Going forward the IKEA Concept and product range is being developed to create an IKEA of the future that is more sustainable, accessible and affordable to the many people.
“Society is continuously developing. We see how technology and urbanisation are strongly influencing consumer behaviours and how their expectations on businesses are changing. We want people to be able to interact with and experience IKEA when, where and how they want, and to have access to home furnishing products with long-lasting value at even lower prices,” says Torbjörn Lööf, CEO of Inter IKEA Group.
One example of better accessibility is the past year’s exiting new development in digital technology. The recently launched IKEA Place augmented reality (AR) app lets you virtually place furniture in your home. IKEA is one of the first home furnishing brands in the world to bring AR technology to the global retail market. This will change the way people get inspired, plan and in the future purchase home furnishing products.
IKEA wants to create a positive impact for people, society and the planet. Five equally important dimensions are combined in the product development: form, function, quality, sustainability and a low price.
“One of our biggest ambitions for the future is to transform IKEA into a circular business. Recently, the first IKEA kitchen fronts made from recycled wood and recycled plastic were launched. Today, customers can purchase LED bulbs at historically low prices. RYET LED bulb was introduced in most markets at a price of around one euro, enabling more people to save energy and money. Thanks to the fact that the IKEA product range only offer LED lighting IKEA customers have been able to contribute to an estimated annual energy reduction of 3.3 billion kWh, which is equivalent to the yearly consumption of more than 200,000 households. We strongly believe that sustainability and good design should not be a luxury that only a few can afford,” says Torbjörn Lööf.
In FY18, 22 new IKEA stores are planned, which includes new markets in India and Latvia, as well as continued roll out of new formats and expanded e-commerce activities. Long term, we continue to explore new ways to meet customers in existing and potential new markets with a focus on South East Asia and South America.
The IKEA financial year runs from 1 September to 31 August. Total IKEA retail sales includes the sale of services to IKEA customers.