Ingvar Kamprad was a teenager when he managed to succeed and build the world’s biggest furniture company that we now know as Ikea. With this he also succeeded it to revolutionize the way retailers function. Mostly by adopting the new style of flat packing as a way to sell a piece of furniture in pieces. Ikea came ‘alive’ from a simple sale of wallets, picture frames and watches. Now it is a home furnishing empire with 200 shops in 32 countries that still expands the innovation of its products. So, the question is how Ikea has ‘’infected’’ the way we shop? Read ahead to know how Ikea has changed the way we shop.
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How Ikea Has Changed The Way We Shop?
1. Ikea offers reusable bags
Ikea ‘behaves’ in an environmental and sustainable manner by selling plastic bags that can be used again and again, recycling bins where the customers can drop their used batteries, light bulbs, and other packaging. However, Ikea’s sustainable development is moving far beyond the stores. The products are evaluated not only from their price but also for their environmental impact. This means that each phase of the product is firmly evaluated, including the materials that are used in manufacturing the product. These requirements are formulated in the code of Ikea that is also known as IWAY (the Ikea Way). And, in this code about environmental standards Ikea’s intentions on environmental protection can really be ‘felt’ and seen as true.
2. Ikea offers price comparison between products
Ikea offers the possibility of comparison between two similar products with different price. So if a couch or a sofa is priced $300 and it is placed next to a furniture that is quite similar but it costs $200 then the customer is going to be influenced by the “compromise price effect”. And he/she may tend to buy the furniture with low price, believing that he made a good deal. This sale ‘trick’ of price comparison is also used by many retailers and online stores. However, Ikea is the world’s largest furniture company so the popularity and uniqueness of its products creates the intriguing price comparison.
3. Ikea offers prices that are one cent shorter
According to researchers from Colorado buying something that is worth $9.99 instead of $10 can make a window shopper into an actual shopper. In this study the researchers asked the participants to evaluate two pens that were both identical. The pens were both priced differently. One was priced $2 and the other was $3.99. However, 44 % of the participants chose the higher priced pen. This effect is called the left-digit effect. It is actually a pricing technique that has a psychological impact on buying by “odd prices’’, even though the counterparts are significantly of lower prices.
4. Ikea offers you to by a lot of accessories
If you are a mother and you want to buy toys for your kids, then Ikea offers you a container for all the stuff that you are going to buy. It could be a container in a specific size and shape but it will definitely fit in all the toys inside it. These containers or boxes can also be an excellent way to store anything like food ingredients or the lunch leftovers from yesterday. They are visible so you can see everything that is inside and never forget to buy something that you need.
5. Ikea uses ‘open the wallet’ items
The bags of tea lights or candles have a psychological effect to the customers and it makes them to shop more than they think it is enough. Even though these items could appear casual they often include an eye catching cup to go or other attractive pieces of décor. This is the concept of ‘open the wallet’ which is also used by retailers from the USA.
They promote the sale of cheap materials and products in October hoping that the customers will continue to buy these products in November and December. “Ikea’s famous yellow and blue bags are there to entice you to shop more than you need,” says Johan Stenebo, a former Ikea employee and author of “The Truth about Ikea.”
Ikea as a brand creates a unique and valuable shopping experience. In this experience Ikea tries to make the products more innovative and accessible to use, But on the other hand it also tries to save the customer time and money. However, Ikea as the world’s largest retailer company also encourages his employees to treat all the customers with respect, decency or make every customer feel important, valued and special.
The three main principles of Ikea are
- quality in the self-service,
- innovation in selling interesting pieces of furniture and
- creating an unforgettable entertaining experience for its customers.
So, by living under these principles and rules Ikea is definitely changing the way we shop and the way we are going to shop.
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- Molly Edmonds, (2018), How Ikea Works
- Quentin Fottrell, (2018), 10 ways IKEA revolutionized the way we shop
- Cathrine Jansson-Boyd, (2018) The Ikea effect: How Ingvar Kamprad’s company changed the way we shop
- Quentin Fottrell, (2015) 5 ways Ikea persuaded shoppers to spend $33 billion