Tuesday, May 23, 2006

What's so special about IKEA?

My first memory of IKEA is - picking up the catalogue on a pavement in Bombay for 10 bucks and drooling over the pictures. That catalogue was like the Bible for students of interior design.

I never had seen or visited an IKEA store until recently and that first visit was an absolute delight. I am a very hard-to-please shopper. For me to like something – it should be of good quality and certainly follow the VFM (value for money) rule. What started out as an exploratory visit to the store has culminated in a fascination with the brand.

From the time I set foot in that store…it almost felt like Disneyland. One can spend an entire day in that large blue and yellow warehouse which doubles up as their retail outlet. Mock ups of rooms displaying actual merchandise lend a context to the purchase. They make it easy for you to imagine where and how you’d utilize what you buy. Where most furniture stores keep their display merchandise off limits …they actually encourage you to sleep on their beds…sit on their couches...the last time I was there I saw a couple sitting in one of their made-up living rooms, watching the tele. These are small details that create a feel good factor and nudge the customer a little more towards making that final purchase.

I have seen similar outlets in India…and what comes to mind is Style Spa which has to go a long way before their products can become competitive on price…and let’s not even talk about their designs.

What is their strategy then to deliver what has been referred to as ‘Scandinavian Designs at Asian Prices’?

We start by deciding on a price. Then we hand over to our team of designers, product developers and purchasers for them to come up with the goods’ …mentions their 2006 catalogue – which according to an estimate has seen a print run of 160 million copies!

Business week has a very detailed write up on the subject.

To achieve that goal, the company's 12 full-time designers at Almhult, Sweden, along with 80 freelancers, work hand in hand with in-house production teams to identify the appropriate materials and least costly suppliers, a trial-and-error process that can take as long as three years

Innovation does not stop at product development…on their new store opening in the US; they encouraged customers to send e-post cards to acquaintances in return for a price off. Their cult status with consumers only helped their marketing effort. Some other off beat things they have done is – announce a prize of close to 4000$ for their first customer at a given outlet. Die hard IKEA fans have spent sometimes about 3 days in their warehouse, while others camp in caravans outside waiting for the grand store opening – creating the buzz and drawing more into their tribe.

And if you haven’t heard enough from me about their home furnishing, there is one more reason to visit IKEA…their restaurant. While I was reading about this brand – I came across the blog of this couple in Malaysia who asked their 2 year old daughter where she’d like to go for dinner and pat came the reply…IKEA! Maybe they would some day announce a contest to find their youngest fan…

For the more IKEA hungry readers…there is a theme blog started by fans or should i say fanatics !

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4 comments:

  1. Hmmm...interesting read. I love interior designing but not really ventured into it (apart from my home ofcourse!) Maybe when time permits I shall check out!Thanks fr sharing it

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  2. IKEA's absence in India is surprising to me. Their merchandise would sell like hot cakes what with the low prices and the reputation of the brand. They could put many carpenters out of work. Perhaps these skilled men could be co-opted by Ikea to help set up furniture using the detailed instructions. It is not a piece of cake following the instructions to set up their furniture.

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  3. HTBM - you should give it a go...and lets hope you dont get addicted too :)

    AS - India does not have a strong DIY culture. We are usually at the mercy of some tobacco chewing contractor and his boys - to meet our needs for home furnishing. I dont whether co-opting is viable given their model of biz since i think somewhere they cost competitiveness also comes from having as little human involvement in their selling cycle. With labour comes the wages and also the hassle of dealing with human quirks. The furniture is flatpacked which minimizes their shipping costs and also allows consumers to pick up stuff from the warehouse and into their cars so that they dont have to maintain too many sales and delivery staff.

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  4. Came here by chance through Technorati. Yes, we are Ikea fans too. Thanks for linking to my blog.

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