Ikea Business Plan Best Business Plan Presentation
Stores already take back mattresses, recycling the parts into products like roofing materials and animal bedding.Products that are returned also go back on display in a section of each store.Raw materials, by far, are the largest part of that footprint, so reusing or recycling materials can have a dramatic impact.Customers, too, have become more conscious of the environmental footprint of consumption and are interested in new models in a way that they were not even a few years ago.The traditional way of manufacturing–extracting resources, making products, and selling them to consumers who ultimately put them in landfills–no longer makes sense for the retailer, which recognizes that it faces a squeeze on raw materials as the global population grows and more people want to buy its products.Because Ikea makes affordable products for the mass market, it needs huge volumes of raw materials.
Some products are already beginning to incorporate the new approach–the Vimle sofa, for example, is sold in parts, so if you later need a bigger sofa, you can buy an extra seat rather than replacing the whole thing (even the arms are sold separately, so if a cat destroys one, you can buy another and have a sofa that looks new again).
By next year, if you want to get a chair from Ikea, you might be able to lease it instead of buying it–and when the chair comes back to the company, Ikea will resell it and eventually recycle it.
The furniture giant just announced that it is expanding tests of its furniture rental program, which began in a handful of locations, to 30 countries, including the U. It’s one step in the company’s ambitious vision of becoming circular–so every product it makes is designed to be reused, repaired, upgraded, and recycled–by 2030. “It’s fundamentally about changing the business model and having a completely different offering for our customers,” says Pia Heidenmark Cook, chief sustainability officer for Ingka Group, which operates 367 Ikea stores as the largest of 11 Ikea franchisees.
In short, Ikea is acting more like a tech company than a furniture maker.
“For the majority of people in the world, Ikea isn’t accessible.