So far, Ikea kept the business for itself. The annual catalog, website, and occasional visit to its generous stores were the only ways to experience the iconic Swedish products. However, the company changed its mind. Ikea furniture will soon be available on online retailers as well. The public will also get to visit smaller Ikea stores in the city, navigate a revamped online ordering system, and access pick-up points.
Amazon and Alibaba Will Likely Be the New Ikea Furniture Vendors
Inter IKEA chief executive Torbjörn Lööf perceives the online transition as a stepping stone for his company. According to him, this is the very first business mutation consumers will experience since the creation of IKEA. This is why the primary focus in this new chapter will be to preserve the identity of the brand even on third-party territory.
“Traditionally the whole IKEA value chain has been designed to deliver to stores. That is changing and it is challenging a number of ways of doing business.”
While the main business will remain focused on outskirt warehouses where customers come to pick up their furniture pieces, Ikea intends to experiment on secondary plans as well.
Therefore, the company will push to become accessible in other digital and physical ways. While their identities weren’t yet disclosed, Amazon and Alibaba are the two potential main vendors that will start retailing Ikea furniture.
The Upcoming Urban Stores Will Take Advantage of Virtual Reality to Better Immerse the Public in the Ikea World
The company reported significant growth through this fiscal year. Documents showed total sales of $44.9 billion at a worldwide level for the quarter which ended in August. By comparison, same period last year recorded $42.87 billion of profit.
The income boost provided an excellent opportunity for business development. At the moment, the company is divided in two. IKEA Group consists of a network of businesses that tackle retail operations, including food retail and shopping centers. Inter IKEA is the brand owner that takes care of the supply chain as well as design.
Therefore, IKEA Group is going to indulge consumer’s latest preferences for home delivery and online shopping. Lööf claimed that the company is currently experimenting with new store formats of modest sizes.
However, this limited physical space makes room for tech innovation. The manufacturer is going to employ virtual reality to showcase Ikea furniture.
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