The word "legend" is often thrown around, particularly when speaking of the recently deceased. But in rare cases, it is well deserved. Ingvar Kamprad, the founder of IKEA, definitely qualifies as a legend in retail, not just for the way furniture is sold but for his building an enduring culture to create a real rarity: a truly global retail brand.
And while many stories like this would focus on the glories of the past, his business is squarely focused on the future of retail.
I visited my first IKEA outside Plymouth Meeting, Pa., in 1986. It was one of my true retail epiphanies, and I still use IKEA as inspiration when describing what it takes to be a success in retail. More than 30 years later, IKEA still teaches me lessons. How many brands can maintain that kind of relevancy?
Kamprad started IKEA in 1943 when he was just 17, but his breakthrough came in 1956, when the company pioneered the notion of flat-pack, or ready to assemble, furniture. IKEA’s simple but sturdy designs and self-assembly products are now familiar in homes around the globe, making IKEA easily the largest furniture retailer in the world but also one of the very few retail brands that has seemingly crossed every border. Retail titans Walmart, Carrefour and Tesco have not found the path to be nearly as smooth.
IKEA, still privately held, now has around 400 stores, serving roughly 1 billion customers and generating $50 billion in sales a year.
Much of this success can be attributed to the culture that Kamprad built and the values that endure today. At an Ebeltoft Group meeting that was held in October in Copenhagen, our group was fortunate to have Denmark IKEA CEO Dennis Barslev address us. I was struck as much by what he said as by how he behaved. Barslev began, and ended the talk by restating the values that the company lives every day. He was as humble a CEO as you can be—he walked the walk (or biked to work, as people do in Denmark).
These values are a powerful reminder of why IKEA has become a truly successful global brand. As I review each one, I can’t help but reflect on Kamprad’s “manifesto” of retail success:
LEADERSHIP BY EXAMPLE
Our managers act according to IKEA values, create an atmosphere of well-being and expect the same from co-workers.
CONSTANT DESIRE FOR RENEWAL
Adapting to customer needs with innovative solutions contributes to a better everyday life at home.
TOGETHERNESS AND ENTHUSIASM
Together, we have the power to solve seemingly unsolvable problems. We do it all the time.
COST-CONSCIOUSNESS
Low prices are impossible without low costs, so we proudly achieve good results with small resources. Kamprad was a notoriously frugal man
STRIVING TO MEET REALITY
We stay true to practical solutions to develop, improve and make decisions based on reality.
HUMBLENESS AND WILLPOWER
We respect each other, our customers and our suppliers. Using our willpower means we get things done.
DARING TO BE DIFFERENT
We question old solutions and, if we have a better idea, we are willing to change.
ACCEPT AND DELEGATE RESPONSIBILITY
We promote co-workers with potential and stimulate them to surpass their expectations.
SIMPLICITY
We take an easy-going, straightforward approach when solving problems, dealing with people or facing challenges.
CONSTANTLY BEING “ON THE WAY”
We review what's done today and ask what can be done better tomorrow, so we can find new ideas and inspiration.
IKEA is constantly innovating, and a leader in embracing pop-up formats around the world to keep the brand fresh. An ever-changing store in Spain, a pop-up installation in Toronto or a kitchen in Warsaw are all examples of IKEA continually innovating their model.
IKEA introduces several thousand new SKUs a year. And as Dennis shared with us, there are guidelines across the business to ensure consistency but, each country is given independence. Freedom within a framework and the power to be entrepreneurial.
The industry has lost a true retail legend. But, the power of the IKEA culture will ensure the company endures.
