Story behind IKEA World furniture retailer?
IKEA is started by Ingvar Kamprad biography, a Swedish entrepreneur, billionaire and was considered one of the richest men in the world. He is the founder of IKEA in the year 1943, a network of furniture stores with affordable prices. Ingvar Kamprad always wanted people around the world to be able to buy beautiful furniture and home furnishings, at an affordable cost, and this desire became his mission.
The company is known for its modernist designs for various types of appliances and furniture, and its interior design work is often associated with an eco-friendly simplicity.In addition, the firm is known for its attention to cost control, operational details, and continuous product development, corporate attributes that allowed IKEA to lower its prices by an average of two to three percent over the decade to 2010 during a period of global expansion. The IKEA group has a complex corporate structure, which members of the European Parliament have alleged was designed to avoid over €1 billion in tax payments over the 2009-2014 period. It is controlled by several foundations based in the Netherlands, and Liechtenstein.
About the founder Ingvar Kamprad
Ingvar Feodor Kamprad was born on March 30, 1926, in a small province Smalandiya in Pjätteryd (now part of Älmhult Municipality), Southern Sweden. Kamprad’s biographers believe that the trading hobby was passed to Ingvar by inheritance. In 1897, the company, which belonged to the grandfather of the future billionaire was on the verge of bankruptcy. His grandfather could not pay the mortgage and committed suicide. However, the Ingvar’s grandmother managed to save the business. So she taught her grandson to bridge over the difficulties with willpower and perseverance. Ingvar’s grandmother Francis had a huge positive impact not only on him but the entire family. She was a very intelligent woman, although a simple origin though.
People who closely worked with Ingvar Kamprad said that he was a brilliant marketer, wise man who never made mistakes. Indeed, the strategy of Kamprad is studied and examined by major entrepreneurs from around the world. Ingvar used to say about himself artfully that he was a dropout. Moreover, this is true as he never attended a university (school teachers could not teach him to read for a long time). The lack of a university degree Kamprad always replaced with enthusiasm. Once he remarked: “If you work and do not feel incorrigible enthusiasm, consider that at least a third of your life has gone down the drain.”
First bargains young Kamprad made in childhood. He bought pencils and matches in bulk, which he then resold to classmates for a profit. During the study, Ingvar managed to try a variety of activities: from fish to Christmas cards trading. That was the real school of life. He was neither trained to do the business, nor he read books on this subject. However, what we know exactly today is that the IKEA company that came through thanks to the personal experience and care of the founder.
“In the field of business, I guess I was a little different from the others, as I has started to show business activity very early. My aunt helped me to buy the first one hundred boxes of matches on the sale of so-called “88 Øre” in Stockholm. The whole package was worth 88 øre, and the aunt did not even make me pay for postage costs. After that I sold a box of matches at a price of 2 or 3 øre and some of 5 øre. I still remember the pleasant sensation experienced by receiving my first profit. At the time, I was no more than five years.”
History of IKEA
In 1943, when he was 17 years, he added some money to the accumulated capital and opened his IKEA. He borrowed the money from his father who was convinced that he was giving money for Ingvars’ studies.The name IKEA is derived from Kamprad’s initials (I.K.) plus the first letters of Elmtaryd and Agunnaryd, the farm and village where he grew up.
At the beginning of its operation, the young Kamprad engaged in the trade of different things (from matches to discount stockings). However, the biggest demand was for pen. At the beginning of the 1940s, they were a novelty even in Sweden. Kamprad ordered 500 pens from Paris, taking a loan of 500 SEK in a district bank (at the time around 63 USD). According to Kamprad, this was the first and the last loan that he had taken in his life.
To attract prospective customers to the presentation of the store, the young entrepreneur promised a free cup of coffee and a bun to everyone who would come. Imagine his surprise when this modest event attracted more than a thousand people! The first presentation of the day was about to become the last one. Nevertheless, everyone got a cup of coffee and a bun. The idea of opening a fast food restaurant in each store looked great for the owner of IKEA. The time was passing by, and each IKEA store got a fast food restaurant.
Further history of IKEA cannot be called cloudless as there are many competitors such as Argos (Italy), Ilva (Denmark) and others. But Ingvar Kamprad knows that his stores offer customers everything essential where they can get visual and tactile sensations and the real pleasure of being there. Ingvar Kamprad net worth was $3.8 Billion as of November 2014. The current IKEA Group’s President and CEO is Peter Agnefjäll, who was assigned to this position on September 01, 2013, and who gained deep and broad knowledge, experience from IKEA.
The lagent Ingvar Kamprad died in his sleep on January 27, 2018. The cause of death was natural causes. He aged 91.