When Was IKEA Started? Unpacking the History of the Flatpack Phenomenon

IKEA was started in 1943 by Ingvar Kamprad in Älmhult, Sweden. From its humble beginnings as a mail-order business selling everything from pens to picture frames, IKEA has blossomed into a global furniture empire, forever changing the way we furnish our homes. But how did this revolution begin, and what were the key milestones in IKEA’s remarkable journey? Let’s dive into the fascinating history of this flatpack phenomenon.

The Early Years: Seeds of an Idea (1943-1950)

Ingvar Kamprad’s Entrepreneurial Spark

The story of IKEA is inextricably linked to the life of its founder, Ingvar Kamprad. Even as a young boy, Ingvar demonstrated an entrepreneurial spirit, selling matches to neighbors from his bicycle. He realized that he could buy matches in bulk at a low price and sell them individually at a profit. This early business acumen would be a hallmark of his career.

In 1943, at the tender age of 17, Ingvar’s father gifted him a small sum of money as a reward for doing well in his studies, despite struggling with dyslexia. With this seed capital, he registered his own business and named it IKEA, an acronym formed from his initials (I.K.) and the first letters of the farm (Elmtaryd) and village (Agunnaryd) where he grew up in Småland, southern Sweden.

From Pens to Furniture: Finding its Niche

Initially, IKEA didn’t sell furniture. The company’s early catalog offered a diverse range of products, including pens, wallets, picture frames, table runners, and even nylon stockings. However, in 1947, furniture was introduced to the IKEA range, initially sourced from local manufacturers. This marked a pivotal moment in the company’s history.

The Flatpack Revolution and Growth (1950-1970)

The Birth of Flatpack Furniture

The shift to flatpack furniture design was driven by a combination of factors. Firstly, a furniture competitor attempted to sabotage IKEA by pressuring suppliers to stop working with them. This forced IKEA to take control of its own supply chain and design process. Secondly, a coworker removing the legs from a table to fit it into a car sparked an idea. Seeing how much easier it was to transport furniture when flat-packed, Kamprad realized that this could be a game-changer, offering significant cost savings on transportation and reducing damage during shipping.

The First IKEA Showroom and Catalog

In 1953, IKEA opened its first showroom in Älmhult, allowing customers to see and experience the furniture before purchasing. This was a crucial step in building trust and establishing the brand. The same year also saw the first proper IKEA catalog, which quickly became a cornerstone of the company’s marketing strategy.

International Expansion Begins

By the 1960s, IKEA had already established a strong presence in Sweden. In 1963, IKEA opened its first store outside Sweden, in Norway. This marked the beginning of the company’s international expansion, which would continue at an astonishing pace in the decades to come.

Global Domination and Legacy (1970-Present)

Expanding Beyond Scandinavia

The 1970s saw IKEA expanding further into Europe, with stores opening in Denmark, Switzerland, Germany, and Austria. The company’s affordable prices, stylish designs, and self-assembly model resonated with customers, propelling its rapid growth. In 1976, Ingvar Kamprad published “A Testament of a Furniture Dealer,” outlining his business philosophy and values, further solidifying IKEA’s unique brand identity.

Reaching New Continents

IKEA continued to expand globally in the 1980s and 1990s, reaching new continents such as North America, Asia, and Australia. This period was characterized by significant adaptations to local markets, reflecting the company’s commitment to understanding and catering to the needs of diverse cultures.

A Legacy of Innovation and Sustainability

Today, IKEA is a global furniture giant with hundreds of stores in dozens of countries. The company continues to innovate in areas such as sustainable materials, energy efficiency, and smart home technology. Despite the inevitable controversies and challenges that come with such a large enterprise, IKEA remains a powerful force in the furniture industry, leaving an undeniable mark on the way we live and shop.

Frequently Asked Questions (FAQs)

1. What does the name IKEA mean?

The name IKEA is an acronym formed from Ingvar Kamprad’s initials (I.K.) and the first letters of the farm (Elmtaryd) and village (Agunnaryd) where he grew up in Småland, southern Sweden.

2. Where was the first IKEA store located?

The first IKEA store was located in Älmhult, Sweden, and opened in 1958. Before that, there was a showroom that opened in 1953.

3. Why did IKEA start using flatpack furniture?

IKEA started using flatpack furniture primarily to reduce transportation costs and minimize damage during shipping. Also to control supply chain. This innovation also allowed customers to transport the furniture themselves, further lowering the overall cost.

4. When did IKEA open its first store outside of Sweden?

IKEA opened its first store outside of Sweden in 1963, in Norway.

5. Who designed the first IKEA flatpack furniture?

While there isn’t a single person credited with designing the first flatpack furniture, Gillis Lundgren, one of IKEA’s earliest employees, is often associated with the initial idea of removing the legs from a table to make it easier to transport.

6. When did IKEA first enter the US market?

IKEA first entered the US market in 1985, with the opening of a store in Plymouth Meeting, Pennsylvania.

7. What is “A Testament of a Furniture Dealer”?

“A Testament of a Furniture Dealer” is a book written by Ingvar Kamprad in 1976, outlining his business philosophy, values, and principles that guided IKEA’s success.

8. How many IKEA stores are there in the world?

As of 2023, there are over 460 IKEA stores in more than 60 markets around the world. The exact number fluctuates as new stores open and some close.

9. Is IKEA a publicly traded company?

No, IKEA is not a publicly traded company. It is owned by a complex corporate structure ultimately controlled by the Stichting INGKA Foundation, a Dutch foundation.

10. What are some of IKEA’s sustainability initiatives?

IKEA is committed to sustainability and has implemented various initiatives, including using sustainable materials, such as recycled wood and cotton, reducing its carbon footprint, investing in renewable energy, and promoting responsible forestry practices.

11. When did Ingvar Kamprad pass away?

Ingvar Kamprad passed away on January 27, 2018, at the age of 91.

12. What is the average size of an IKEA store?

The average size of an IKEA store is around 300,000 square feet (approximately 28,000 square meters), but this can vary depending on the location and market. Some stores can be significantly larger or smaller.