IKEA is Thriving in the “Retail Graveyard”

This Swedish powerhouse really needs no introduction, with genius branding and advertising, they know exactly who they are, and so does the rest of the world. It was the brainchild of 17-year-old Ingvar Kamprad in 1943 but has been named on Forbes’ World’s Most Valuable Brand list in May 2019. So how is this flat-pack furniture brand still ruling the retail industry and staying so relevant? The secret is staying ahead of the market in not only trends, but technology. Every furniture seller should be taking a leaf out of their infamous catalogue to share some of the success. And here’s how. In April 2018, the retail giant realised that it was facing a problem: it hadn’t been keeping up with the digital world and this sparked a shift in their business development strategy. Although IKEA has been ahead of other furniture companies, technology had been globally advancing, leaving many retailers behind. They started by investing in “personalisation at scale” allowing it to send precisely-targeted communications to people based on what they are doing online. “When people buy a bed, they actually spend two weeks researching online. There is a lot of information that we gather so that we can actually be relevant to the person wanting to buy a bed in those two weeks”. - Barbara Martin Coppola, IKEA’s Chief Digital Officer, talking to CNBC. The key to this strategy shift was the incorporation of CGI on a large scale. The Swedish furniture company has been aggressively ramping up its use of computer generated imagery in their catalogues, starting in 2006 with their first CGI photo of a Bertil pinewood chair. By 2012, the Wall Street Journel reported that 25% of their products were computer generated. And with its rapid globalisation, with products reaching multiple cultures CGI and 3D rendering is invaluable. The newest addition to IKEA’s futureproof strategy is the Place app. Allowing customers to place IKEA furniture into their own home, digitally, before purchase. It automatically scales products – based on room dimensions – with 98 per cent accuracy. Customers can see the texture of the fabric, as well as how light and shadows are rendered on furnishings. The secret to IKEA’s success? Always being one step ahead. Especially in technology. With retail ever struggling, a business strategy that constantly stays ahead of technology and is digitally driven will drive sales and success. And what is the first step to the forefront? 3D rendering and digital marketing. It all started with the humble furniture visualisation. Once a company’s products are rendered, it opens a world of possibilities that are then ready-made. To talk about how your products can be digitalised, get in touch with us today.