The evolution of the social and health situation caus by COVID-19 forc IKEA to temporarily close about 350 of their stores (about 75%) between March and August 2020, yet theirs is one of the companies that has been least affect by this economic crisis; paradoxically, the historical moment and their management have contribut to improving a business model that was already consider excellent.
Try asking them if they have ever
Try asking everyone you know if they have ever heard of IKEA. . purchas from IKEA or if they would recommend it to others. Again, the answer will almost certainly be yes.
Key points of the article:
- Compar to its competitors, IKEA has manag to establish itself on the market by applying psychology to marketing, giving rise to what is call the IKEA Effect.
- From the study of the articles to the layout of the display areas, passing through the bars and restaurants present inside the IKEA stores, everything is taken care of down to the smallest details with a precise objective: to push the customer to purchase.
- The concepts behind the IKEA Effect can be extrapolat and adapt to other business realities, to improve their effectiveness and productivity.
Why has IKEA been and continues to
Be so successful? Why have they not encounter and continue not to encounter particular problems in retaining their customers and expanding their sales network?
It is essential to answer these and other questions regarding what is defin as a real phenomenon, better known as the IKEA Effect.
- How to handle a global pandemic
- according to IKEA
- IKEA numbers in the last year
- The effectiveness of online sales
- How to encourage customers to purchase?
- IKEA sells an experience
- How do you transform the superfluous into the necessary?
- The concept of the functional labyrinth
- Impulsiveness as a guide to purchasing
- How to beat the competition according to IKEA
- Shopping and Satiety: IKEA and Catering
- The Evolution of IKEA Cafés and IKEA Restaurants
- But IKEA didn’t stop there.
- What does the future hold for IKEA Food Services?
- Can the IKEA Effect be repeat?
- Realistic nes and requirements
- Working for customer satisfaction
- Add a personal touch
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How to handle a global pandemic
according to IKEA
Often in this last year we have read of many companies and businesses forc to ruce their business or to completely (or almost completely) cease their activities.
The economic recession we are facing globally is not sparing anyone and the climate of uncertainty that has been creat does not help to clarify doubts and worries about the future.
However, this does not seem to belarus bulk sms service particularly affect IKEA , a leading company in the furniture sector. Why? What is the secret of their success?
According to data updat to 2019, there are currently 433 IKEA stores worldwide with a total of approximately 210,000 employees (Statista).
IKEA numbers in the last year
In terms of in-store shopping, IKEA welcom approximately 825 million customers in fiscal 2020 compar to 1 billion customers in fiscal 2019, with earnings of €39.6 billion compar to €41.3 billion in the previous year.
As report, 2020 has indirectly contribut to changing customer habits themselves .
If previously purchases were of a the ultimate guide to brand salience more “vari” nature, in line with the philosophy that
guides IKEA, in the last year adb directory there has been a significant increase in the sale of
mium-large siz furniture (from “single pieces” such as sofas or wardrobes to “entire rooms” such as kitchens, brooms and bathrooms, purchas “in bulk”).
A primacy compar to the purchase of accessories such as household items (cutlery, glasses, lamps) or in any case mium-small siz furniture (chairs, tables, bside tables).
The main reason is obviously due to the ne to deal daily with the risks pos by Covid-19, which has exponentially limit physical movement
compar to the past.
But we must also consider the change in mentality that this pandemic is helping to create in many IKEA customers.
Today, in 2021, superfluousness and impulsiveness.
The effectiveness of online sales
Especially in the most critical months of the pandemic, specifically between March and April 2020, IKEA also saw an increase in online sales.
Contrary to what one might think, IKEA’s eCommerce branch has never been “decisive” in terms of earnings and profits, in fact until 2019 online sales amount to “just” 10% of total turnover.
In 2020, however, the IKEA website was
Literally overwhelm by their customers (regular and not), counting more than 4 billion visits and increasing online sales by 45% compar to the previous year. Data that, if put into perspective, amount to about 16% of IKEA’s total sales in the 2020 fiscal year alone.
In total, net of taxes and operating expenses incurr, IKEA still clos its 2020 financial statements with a profit of €1,731 million (Source: IKEA).