IKEA’s furniture: where are they made?
IKEA furniture is made in different countries all across the world like China, Germany, and Sweden. The company has manufacturing facilities in more than 50 countries, with its sources of raw materials from even more places. IKEA furniture typically is made of wood, metal, plastic, and a combination of all those materials.
IKEA is a popular furniture retailer that consists of about 43 production units in over nine countries. These countries produce IKEA’s popular items, such as chairs, tables, and dressers. IKEA also sources its raw materials from suppliers in these countries, which significantly helps them keep the costs down.
IKEA has been criticized for its past use of cheap labor in developing nations to produce its products. To address these criticisms, the company has taken steps to improve its working conditions at its factories along with ensuring that employees are paid fair wages.
IKEA today is known for manufacturing more items in developed countries like the United States and Sweden although IKEA was forced to shut down its only factory in the US due to it incurring more than desired production costs.
The making of IKEA Furniture
IKEA does not manufacture their furniture. The furniture designs are handled by IKEA designers all of whom reside and work in Sweden. The manufacturing takes place in factories spread across Europe and South East Asia. ..
Ikea uses both in-house development and outsourcing to manufacture its products. They achieve this by signing manufacturing deals with other countries where Ikea develop their products depending on which location has the lowest production cost. ..
The IKEA product line is being assembled at home by interested customers who buy the separate pieces.
China is a favorable location for manufacturing because they have the lowest cost of production. This is why over 50% of IKEA’s products are produced there. The IKEA-owned factories are also stepping up their game and turning out products that fill their shelves. Cost of production is the important thing for this retail furniture giant.
IKEA’s quality of furniture and how it is different from other stores
IKEA furniture is a great option for anyone looking for quality furniture at a fraction of the price. IKEA furniture is known for its durable nature and valid warranties.
IKEA offers a wide variety of furniture for a specific purpose, which is why the furniture is available in such a variety of different styles and colors.
The furniture in IKEA is often used for an extended period of time and might not last as expected. This is why IKEA promotes its products for specific use with the promise that they will last for years if you use them responsibly.
IKEA’s unique approach to furniture design and assembly is what sets it apart from its competitors. The furniture is designed in a way that anyone with no prior knowledge of assembling complex items can put them together into one complete piece of furniture. This gives people a connection to the furniture they build, which is something that other brands cannot offer. ..
How IKEA manages to keep its prices low?
IKEA is a low-cost, obligation-free business model that strives for optimum flexibility and minimal investment cost in serving various customer needs across different geographies. IKEA has always strived to provide its products at the best possible price. ..
IKEA adopted a vertically-integrated supply chain model, which includes self-owned forestry operations, forestry specialists, and direct sourcing from over a thousand suppliers in more than 50 countries. This allows them to maintain low prices across their huge network of stores.
In this past decade, the company abandoned its traditional asset-heavy business model and instead opted for an asset-light approach. This change was made in order to save money and avoid unnecessary investments in inventory and property.
Conclusion
IKEA has a strong hold on millions of the middle class who come under the wider umbrella of the consumer class of people since it contains numerous groups of individuals and families that have a considerable amount of disposable income. Meaning that this is the target audience IKEA generally works toward attracting. The outsourcing and in-house development initiatives, along with the cost-effective and customer-friendly business models are clear indicators of IKEA’s success in the 21st century with its 79 years of humble origins safely in the background. One of IKEA’s famous strategies i.e. the IKEA effect is highly regarded as among many unique strategies that have helped the company in creating a special place in their customer’s minds that very few other companies have been able to replicate giving IKEA a quality advantage over its peers.