The company that owns the largest retail chain sells furniture and various household goods. IKEA products are especially popular in Europe. It is believed that in the countries of Western Europe, there is not a single house, not a separate apartment, where it would not be possible to find something bought in IKEA. And although it is believed that the furniture of this brand is not too high quality, affordability determines its popularity.
The company was founded in 1943 when a young entrepreneur, Ingvar Kamprad, founded the company IKEA, which sold writing supplies. He was then 17 years old. The company name is an abbreviation, which is decoded as follows: the creator’s initials (Ingvar Kamprad), to which Ingvar added the name of the farm on which he grew up (Elmtaryd), located in Agunnaryd Parish (Agunnaryd) in southern Sweden. That is, IKEA is Ingvar Kamprad Elmtaryd Agunnaryd.
To say that Ingvar was a talented businessman is to say nothing. He amassed a multi-billion dollar fortune, placing him among the world’s wealthiest individuals. With a lot of effort, he managed to promote his business. World War II did not affect Sweden much, which was mostly an ally of both the Third Reich and its opponents. Military operations were somewhere on the sidelines, without interfering with the daily lives of ordinary Swedes.
The range, which the company trades, has been expanding tirelessly. Mainly due to all sorts of little things, like stationery, underwear, and household chemicals. The idea to do furniture came in 1948. And this furniture was supposed to be just inexpensive so that a man in the street with a low income could afford it. Having considered all this, Ingvar agreed with several small manufacturers, who began to produce furniture according to his order. Success came quickly; already in 1951, a businessman acquired a small factory, where he began to build furniture on his own. Then he begins to print his first product catalog.
And then I had to face the first problem. Furniture in those years was not a luxury but an expensive item. By his actions, Ingvar coolly interfered with other Swedish manufacturers. As a result, those managed to persuade the logging companies to stop cooperating with IKEA. Another would have given up. But not Ingvar! After considering the current situation, he began to purchase the necessary components in Poland while also winning at a price. Then the idea was born to maximally simplify the assembly and delivery of furniture, making it a team, like a kind of designer. And although this required some effort on the part of consumers, they were satisfied since it became much more comfortable to deliver the purchase home and its price dropped even further.
By the end of the 1950s, IKEA stores were starting to appear all over the country, in which it was possible not only to buy furniture and other goods but also to drink a cup of coffee. And the prices just pleased the eyes. All the stores were large and were located outside the city—Ingvar “spied” this system from the American trading network Cash & Carry.
By the beginning of the 1960s, Ingvar realizes that his company is ripe for entering the world market. The conquest began first of neighboring Scandinavian countries and then of the whole of Europe.
Today, IKEA is one of the largest retail corporations. Its outlets are located in dozens of countries around the world. It employs hundreds of thousands of people. Product catalogs are published in hundreds of millions of copies in various languages. Prices printed in them traditionally do not change throughout the year, no matter what the circumstances. Many IKEA stores operate on the franchise system.
Ingvar himself is no longer the owner of the empire he created, which has been owned by the Netherlands-based INGKA Holding B.V. since 1982, which is the parent company of the Stichting Ingka Foundation charity (according to the poisonous statement of some journalists and analysts—pseudo-charitable). It is believed that the reason he took this step is too high Swedish taxes. The company is headquartered in the Netherlands province of South Holland (Zuid Holland) in Delft (Delft), a town located near Rotterdam. But in general, the structure of the holding is incredibly complex and confusing; it includes dozens of companies of various kinds from different founders. There is an opinion that such difficulties are specifically created to minimize taxes.
Not only did Ingvar Kamprad become a successful businessman and billionaire, but he also earned a reputation as a thrifty individual who prioritized sales, sourced items at the lowest possible cost and attempted to walk or ride a bicycle whenever possible. He only resorts to using taxis as a last option, and rumor has it that he never leaves a tip.
