Ikea

[Pic Courtesy BusinessWeek]

The latest issue of BusinessWeek looks at how the Swedish furniture store Ikea has become a global brand. According to the article, “Ikea World is a state of mind that revolves around contemporary design, low prices, wacky promotions, and an enthusiasm that few institutions in or out of business can muster.” We’ve been to the Palo Alto store a few times and I couldn’t agree more. The article looks at the company’s brand management, marketing, philosophy and strategy and makes for very interesting reading.

As in the case of most couples, my wife I have completely different tastes when it comes to shopping. Stores like Macy’s and Gap tend to be my wife’s favorite haunts while I could spend hours just walking around Best Buy or Fry’s Electronics. But Ikea is one of those rare stores where both the wife and I (and our daughter!) enjoy shopping. With a friendly atmosphere, a cafeteria and several children’s play areas, the store keeps everyone in the family happy.

Ikea is essentially a furniture store but a few minutes inside the store are all you need to understand the “differentiation” they’ve managed to bring to that rather staid business. You walk into other stores with an idea of what you want but when you walk into Ikea, you get new ideas. Unlike other stores that separate furniture based on type (sofas in 1 section, bookcases in another and so on), Ikea sets up entire rooms with its furniture in place. So you actually walk into fully furnished rooms. And these rooms are furnished with everything down to wall-hangings, pen holders, clocks and table lamps. So, as the article says, “you end up buying things you never knew you needed but at less than $2 each you load up on them anyway!”

Ikea also differs from other stores in how much it makes you work! In a marketplace where stores compete in making things easier for the customer, Ikea is as close as one can get to a “do-it-yourself” store. You take the measurements, you get the things(usually unfinished) you want from the warehouse, you haul them to the car, you assemble them at home and you paint them to look like you want them to! This might look like a bad thing but I'm guessing that this is what helps them keep costs(and hence, prices) so low.

With this kind of a unique shopping experience, it should come as no surprise that along with the Golden Gate, Crooked Street, the 17-mile drive and other sights the Bay Area has to offer, the Ikea store too has become a must-see for visitors from India!