Kamprad, Ingvar

▪ 2004

      While the phrase “some assembly required” might fill the average consumer with dread, in 2003 Swedish businessman Ingvar Kamprad had millions of people around the world eagerly reaching for a screwdriver. As founder of the home-furnishing company IKEA Group, he created merchandise that could be packaged flat and later put together by the customer. This innovation allowed Kamprad to lower prices significantly, which, when combined with the company's attractive contemporary designs, transformed IKEA into a global phenomenon. By the early 21st century, IKEA was the world's largest furniture retailer, with stores in some 30 countries and estimated sales of more than $15 billion. In 2003 Forbes magazine named Kamprad one of the richest men in the world, with a net worth of some $13 billion.

      Kamprad was born in 1926 in Småland province in Sweden. He displayed entrepreneurial skills as a boy and began selling matches to neighbours. In 1943, at age 17, he founded IKEA (the name was based on his initials and the first letters of the farm [Elmtaryd] and the village [Agunnaryd] where he grew up). He initially sold such items as picture frames, jewelry, and nylon stockings over the telephone; as the business grew, he started distributing catalogs. In 1948 Kamprad began selling inexpensive furniture, and the new merchandise proved to be so popular that in 1951 IKEA began to offer only home furnishings. Two years later he opened a showroom in Almhult, Swed. IKEA's low prices, however, angered competitors, and they pressured Swedish suppliers to boycott the company. Kamprad responded by having IKEA design its own merchandise and by contracting with foreign businesses for materials.

      In 1956 Kamprad introduced flat furniture to IKEA's inventory, and that proved to be the breakthrough for the company. The new items decreased shipping and labour costs dramatically and allowed customers to transport the merchandise home easily. The compact size of the packaged merchandise also meant that items could be stocked at the sales location instead of being kept in a warehouse, and in 1958 the first IKEA retail outlet opened. IKEA stores followed in Norway (1963), Germany (1974), Australia (1975), France (1981), the U.S. (1985), the U.K. (1987), China (1998), and Russia (2000). The distinctive stores—each one highlighted by a vibrant blue and yellow roof and covering on average 17,280 sq m (186,000 sq ft)—typically had more than 80,000 items in stock and were extremely customer-friendly, featuring children's play areas and Swedish restaurants. In 2000 IKEA began selling merchandise on the Internet. The company was such a phenomenon that by 2003 its catalog had the world's largest annual print run, with more than 130 million copies being produced.

      To show employees his appreciation for IKEA's success, in 1999 Kamprad, who was noted for his folksy manner and work ethic, held the Big Thank You Event, in which the company's profits for one day were equally divided among them.

Amy Tikkanen

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