IKEA is a household name for its affordable furniture and home decor, but what makes the company so successful? According to Forbes, IKEA’s revenue was $11-12 billion in 2017. The store’s worldwide customer base spans all ages and socioeconomic backgrounds. Additionally, IKEA offers unique products that can be difficult to find elsewhere. For example, their wall hooks are great for hanging coats or hats near the door.
Key Takeaways
13 Reasons Why IKEA Is So Popular In 2022!
1. The Price Point
IKEA’s low prices and chic furniture are two factors that keep customers coming back. The flat packaging saves on storage and transportation costs, allowing IKEA to continue offering products at a fraction of the cost of competitors.
2. World Famous Food Hall
If you’ve been to the IKEA food hall, you’ll understand how irresistibly cheap their menu is. Not only does the food hall generate over $1.6 billion additional profits, but statistics show that 30% of customers visit IKEA stores with the sole purpose of dining.
The masterplan behind IKEA’s affordable dishes stems from the policy that aims to offer the lowest price meal within a 30-mile radius, even if that means selling at a loss.
Customers satisfied with tasty food are more likely to spend more significant amounts on furniture.
3. Sustainable Products
Building sustainability is high on IKEA’s agenda. You can discover a wide variety of merchandise created with sustainable materials.
For example, kitchen fronts are often made with recycled plastic bottles, while many dining suites are crafted with sustainable wood.
Additionally, IKEA ensures there are plenty of affordable plant-based alternatives available at the food hall. Plates, bowls, and cups are free from cadmium or lead, healthy for both you and the environment.
4. Efficient Packaging
Whether you’re on the move or wish to redecorate, many customers relish the benefits of flat-pack furniture.
IKEA reduces package size by 50%, meaning customers can appreciate the affordable transportation benefits of ready to assemble furniture.
IKEA’s versatile packaging means the furniture is easy to compact and maneuver around your home.
5. Injecting Style Into Storage Units
You may think the idea of a beautiful home clashes with practicality; however, IKEA storage units blend together the concept of style and functionality.
Spruce your home with a variety of statement, custom, or minimalistic styles that can effortlessly organize your belongings.
IKEA’s storage solutions are among the 13 most popular products out of the 10,000 plus items stocked in stores.
6. Inclusion And Equality Ethos
IKEA welcomes those from all walks of life, emphasizing the significance of diversity both as an employee and customer.
The company stands with the LGBT+ community showing support by introducing a rainbow flag version of the iconic FRAKTA and STOROMMA. Total profits generated from these items were donated to LGBT+ initiatives and charities.
Gender equality is also highly supported; IKEA believes everyone should be appreciated for their individual contributions and offers equal opportunities regardless of gender.
7. Online Accessibility
Do not fret if you live a long distance from an IKEA store; the company has introduced digital features which aim to give customers a virtually enjoyable shopping experience.
Download the IKEA App to your Apple or Android smartphone to purchase furniture and view digital showrooms. Alternatively, head over to their main website to browse a wide variety of stock.
In the previous fiscal year, IKEA’s eCommerce sales rose by 60%, with many customers ordering goods straight to their door or attending a super easy click and collect point.
8. Furniture For Pets
Not only is IKEA furniture suitable for humans, but also our furry friends. Customers have the opportunity to pair pet accessories with the aesthetic of their home, with plenty of colors, textures, and patterns to choose from.
To learn more, you can also read IKEA’s policy on allowing pets in-store.
9. Successful Campaigns
IKEA’s admiral modern marketing strategy speaks to customers personally to create an experience rather than hard-selling products.
Social Media sites such as Pinterest, Instagram, Facebook, and Twitter are all used to reach customers.
IKEA utilizes these platforms to post achievable interior design boards to inspire followers to maximize their own space. YouTube is another central platform IKEA operates on by posting useful ‘How To Build’ videos.
Additionally, IKEA thrives from positive word of mouth following customer’s in-store experiences.
10. Desirable Products
Many flock to IKEA to spruce up their home with stylish yet functional furniture for affordable prices. IKEA provides those on a budget with the opportunity to personalize their space with trendy lighting, rugs, bedding, textiles, and houseplants.
Additionally, IKEA provides plenty of insights into making the most of small spaces, which is why the brand is such a hit with students and young people.
11. Eco-Friendly Waste Policies
Striving to create a greener future, IKEA is abolishing single-use plastics throughout the business to solely use reusable plastics by 2030. Customers can purchase merchandise made from recycled glass, plastics, wood, and wool.
To reduce waste, products are becoming more versatile with add and remove elements. VIMLE sofa which can be entirely rearranged, and covers wholly swapped.
IKEA increasingly works with a composite material made from wood fiber waste to build robust and long-lasting furniture. Iconic pieces such as BILLY Bookcases, ODGER Chairs, and RÖDTOPPA Covers are created with composite.
12. 90 Day Price Protection
When you buy a product that goes into a sale for a reduced price within 90 days of your original purchase, IKEA will refund the difference.
We suggest checking the IKEA website for the latest deals if you have recently purchased to save yourself some money.
13. The Perfect Day Out
More than often, IKEA stores are located away from commercial or residential areas meaning customers are more likely to take a day trip.
With over an average of 380,000 square feet of furniture, home accessories, house plants, suites (and still more) to explore, you’re almost guaranteed to find something you desire.
IKEA’s food hall is said to be part of the ultimate experience, with the super cheap signature meatballs creeping into most people’s orders.
To learn more, also see our post on IKEA’s competitive advantages, why IKEA is so cheap, funny IKEA furniture names, if you need a membership for IKEA, and IKEAs price adjustment policy.
Conclusion
IKEA is primarily famous for its blend of stylish yet functional home furnishings sold at affordable prices. Flatpack transportation savings contribute to maintaining low-priced products while improving efficiency for the customer.