Ikea is one of the world’s largest furniture retailers and claims that the design, manufacturing and sales of its merchandise accounts for 2.7 million jobs worldwide.  Customers love shopping through the Ikea aisles sorting through the over 9,000 options available.  The problem for some shoppers, however, is that they can’t find truly unique products at Ikea.

A niche group of startups is trying to create offerings for customers to make their Ikea purchases special and different from other customers.  Some of the offerings include a $989 slipcover for Ikea’s popular Ektorp sofa.  Other offerings include $17 screw-on feet for Ikea’s winged chairs.  Some are calling this the Ikea economy and comparing it to the ecosystem of merchandise like specialized docks, headphones, and apps for Apple products.  Ikea releases 2,000 products per year, providing plenty of opportunity for growth.

Companies like Bemz sell coverings for Ikea’s couches, chairs, and beds in over 35 countries.  Bemz’s goal is to offer individualized, unique merchandise for mass-market products.  Bemz’s revenue in 2013 was around $8 million U.S. dollars. In Sweden, Prettypegs makes legs for Ikea furniture and Superfront sells facings and tops for Ikea cabinets.  Mykea, based in Amsterdam, offers customers stickers that help customize Ikea furniture.  And in Melbourne, Comfort Works manufactures slipcovers for Ikea sofas and chairs.  According to the co-founder of Superfront, “this is an industry that will grow.”

Some customers are using these services to change the look of their rooms and furniture by season, arguing that changing out slipcovers or stickers is cheaper than buying new furniture.

Discussion Questions:

What are some retailers doing to cash in on Ikea’s success?

Why are these firms successful?

 

Source: Katarina Gustafsson, Bloomberg, February 18, 2014