The IKEA Phenomenon: Unraveling the Strategies Behind Global Retail Success
- GRC Insight
- Jun 11
- 1 min read
What is IKEA?
IKEA is a furniture company that stands out from traditional furniture retailers due to its unique business model.
It encourages customers to assemble their own furniture, setting it apart from competitors that offer preassembled products
Unique Store Layout
IKEA's stores feature a winding maze-like layout with various room setups, designed to engage customers and encourage them to explore the displays.
The "IKEA Effect"
The "IKEA Effect" is a psychological phenomenon where customers value products more when they assemble them themselves. This effect influences consumer behavior.
IKEA's commitment to affordable prices is a major factor in its success, attracting a diverse customer base.
Ikea's innovation includes flat packing, reducing shipping costs. They follow the democratic design philosophy, considering price, form, function, aesthetics, and sustainability in product design.
