I'm at Ikea today.
I'm at Ikea today.

Of course, we're gonna shop around.
Of course, we're gonna shop around.

Ikea. Ikea. Ikea, Ikea store.
Ikea. Ikea. Ikea, Ikea store.

I love Ikea. I've been shopping online, this
I love Ikea. I've been shopping online, this

morning. I buy a lot of things from Ikea.
morning. I buy a lot of things from Ikea.

Yesterday. I love the princess cake.
Yesterday. I love the princess cake.

While I was in Miami on vacation last week.
While I was in Miami on vacation last week.

The Malm collection, of course.
The Malm collection, of course.

And these at Ikea are $5.99.
And these at Ikea are $5.99.

It was such a great price, I actually grabbed a
It was such a great price, I actually grabbed a

second one. The Besta cabinet.
second one. The Besta cabinet.

I don't think addicted, but if I had a bigger
I don't think addicted, but if I had a bigger

allowance to shop there, probably.
allowance to shop there, probably.

Welcome to Ikea. The only place in the world
Welcome to Ikea. The only place in the world

where you can snack on Swedish meatballs while
where you can snack on Swedish meatballs while

you shop for your new Poäng chair or Färgrik mug.
you shop for your new Poäng chair or Färgrik mug.

Ikea has 433 stores in 53 countries.
Ikea has 433 stores in 53 countries.

Three hundred sixty-seven of them are owned and
Three hundred sixty-seven of them are owned and

operated by Ingka Group.
operated by Ingka Group.

Despite serious product recalls and food court
Despite serious product recalls and food court

scandals, Ikea is going strong.
scandals, Ikea is going strong.

There is something about the uniqueness with the
There is something about the uniqueness with the

yellow and blue and the meatballs and the long
yellow and blue and the meatballs and the long

way through the stores and maybe the twinkle in
way through the stores and maybe the twinkle in

the eye as well. That makes us just a little bit
the eye as well. That makes us just a little bit

more human than others.
more human than others.

But that's just speculation.
But that's just speculation.

Ikea's combined global and online presence is
Ikea's combined global and online presence is

massive. It brought in $45 billion in retail
massive. It brought in $45 billion in retail

sales, had 1 billion store visits and 2.8
sales, had 1 billion store visits and 2.8

billion online visits in 2019.
billion online visits in 2019.

Its closest competitor in the home furnishing
Its closest competitor in the home furnishing

space, Bed, Bath & Beyond, brought in $12 billion
space, Bed, Bath & Beyond, brought in $12 billion

in 2018 in in-store sales.
in 2018 in in-store sales.

Before the massive blue and yellow warehouses,
Before the massive blue and yellow warehouses,

there was a young Swedish man with a simple idea.
there was a young Swedish man with a simple idea.

"Why are beautiful products only made for a few
"Why are beautiful products only made for a few

buyers? It must be possible to offer good design
buyers? It must be possible to offer good design

and function at low prices."
and function at low prices."

Ikea was founded in 1943 by 17-year-old Ingvar
Ikea was founded in 1943 by 17-year-old Ingvar

Kamprad at Elmtaryd farm in Agunnaryd village in
Kamprad at Elmtaryd farm in Agunnaryd village in

Sweden. It started small, selling things like
Sweden. It started small, selling things like

pencils and postcards.
pencils and postcards.

In 1948, Ikea started selling furniture.
In 1948, Ikea started selling furniture.

In 2019, it sold seven million Billy bookcases.
In 2019, it sold seven million Billy bookcases.

A major reason people flock to Ikea is its price
A major reason people flock to Ikea is its price

point. When I hear Ikea, I think of cheap, simple
point. When I hear Ikea, I think of cheap, simple

furniture that looks really nice.
furniture that looks really nice.

Ikea falls in the affordable area of the
Ikea falls in the affordable area of the

spectrum, but it depends on what you buy.
spectrum, but it depends on what you buy.

They have beds that start at $99.
They have beds that start at $99.

They have really well designed beds that go up to
They have really well designed beds that go up to

$500. The Ikea brand is sleek, minimal and
$500. The Ikea brand is sleek, minimal and

affordable. Ikea from its very beginning has
affordable. Ikea from its very beginning has

focused a lot on its customers building its own
focused a lot on its customers building its own

furniture and therefore they could offer them
furniture and therefore they could offer them

cheaper prices.
cheaper prices.

If you're starting out, you're moving into your
If you're starting out, you're moving into your

first apartment, you don't have a lot of money to
first apartment, you don't have a lot of money to

spend. Keep it simple.
spend. Keep it simple.

Look at Nordic design.
Look at Nordic design.

Buy some simple Ikea pieces and invest in some
Buy some simple Ikea pieces and invest in some

really nice bedding, a great rug, cool side
really nice bedding, a great rug, cool side

tables. Prices are lower in part because Ikea is
tables. Prices are lower in part because Ikea is

basically a giant storage facility for furniture
basically a giant storage facility for furniture

parts. It's the warehouse's design that sets it
parts. It's the warehouse's design that sets it

apart. So what a great store will do will allow
apart. So what a great store will do will allow

you the pleasure of discovery.
you the pleasure of discovery.

So anytime I hear a retailer saying, "Our
So anytime I hear a retailer saying, "Our

consumers want to come in, take some stuff and
consumers want to come in, take some stuff and

run out." Yes, they will.
run out." Yes, they will.

If you didn't give them the pleasure of
If you didn't give them the pleasure of

discovery. So a great store will give you the
discovery. So a great store will give you the

sense of comfort and familiarity and will also
sense of comfort and familiarity and will also

give you the pleasure of discovery.
give you the pleasure of discovery.

And that is when retail becomes retail therapy.
And that is when retail becomes retail therapy.

The winding maze is designed to make customers
The winding maze is designed to make customers

stop and shop and spend more than they planned.
stop and shop and spend more than they planned.

You walk through an Ikea store and you'll find a
You walk through an Ikea store and you'll find a

number of mirrors.
number of mirrors.

Mirrors placed tastefully here, tastefully there,
Mirrors placed tastefully here, tastefully there,

on a table, on a closet, etc.
on a table, on a closet, etc.

The brain is entranced with mirrors.
The brain is entranced with mirrors.

Why? Why?
Why? Why?

When you look in a mirror, you see the most
When you look in a mirror, you see the most

gorgeous human being looking back at you.
gorgeous human being looking back at you.

Ikea plays to the narcissist in each of us.
Ikea plays to the narcissist in each of us.

Ikea employs mirrors everywhere through their
Ikea employs mirrors everywhere through their

stores. As you walk by, you have love because you
stores. As you walk by, you have love because you

have love for yourself in the mirror.
have love for yourself in the mirror.

Point number one. Point number two, Ikea uses
Point number one. Point number two, Ikea uses

white everywhere through the store.
white everywhere through the store.

White cupboards, white closets, white tables.
White cupboards, white closets, white tables.

There is almost an App le-esque view.
There is almost an App le-esque view.

If Apple was to design a closet, it would
If Apple was to design a closet, it would

probably look like an Ikea closet.
probably look like an Ikea closet.

The brain perceives everything through context.
The brain perceives everything through context.

The notion of that white there symbolizes
The notion of that white there symbolizes

clutter-free, pure, simple, transparent, without
clutter-free, pure, simple, transparent, without

saying all those words, through the judicious use
saying all those words, through the judicious use

of white, that is spotless, Ikea communicates
of white, that is spotless, Ikea communicates

what you aspire for your home.
what you aspire for your home.

The crisp, clean aesthetic lends itself to a
The crisp, clean aesthetic lends itself to a

broad audience. But I kea doesn't just sell
broad audience. But I kea doesn't just sell

furniture. Glassware.
furniture. Glassware.

I would always go to Ikea for glassware, dishes,
I would always go to Ikea for glassware, dishes,

pots and pans.
pots and pans.

I love their $500 solid wood bed.
I love their $500 solid wood bed.

Depending on the situation, they have some very
Depending on the situation, they have some very

nice minimal sofas.
nice minimal sofas.

I do not shop at Ikea for bedding.
I do not shop at Ikea for bedding.

Pillows, duvets, comforters, sheets and towels I
Pillows, duvets, comforters, sheets and towels I

think are items that you really want to invest
think are items that you really want to invest

in. For families shopping at Ikea,
in. For families shopping at Ikea,

some locations have complimentary daycare .
some locations have complimentary daycare .

With or without the kids,
With or without the kids,

shopping can be exhausting.
shopping can be exhausting.

Do you know that the most tiring environment for
Do you know that the most tiring environment for

the entire human brain, the most tiring
the entire human brain, the most tiring

environment, is a retail environment?
environment, is a retail environment?

It is the worst environment for the human brain
It is the worst environment for the human brain

simply because you're processing so much
simply because you're processing so much

information. But Ikea has a plan to keep you
information. But Ikea has a plan to keep you

energized. When I hear Ikea, I think of
energized. When I hear Ikea, I think of

meatballs. It recognizes that customers need
meatballs. It recognizes that customers need

sustenance to keep shopping.
sustenance to keep shopping.

Right in the center of most stores, you'll find a
Right in the center of most stores, you'll find a

cafeteria serving up Swedish fare.
cafeteria serving up Swedish fare.

But in 2013, horse meat was detected in Ikea's
But in 2013, horse meat was detected in Ikea's

meatballs. The problem was traced back to a
meatballs. The problem was traced back to a

European supplier and only affected European
European supplier and only affected European

stores. Ikea pulled all meatballs until this
stores. Ikea pulled all meatballs until this

issue was resolved.
issue was resolved.

Despite this news going viral, the iconic dish
Despite this news going viral, the iconic dish

remains on the menu. Another Ikea classic: the
remains on the menu. Another Ikea classic: the

cinnamon bun. Its placement near the exit is no
cinnamon bun. Its placement near the exit is no

accident. There's a part of the brain that fires
accident. There's a part of the brain that fires

every time you pay.
every time you pay.

Right? And so by having the scent of baking, of
Right? And so by having the scent of baking, of

warmth, of sugar in particular, that takes the
warmth, of sugar in particular, that takes the

stress out, they get down the stress of payment.
stress out, they get down the stress of payment.

And therefore the experience is memorable without
And therefore the experience is memorable without

it overwhelming you with how much money you spent
it overwhelming you with how much money you spent

out there. But whether you buy Ikea furniture in
out there. But whether you buy Ikea furniture in

the store or online, once you open the boxes,
the store or online, once you open the boxes,

it's time to get to work.
it's time to get to work.

The problem with Ikea was you realized that the
The problem with Ikea was you realized that the

closet was so minimalist and beautifully
closet was so minimalist and beautifully

designed. But, oh my God.
designed. But, oh my God.

There are 10 million parts I got to put together
There are 10 million parts I got to put together

to get the minimalistic design.
to get the minimalistic design.

What I don't like is that you have to put
What I don't like is that you have to put

everything together by yourself.
everything together by yourself.

Like, I want a delivery!
Like, I want a delivery!

Deliver it to me and put it together.
Deliver it to me and put it together.

Like, what if you're a single mom?
Like, what if you're a single mom?

You don't have anybody to do that for you.
You don't have anybody to do that for you.

However, according to a 2011 study by Harvard
However, according to a 2011 study by Harvard

Business School, you are more inclined to value
Business School, you are more inclined to value

an item you built yourself.
an item you built yourself.

The study even named this phenomenon the "Ikea
The study even named this phenomenon the "Ikea

Effect." But many customers don't want to
Effect." But many customers don't want to

assemble their own furniture.
assemble their own furniture.

One of the other really big trends we're seeing
One of the other really big trends we're seeing

is a shift toward services.
is a shift toward services.

So you have people like Amazon that are offering
So you have people like Amazon that are offering

convenience. Now, all of a sudden, it's not just
convenience. Now, all of a sudden, it's not just

how good is a product in your store, it's what
how good is a product in your store, it's what

kind of simplicity can we offer our customers?
kind of simplicity can we offer our customers?

The Besta cabinet is the most versatile.
The Besta cabinet is the most versatile.

It stands on legs.
It stands on legs.

You can hang it on the wall.
You can hang it on the wall.

Anything you need the Besta unit to do, I highly
Anything you need the Besta unit to do, I highly

advise it. Hire TaskRabbit to put it together and
advise it. Hire TaskRabbit to put it together and

hang it on the wall. It'll just make your life
hang it on the wall. It'll just make your life

easier. So in 2017, Ikea acquired TaskRabbit.
easier. So in 2017, Ikea acquired TaskRabbit.

Now, for a flat fee, Ikea customers can hire
Now, for a flat fee, Ikea customers can hire

TaskRabbit to do the assembly.
TaskRabbit to do the assembly.

Since the acquisition TaskRabbit's, furniture
Since the acquisition TaskRabbit's, furniture

assembly tasks have gone up from 2 % to 10 %.
assembly tasks have gone up from 2 % to 10 %.

There's been a lot going on with Ikea lately.
There's been a lot going on with Ikea lately.

Since 2010, the company has recalled millions of
Since 2010, the company has recalled millions of

products. The most infamous, the Malm line of
products. The most infamous, the Malm line of

chests and dressers.
chests and dressers.

Ikea is recalling 29 million dressers for a
Ikea is recalling 29 million dressers for a

second time after the product was blamed for the
second time after the product was blamed for the

death of an eighth child in May.
death of an eighth child in May.

Consumers are being asked to secure the items or
Consumers are being asked to secure the items or

return them. It still sells these items today.
return them. It still sells these items today.

Ikea is currently making some necessary changes
Ikea is currently making some necessary changes

to its business model.
to its business model.

One of the new things, if you like, is the
One of the new things, if you like, is the

investments in digital.
investments in digital.

Well, we have given ourselves three years to make
Well, we have given ourselves three years to make

a massive transformation.
a massive transformation.

So if you want to do it at home on a Tuesday
So if you want to do it at home on a Tuesday

evening when the kids are to bed and things are
evening when the kids are to bed and things are

done, we will try to bring our solutions and our
done, we will try to bring our solutions and our

knowledge digitally to you.
knowledge digitally to you.

It's investing in its online presence, delivery
It's investing in its online presence, delivery

services and opening smaller stores.
services and opening smaller stores.

The majority of Ikea stores are operated by Ingka
The majority of Ikea stores are operated by Ingka

Group. Its operating income, one measure of
Group. Its operating income, one measure of

profits, was down 26 % in 2018.
profits, was down 26 % in 2018.

Ingka Group says the drop in profits is part of
Ingka Group says the drop in profits is part of

the plan. Ikea will close its only U.S.
the plan. Ikea will close its only U.S.

factory at the end of 2019.
factory at the end of 2019.

Ikea Group, the owner of most Ikea furniture
Ikea Group, the owner of most Ikea furniture

stores worldwide, says it plans to cut 7,500 jobs
stores worldwide, says it plans to cut 7,500 jobs

over the next couple of years.
over the next couple of years.

Those cuts will be focused on administrative
Those cuts will be focused on administrative

staff positions. At the same time, however, the
staff positions. At the same time, however, the

group also says it will create 11,500 new
group also says it will create 11,500 new

positions as it expands with new store formats
positions as it expands with new store formats

and online.
and online.

Ikea thrives on a business of quantity, not
Ikea thrives on a business of quantity, not

quality. You can say that Ikea is the fast
quality. You can say that Ikea is the fast

fashion of home furnishings because it does
fashion of home furnishings because it does

produce relatively inexpensive products that may
produce relatively inexpensive products that may

seem disposable because of the, say, average
seem disposable because of the, say, average

quality. You know, whether or not Ikea is
quality. You know, whether or not Ikea is

sustainable because of that functionality of
sustainable because of that functionality of

encouraging people to buy more.
encouraging people to buy more.

True sustainability would be people buying better
True sustainability would be people buying better

quality things that last longer.
quality things that last longer.

And that results in fewer purchases.
And that results in fewer purchases.

But that is not how corporations work.
But that is not how corporations work.

It seems like customers don't work that way
It seems like customers don't work that way

either. Depending on the country,
either. Depending on the country,

people will say that they care about the climate.
people will say that they care about the climate.

They care about sustainability.
They care about sustainability.

But if there's a higher price tag, to that, it
But if there's a higher price tag, to that, it

will deter some people.
will deter some people.

It's very easy to design a sofa for $3,000, but
It's very easy to design a sofa for $3,000, but

to do a comfortable sofa with good quality that
to do a comfortable sofa with good quality that

the kids can jump up and down in with removable
the kids can jump up and down in with removable

covers, you can wash them, that is made of
covers, you can wash them, that is made of

sustainable foam that you can bring back in the
sustainable foam that you can bring back in the

supply chain and make a new sofa.
supply chain and make a new sofa.

And it's beautiful and comfortable at the low
And it's beautiful and comfortable at the low

price is very, very difficult.
price is very, very difficult.

So our fascination is around that problem, not to
So our fascination is around that problem, not to

make something expensive.
make something expensive.

Ikea alone used 18 million cubic meters of
Ikea alone used 18 million cubic meters of

commercial wood in 2018.
commercial wood in 2018.

It's making a conscious effort toward
It's making a conscious effort toward

sustainability. As of 2018, Ikea's Ingka Group
sustainability. As of 2018, Ikea's Ingka Group

owns around 445,000 acres of responsibly managed
owns around 445,000 acres of responsibly managed

forests. Combined, that's bigger than Alaska.
forests. Combined, that's bigger than Alaska.

Ingka Group has planted 3.6
Ingka Group has planted 3.6

million trees and had harvested 700,000 trees in
million trees and had harvested 700,000 trees in

2018. The clock is ticking.
2018. The clock is ticking.

So it's time for companies like us to commit and
So it's time for companies like us to commit and

start working out our plans and live with that
start working out our plans and live with that

we might not have all the answers, but we will
we might not have all the answers, but we will

find them in the decade or so to come.
find them in the decade or so to come.

While the company aims to make internal changes,
While the company aims to make internal changes,

it's also focusing on extending the life of
it's also focusing on extending the life of

products it's already sold.
products it's already sold.

Ninety percent or north of 90 % of all our
Ninety percent or north of 90 % of all our

consumers are concerned today, are really
consumers are concerned today, are really

concerned about climate.
concerned about climate.

But only 3% know what they can do.
But only 3% know what they can do.

So what we will try is to try different ways of
So what we will try is to try different ways of

supporting them with saving water, waste, energy
supporting them with saving water, waste, energy

and to that testing, trying new ways of where you
and to that testing, trying new ways of where you

can also rent furniture, or lease furniture from
can also rent furniture, or lease furniture from

us. So we keep the furniture in the system a
us. So we keep the furniture in the system a

longer while. So that's just one of the different
longer while. So that's just one of the different

tests that we are doing right now.
tests that we are doing right now.

In the meantime, Ikea is opening planning studios
In the meantime, Ikea is opening planning studios

in city centers.
in city centers.

The showrooms are significantly smaller than
The showrooms are significantly smaller than

traditional Ikea stores.
traditional Ikea stores.

What Ikea and a lot of other retailers are trying
What Ikea and a lot of other retailers are trying

to do is downsize their footprint and focus on
to do is downsize their footprint and focus on

doing smaller stores that can cater to today's
doing smaller stores that can cater to today's

shoppers. The first Ikea planning studio opened
shoppers. The first Ikea planning studio opened

in Manhattan in April 2019.
in Manhattan in April 2019.

Giants like Target and Dollar General are also
Giants like Target and Dollar General are also

opening smaller shops.
opening smaller shops.

And online companies like Wayfair are also
And online companies like Wayfair are also

adjusting their strategies.
adjusting their strategies.

So one strength that Ikea has is the fact that it
So one strength that Ikea has is the fact that it

does have a brick and mortar footprint because
does have a brick and mortar footprint because

people can pick it up and that's cheaper for them
people can pick it up and that's cheaper for them

to operate. One of the things that Wayfair really
to operate. One of the things that Wayfair really

struggles with is its cost of doing business.
struggles with is its cost of doing business.

That's why we're actually seeing Wayfair go into
That's why we're actually seeing Wayfair go into

brick and mortar. So you're kind of seeing online
brick and mortar. So you're kind of seeing online

retailers trying to adapt to brick and mortar and
retailers trying to adapt to brick and mortar and

brick and mortar like Ikea, trying to adapt to
brick and mortar like Ikea, trying to adapt to

online. But both have strengths
online. But both have strengths

the others want.
the others want.

Wayfair is just one of many retailers coming for
Wayfair is just one of many retailers coming for

Ikea. For now, Ikea is still on top, but can it
Ikea. For now, Ikea is still on top, but can it

stay there? Or will the growing marketplace level
stay there? Or will the growing marketplace level

the playing field?
the playing field?