·Everyone
needs furniture and IKEA found a way to produce this stuff in a way that's
affordable to customers and can be scaled globally.
·Flat pack
furniture ships with great efficiency and its cost to produce relative to real
wood is much lower.
·The trade-off,
is that the customer must assemble it somehow, which they enjoy. And people
trade convenience for affordability all the time.
·They're
also combining affordability with pleasing design. Cheap and nice is rare and this
creates excitement and enthusiasm, which drives sales.
·Their ads
are unconventional, they frequently feature people from LGBTQ community and it
appeals to them.
·IKEA is
an elaborate combination of shell corporations, non-profits, licensees,
licensors and other clever dodges to escape taxations.
·Except
for little things like foodstuffs, they design the products, manufacture most
of them, handle distribution and do the retail, a classic example of vertical
integration.
·They keep
the bulk of their margins, and don’t split the pie with different brands or
distributors, like other distributors and retailers.
No comments:
Post a Comment