01_Jul_APUS_IKEA – Coming out of Woods – How the global furniture company is competing against X,Y,Z in US

IKEA Marketing Strategy Keeps it Down-to-Earth 

Leave a comment / / By Ruchi Roy

$500 to anyone who can name IKEA’s slogan. No takers? OK, $500 for anyone who can describe the vibe of IKEA. Aha, there’s a question that has a line of people willing to answer. 

Though the official slogan, Live Unboring, gives a hint about IKEA’s strategy to market their furniture, they’ve cultivated an entire brand around Swedish low-key, simple, cheap, and DIY creativity.  

Their vibe sells furniture, and compels you to take credit for assembling it. Because, on a sunny Sunday afternoon, people love getting their hands dirty and finding satisfaction in pure manual labor.  

But what’s churning behind the brand’s marketing strategy? Do people love IKEA because it makes their furniture-buying expedition lively, or has the marketing strategy cultivated a real persona for the brand that attracted them?  

IKEA makes their audience feel good, strong, and innovative 

IKEA already has a brand persona that represents true Scandi-minimal living. Although, this is one of the facts. Another one is — as the company claims) that you, as a bachelor, single-parent, pet-parent, newly-hired employee at a tech company or a corporate staff — will find something useful. Then you’ll build it. That highlights that the brand is aware of inclusion and diversity.   

I visited the Instagram and YouTube channel of IKEA USA to see if the brand was talking the talk of their brand perception. IKEA USA’s digital outlook is mainly different from that of the leading furniture companies in the North American region. It is minimal, diverse, inclusive, not-very-out-of-the-touch and engaging.  

The latest campaign on social media is for college students who are about to head into another semester. Their feed is full of pride posts, free-lunch posts, influencers’ collaborations, and their products’ impact on buyers. It’s cool, light, smart, and friendly. 

IKEA assembles the creativity and technology for customer experience 

In today’s culture, where AI and personalized prompts rule brand experiences, IKEA was an early adopter of AI and augmented reality in its digital marketing. 

IKEA has been selling experiences through its every sale, and now, it is unleashing the power of generative AI, which allows customers to design their spaces easily. IKEA Kreativ, a 3D space where customers can plan the empty space with available furniture. It is like having a personal interior designer in our pockets.

The IKEA customer experience is not just finding a product, selecting, and ordering. It’s more of find, create, experience, and order. The idea of providing convenience and expertise to customers looks like an added USP for IKEA.  

For millennial or Gen-Z consumers visiting the site and spending time designing a space with affordable and stylish furniture – this AI is both practical and exciting.  

IKEA USA has a winning strategy, but… 

The winning strategy — smooth customer experience, diverse and inclusive buyer persona, and minimal furnishing — positioned IKEA as an emerging and chosen brand for many. The USA brand reported more than 6 percent growth in 2023 compared to 2022. In 2023, the online brand awareness of IKEA USA soared compared to competitors like Wayfair and Pottery Barn.  

Credit: Statista

While IKEA USA can enjoy its pop-champagne moment, IKEA USA does not have a place in the top five leading furniture online shops. Established in 1985, IKEA USA peaked in 2021 with its retail sales despite the raising cost and challenging supply chain while being in Covid-19 pandemic restriction. One of the reasons for IKEA USA’s success is the close relationship it has formed with its customers by taking care of people. At the start of 2022, it raised minimum wages and supported over 280 non-profit organizations through volunteer activities and cash contributions.

Credit: Statista

IKEA USA announced that it would open plan and order locations at more than four locations in Austin, Texas, and Los Angeles. The virtual and hands-on experience has enabled buyers to dive deep.  

As IKEA USA continues to innovate and expand, only time will tell if its new strategies propel it to the top of the furniture retail market. Still, one thing is sure: the journey ahead promises to be anything but boring. 

Cut to the chase 

IKEA is popularizing in the furniture industry with its digital marketing strategy that focuses on vibes over slogans. The brand’s persona is relatable and perfectly aligned with buyer expectations and is propelling them to quick success.  

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