IKEA ITALIA Retail s.r.l.

IKEA ITALIA Retail s.r.l.
IKEA was founded in 1943, in the South of Sweden, by Ingvar Kamprad. When Ingvar
was 17, his father gave him some money as a prize for the commitment he put into his
studies and he used this money to start his business. The name IKEA is the acronym of
his initials (I.K.) and of Elmtaryd and Agunnaryd, the farm and the village where Kamprad
grew up. IKEA initially sold pens, wallets, frames, watches, jewellery, and nylon
stockings… different things that people needed and which Ingvar managed to get hold of
at a discount. Furniture was introduced in 1953 and the first shop was opened in 1958, in
Almhult.
THE MARKETING IDEA
“To offer a vast assortment of good-looking functional furnishing items at a price
that is so advantageous that many people can buy them.” Furniture and furnishings
with meticulous design are usually created for a limited number of people: the few that can
afford them. From the start, the IKEA approach was different. It decided to take the side of
the majority.
The IKEA marketing idea is based on a partnership with the customer. We do our part. Our
designers work with the manufacturers to find intelligent solutions, and to create furniture
using existing manufacturing processes. Our purchasing offices look for outstanding
suppliers and suitable raw materials all over the world. And we buy enormous quantities of
goods in all parts of the world, so we can obtain the best contracts and guarantee our
customers the lowest prices.
The customer also plays his part. By using the IKEA catalogue and visiting the store, he
chooses the furniture, collects it at the Self-service area or at the Goods Collection centre.
Most products are wrapped in flat packs so that the customer can take them home easily
and assemble them on his own. This means he is not spending money for something he
can do himself. So we all save money and help to build a better life.
THE IKEA GROUP
The IKEA Group is part of the Stichting INGKA Foundation, which is based in Holland. The
Foundation is owned by INGKA Holding B.V., the parent company of all the companies in
the IKEA Group: from the Swedwood Industrial Group to the sales structures, which own
the IKEA stores in the various countries. Inter IKEA Systems B.V. owns the IKEA concept
and trademark, and holds franchising contracts with all the IKEA stores around the world,
most of which are part of the IKEA Group.
IKEA AROUND THE WORLD
Euro 14.8 billion of sales in 2005 (9.04-8.05): +16% on 2004.
The first 4 countries in terms of sales: Germany 19%, UK 11%, USA 11%, France 9%.
The first 4 countries in terms of purchases: China 18%, Poland 12%, Sweden 9%,
Italy 7%.
76,000 collaborators in 43 countries.
235 stores in 33 countries/states, 27 of which under franchises.
410 million people who visited an IKEA shop somewhere in the world in 2003.
160 million catalogues, printed in 52 editions and 25 languages.
IKEA IN ITALY
IKEA opened its first store in Italy in 1989 in Cinisello Balsamo, a suburb to the North of
Milan. IKEA now has 11 stores in Italy (2 in Milan and Rome, 1 each in Turin, Brescia,
Bologna, Genoa, Florence, Naples and Padova) and employs a workforce of over 5,000.
In the last year, the IKEA shops in Italy have welcomed over 25,000,000 visitors.
In 2006 a store will be opening in Ancona, followed by one in Bari in the Spring of 2007; at
the same time, the store in Corsico, outside Milan, is expanding, and the logistics platform
of Piacenza is being doubled.
IKEA Italia closed the 2004-05 operating year with sales of Euro 883 million. This means
an increase of 23.7% on the previous year, and of 27.7% in sales volumes.
THE NEW PRICE POLICY
This double achievement is due to the fact that during the current operating year (2005-06)
IKEA has implemented significant measures in favour of the consumer, reducing the
prices in its catalogue by an average 5.3%.
For the eighth successive year, IKEA Italia has reduced its prices on the previous year.
This investment in price reductions has cost the company Euro 57 million, and has
regarded about 25% of the products. The three most important areas where reductions
have been introduced are: kitchen accessories (-9.7%), kitchens (-8.4%), bedrooms and
bathrooms (-5.9%).
PURCHASES IN ITALY
Italy is IKEA’s 4th most important supplier of furniture and furnishings, right behind
China, Poland and Sweden. IKEA buys more than it sells in Italy: in fact 7.2% of worldwide
purchases by the IKEA Group are from Italy, while the Italian market accounts for 5.5% of
total IKEA sales throughout the world.