$40.906 billion (2016)
How they do it: Although IKEA’s core offering is cheaply priced furniture its physical stores offer a lot of other products related to home and living. In addition, IKEA stores usually have both a restaurant as well as a supermarket with Northern European products.
How they do it: IKEA’s products are only available in their physical stores and on their website. The stores are standardized in terms of offering and design. The inventory in the stores, in the catalogue and on the website are identical.
How they do it: IKEA has presents all its inventory on its website. This allows customers to both preview products they want to buy in the store as well as to order them to their home.
How they do it: IKEA’s stores and products are all designed around the theme ”Nordic living”. Products are named with Swedish words and the food offered in the IKEA restaurants and grocery stores is mainly Swedish as well. Hence IKEA products and product names have a high recognition value.
How they do it: IKEA offers products such as shelves and closets that can be customized to individual needs. In stores, IKEA offers ”design assistants” in form of computers which let every customer design the closet to their needs and with different configurations.
How they do it: IKEA offers different product lines for each category, including a basic one, letting customers with a low purchasing power buy furniture in their stores. Products in the self-service area are presented in a simple way comparable to a warehouse.
How they do it: IKEA stores have three main areas, the exihibition area, self-service area, and warehouse. Products from the self-service area are grab and go articles. Larger products and furniture is presented in the exhibition area and numbered. The customer then has to pick-up the individual parts of the furniture according to the numbers in the warehouse area and proceed to the check-out.
How they do it: Based on ”Nordic living”, IKEA offers everything related to home and living as well as groceries. This includes furniture for indoor and outdoor, accessories and food.
Target The Poor
How they do it: IKEA’s products are competitively priced and have a high degree of standardization. This allows also customers with a lower purchasing power to buy at IKEA. In every category there is a budget option as well.