxation).