Page 76 - DNBI_A01.QXD

532 : APPLYING CREATIVITY TO THE IDEA DEVELOPMENT PROCESS

Mdemands. Close associations between suppliers and retailers meant that
the Swedish furniture market operated as a cartel.

Kamprad was quick to identify the potential of the market, driven by the
increasing post-war prosperity; the erosion of the Swedish tradition of
handing down custom-made furniture from generation to generation;
the emergence of young house-owners seeking new but economical
furniture to furnish their first homes; the impact on shopping habits of
the wider availability of the car; and the post-war baby boom.

Kamprad’s awareness of the post-war social issues, together with the
cartel operating in his chosen market, led to his vision for IKEA extending
beyond mere furniture – it was more of a quasi-philosophical mission to
improve the lot of the masses by ‘siding with the many’. The published
company vision is explicit in asking ‘the customer to work as a partner . . .
so together we can create a better everyday life for everyone’.

The Swedish retail cartel was united in escalating its efforts to prevent
IKEA penetrating the market. From stopping IKEA selling direct to
customers at the annual trade fair, the retail cartel moved to exerting
pressure on the manufacturers not to sell to IKEA. The boycott by
suppliers forced IKEA to develop its own furniture and to establish its
own manufacturing and distribution networks. IKEA’s first furniture
showroom was opened in 1953, with the first IKEA store opening in 1958.

Folklore has it that the flat-pack concept arose in 1955 through chance,
when an employee removed the legs from a table to allow it to fit into his
car.

The flagship IKEA store which opened in Stockholm in 1965
incorporated a number of defining product/service IKEA elements,
including out-of-city location with ample parking space. The Stockholm
store did not initially include a self-service warehouse – it was the
manager’s attempts to cope with over-crowding at the opening which led
him to allow the customers to collect their products from the
warehouse. This creative and simple reaction became a core element of
the design of subsequent IKEA stores.

The core IKEA offering comprised a wide range of well-designed
products offered at an economical price. Low-cost sourcing was
therefore a particularly important requirement. Good relations were
forged with low-cost Polish manufacturers in the 1950s and 1960s.