IKEA is well-known for the furniture for the budget-minded and middle-class buyers. But can the company present their goods to somewhat richer people? At least that is new management intention. IKEA Group Chief Executive Peter Agnefjall said the push was due to customers increasingly demanding more.
IKEA, one of the world’s strongest brands, risks losing market share to new online-mainly furniture stores. Online retailers Amazon and Alibaba and fashion brands Next (NXT.L), Zara (ITX.MC) and H&M (HMb.ST) are also adding home furnishing to their offerings.
IKEA Group, which owns most IKEA stores, is on track for a 2020 sales target of 50 billion euros ($56 billion). But many associate it with disposable quality and complex self-assembly.