Friday, December 2, 2011

Learning Lessons From the Ikea Success Story


!±8± Learning Lessons From the Ikea Success Story

When I first shopped at IKEA to be honest I didn't like it. I didn't understand it, writing down a list of components, hunting for furniture pieces in a huge warehouse - it all seemed too difficult. However IKEA is addictive - you start off buying some of the small cheap knick knacks around the store and soon you find you kitting out whole rooms with IKEA products. Eventually you get the idea of how is all works and are running down aisles getting you chosen legs for a bed, grabbing 38c to go with 27f.

So why is Ikea successful in the difficult retail market?

1) Their staff appears happier.

I know that is a very subjective comment, but many retail store you go to the staff seem unhappy and unwilling to help the customer. Either that or its staffed by teenagers who seem to have trouble buying pants that fit, let alone giving your reasonable retail service. I haven't found this to be the case at IKEA, they seem to employ "adult" employees. I think this is due to their hiring process and ongoing training. I had the opportunity to help spend a half day training IKEA staff in safety in a high threat situation - I don't know of many other retail stores that go to that trouble. They also provide a cheap breakfast not just for their customers but for their staff as well - result - the staff is always at work early - because its cheaper to eat at work than home. Now that's clever management of human resources.

2) They took a basic money saving concept and ran with it

IKEA flat packs everything. Whatever they can't flat pack they stack. The advantages of this is lower transport costs and they say the saving is passed onto the consumer. As a buyer in a small Toyota Corolla carthe advantage is I can buy lot of furniture and still manage to get it home. This has the one disadvantage that you have assemble everything yourself, but its not that hard to do and I kind of enjoy the experience with the satisfaction of "making" something yourself. Space saving just doesn't stop at the store - the IKEA idea is space saving throughout the house - in fact its one of the main selling points of their products - how they can save space around the house.

3) The stores are very well presented.

Not only are the stores HUGE, they are well presented with interior design ideas and concepts for every room in the house. You have a picture right in front of you of how the kitchen will look and the total cost to get your own room laid out that way. I find the stores are clean and follow a logical pattern.

4) The stores are family friendly.

With the family under greater attack than ever before it is nice to come across a retailer going against the trend. Not only do the have a playground for kids, they are also happy for your children to go throughout the store with you. The children's section is huge with great ideas for laying out a children's room, soft toys and even miniature steel cooking set for children. My children jump all over beds and try to load the trolley up with toys. Want a cheap meal - in the middle of their shop they have a family restaurant with CHEAP food. People keep coming back just to get a feed, and its very difficult to walk through the whole store without coming across something you just have to pick up and buy.

5) The are a range of pricing options.

IKEA claims to be very cheap. In truth they have a range of price options. Normally in any range - e.g. bedroom they have a range of goods from very cheap - through to top of the line. I got two cheap but good beds, but I had to be careful in my selection and option choices. This is because most furniture are a combination of packs to make the final product - so your got to be careful with which packs you choose - for example with a bed you can choose basic slats all the way to very expensive slats - what you choose will effect the final total cost of your product.

My only problem with IKEA is that they don't have enough stores!


Learning Lessons From the Ikea Success Story

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