Since opening it’s first store in the U.S. 31 years ago, Ikea has grown considerably by offering, cheap but chic furniture pieces that would cut customer’s costs by being assembled at home. But in the face of all this success, the real question is if it’s enough? According to Ikea CEO, Peter Agnefjall, furniture shoppers are interested in pieces that not only keep their pockets full but also offer long term value: “when you buy a sofa table, it needs to be built to last.”
In conversation with Retail Dive, Philip Ryan, associate partner at consulting firm Vivaldi, describes the challenges Ikea may face: “While its functional, minimalist aesthetic is appealing to many people (including, in the past couple of decades, Americans taught by Target that “chic” can be cheap), the poor production values of most Ikea furniture and home goods keep them reserved for extremely budget-minded consumers like college students or young professionals outfitting their first apartment”
“They have so much brand equity, but it’s not very high quality. It’s great design, very functional. It’s almost akin to Zara [fast-fashion] clothing”
To learn more about Ikea’s future plan, click here.