Successful Tips Business Owners Should Learn From IKEA

The history of IKEA goes back more than 60 years. IKEA’s founding father, Ingvar Kamprad, is worth $ 78.1 billion today. Even though he is so wealthy, it is rumored that he still buys second-hand clothes, which may be true since he grew up in poverty. However, it has developed a way to display and display products that provide a better consumer experience. IKEA reportedly has a technique for selling its products, services and goods in a way that offers the consumer a great experience, and this is a method that other companies should implement when incorporating this into their sales plans. Business owners will increase their income by following these tips. The additional revenue generated is the result of a “secondary effort with additional revenue generated” as it opens up more growth opportunities. The Wal-Mart and Target stores are examples of this strategy in the ROI of companies. In their food markets, they sell their own brand-name foods.

How does IKEA create a unique consumer experience?

Diversification is key to the future of any business. Increasing the profitability of a company is part of the future of any business. In other words, the profitability is in the diversification of the business. In the case of IKEA, many people go to eat at its stores. At least 30% of consumers who go to an IKEA store are there to experience that eating is something that fits well with shopping. When shopping for furniture, appliances or basic household items, taking breaks in department stores is good for our physical and mental stamina. It also helps you experience using the shiny new refrigerator or bedroom set you’ll be buying soon while taking note of some other items in the store.

This is the reasoning behind why shopping for home furnishings and dining out were combined at IDEA stores. And it was confirmed by the positive reactions of 650 million people in 48 countries a few years ago. In fact, this concept inspired “pop up” restaurants in Europe; including London, Paris and Oslo. This trend of eating at home furnishings stores is unique and provides an ultra-consumer experience for anyone who wants to shop and eat all in one place.

Initially, this type of shopping experience proved effective when it started in Sweden, where the store owner originally started his home furnishings and appliance stores. When you combine the purchase of furniture and appliances with homemade food, you achieve the IKEA experience. IKEA included Swedish food for its customers to enjoy alongside their shopping experience. The menu includes potatoes with Swedish meatballs and cream sauce. It also includes jam (cranberry), for those who like sweets and desserts for customers.

How does IKEA display its products?

IKEA displays its products strategically. The IKEA firm pays close attention to price control and product display details over the years. This is how IKEA displays its products using its successful designs, which is the key to the success of the company.

IKEA stores are colored in the national colors of Sweden: blue and yellow. They also have some windows. Each store displays its products in a counterclockwise design, which is what the billion-dollar company calls “the long and natural way,” which is designed to guide consumers to see the entire shop. All IKEA managers display their products according to this design.

When consumers pass an IKEA store, they first pass the furniture showrooms. The next area has shopping carts for small items, before walking through the open “Market Hall” shelf. Then, there is the furniture warehouse, which is a showroom of furniture packaged in boxes or “flat pack” formats. In other words, customers have an easy “self-service” place to shop. Customers are instructed to get the products on site and pay at the register, just as Home Depot and Lowe’s have done today. Most “on sale at a discount” items are on the back or bottom of this design in a counterclockwise direction. These consist of damaged or returned products, and older display items that are now for sale.

Why does IKEA put low-priced products on every corner?

When people turn corners at grocery stores or markets, they will usually look up and down at those corners and usually stop. Since most shoppers have baskets, they tend to leave those baskets in those corners or “hot spots.” A hands-free customer can walk down a grocery aisle without their baskets because they can leave them at the end of the aisle as it is part of the system. It is these fundamental corners that are ideal for low-priced products. Before traveling the entire food lane, customers stop, look, and spend more time in these hot spots than anywhere else.

Why does IKEA sometimes sell dreams and not products?

Selling a dream is basically selling the idea of ​​how to market your products. Once you do this and move on, everything else will fall into place. Therefore, it is true that IKEA sells, sometimes, a dream. Looking at it from another perspective, showing the kitchen of your dreams or the living room or bedroom of your dreams is to implement the IKEA method in your showrooms. After purchasing home furnishings, it is the consumer who has to assemble the product at home through self-assembly.

Why are some products not available, but the screen will show the products on the site?

In fact, it is the tutorials, the products on display and the rooms on display that are unique and allow that “dream” to come true for IKEA customers. If the product is not available in the warehouse or store, then the method you would have to resort to is to go online. The order will be shipped from the main Swedish warehouse to the customer’s address or door, where the customer needs to assemble all the things. The dream is the plan to assemble the home furniture. Perfecting the design for the consumer and, if necessary, experts help with videos and the necessary tools to do so.

Why does IKEA sell the same product but with a variety of prices (ie dining room, bedroom, living room …)?

When there is a product for sale, such as a beautifully displayed dining table near a displayed kitchen, there are also a variety of prices. That is fine for the client because what is undesirable may be for someone else. It is an amazing success. Some consumers may only want the stove, but not the products in and around the entire display of other products. Therefore, placing products with a price range is common in IKEA stores. Consequently, a customer will find something to buy among the entire product display or showcase, even if it is just one item. A price range occurs when you don’t buy 2 for $ 1.00, but only want one, for which you will have to pay 59 cents. So you pay a little more if you don’t buy two of one item. This is also the bulk pricing method that is common in large markets as Sam’s Club has done in the past.

Why does IKEA put unsaleable items next to hot items?

If you see a hot item, then the items surrounding it are primarily for “looks.” So when you see that the items are there with that huge cabinet set you like, but the dishes in them are not for sale, then it is just another way to display successfully. The purpose is that you more easily imagine your dishes in those IKEA cabinets instead of theirs.

Finally, when the founder founded this company, he probably never thought that he would grow and help so many companies if they followed his example.