Wednesday, June 19, 2024

How IKEA Became the World’s Largest Furniture Retailer?

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IKEA is one of the top Swedish online stores that changed the way that millions of families thought about shopping by providing high-quality goods at reasonable costs. This was accomplished via impressive branding, management, and the company’s purpose of “creating a better everyday living for many people.”

It isn’t the story of how Pewdiepie became so popular. IKEA remains innovative in all of its processes. So, What are the marketing strategies that have made IKEA successful, and possibly most tellingly? All you can know on ReviewsBird is a Sweden reviewing platform where people leave honest reviews about stores and businesses.

IKEA achieved ‘clear winner’ status by following its business concept

IKEA is a value-oriented company that sells its products at low prices. Its business concept revolves around “sell value at low price” that is integrated into its business operations including designing, packaging, and distributing. Even its production process involves this business concept at every stage. This retailer has made home furnishing products affordable to people all over the world.

3 psychological effects used by IKEA

Going from the living room section to office supplies, IKEA has made the store truly amazing following psychological effects that drive impulse buying and make people fill their carts with things they may not even need.

Scarcity effect

IKEA used the scarcity effect for the scarce products. It is human nature to want the thing that has limited availability and their brain makes them think “When will this product be restocked?”, “Will this product come again?”, and many other questions come to mind. This forces people to put that product in the cart. Moreover, the design of the store is a one-way system that makes people walk the whole store to come back to the product they felt they need it.

Endowment effect

The endowment effect implies the psychology of humans in making emotional bonds with the product they see. The interior design of each section is in the way that people make pre-memories with the product and wish to have the product in their house with the same design or slightly different. IKEA has made it to make sales at a double rate in which they are successful.

Priming effect

This effect implies an unconscious connection of the mind with anything that indirectly affects the decisions of people. IKEA has successfully used this prime effect through their restaurant. Most of the people come to the store just to eat and they have to walk through the whole store to reach the restaurant. After eating, their unconscious connection (happiness, object, touch, or anything) activates the decision-making just within the store. People then walk out with a purchase from the store.

“Open the wallet” section

This section is consisted of the cheap items that are placed in bulk. These items are valuable and aren’t the miss-it-and-move things. These items are trash cans, home accessories, plastic chairs, and anything cheap. They have placed everything under $5 which people purchase.

Conclusion

IKEA’s core competency has always been its ability to perceive things from the perspective of the client, which may seem obvious but is something that many others sometimes underestimate.