IKEA: Democratic Design & Sustainability
IKEA, the world’s largest furniture brand, has evolved from a small Swedish company into a global manufacturing giant.
Throughout this process it has exhibited lengthy dedication to sustainability, form its product manufacturing to supply chain.
With the global furniture market anticipated to reach around US$800bn in 2024, IKEA has further opportunities for growth. Opportunities which the company will embrace through sustainable, reliable and efficient business and production strategies.
These strategies include IKEA's philosophy of Democratic Design, and ambition to manufacture greener home goods for the future.
The flat-pack: epitomising democratic design
IKEA, founded by Ingvar Kamprad in 1943 in Småland, Sweden, initially began with Kamprad selling pens and wallets.
In 1948, he ventured into furniture sales, marking the beginning of IKEA’s product line.
Kamprad emphasised offering low prices without compromising on quality, as highlighted in the 1948-1949 brochure “ikéa-nytt”: “Our low prices – by far the lowest in the land – are possible thanks to a high turnover, direct delivery from the factory and very low overheads.”
In 1953, IKEA introduced flatpack furniture, which significantly cut transportation costs and reduced damage rates, leading to the widespread adoption of self-assembly furniture.
The company also introduced the concept of Democratic Design, which incorporates price, quality, function, form and sustainability into product development.
This principle remains a cornerstone of IKEA today.
“Democratic Design is a tool we use when we develop and evaluate the products we put into our range," Sarah Fager, Senior Designer at IKEA of Sweden AB, explains.
"It has five dimensions, which are function, form, quality, sustainability and low price. When there is a balance between all five, we consider that the design is democratic.”
Sarah expands on this, praising the FLISAT desk designed for kids as an IKEA product that embodies Democratic Design and balances these five key dimensions.
"The price is fair, it can be height-adjusted so it grows with the child, and it has smart functions such as a tilted tabletop and paper holder," Sarah says.
"We hope these functions encourage children to be creative.
"It’s very high quality and has a classic form so that it can be loved and passed on to future generations.
"The material is sustainable and renewable – wood. It’s quite simply Democratic Design.”
IKEA also expanded into food services, opening its first fully equipped restaurant in 1960 to keep customers in stores during lunchtime, thereby increasing sales.
During the 1960s and 1970s, IKEA expanded beyond Sweden, reaching Denmark, Norway and many countries outside Scandinavia.
To ensure long-term independence, Kamprad separated retail ownership from the IKEA brand by creating a franchise system in the early 1980s.
The first edition of "ikéa-nytt" (IKEA News) was published in spring 1948, initially targeting retailers with promises of good quality at low prices.
Ingvar Kamprad wrote all the text, focusing on items like pens, watches and nylon stockings.
By the autumn 1948 issue, furniture was prominently featured.
In 1949, Kamprad targeted the general public with a mass mailing through the farming paper Jordbrukarnas Föreningsblad, emphasising low prices due to high turnover, direct factory delivery and low overheads.
Five issues of "ikéa-nytt" were released between 1948 and 1952, with the final issue marking IKEA's shift to exclusively selling home furnishings.
The IKEA Catalogue, first published in 1950, also became a marketing cornerstone until its final print in 2021.
To bring its homeware to life, IKEA collaborates with over 1,200 local furniture suppliers worldwide, along with 100 food suppliers and 275 transport suppliers.
The primary supplier countries are China, Poland, Italy, Germany and Sweden.
The Ingka Group is the largest of IKEA's 12 franchisees, responsible for about 90% of total sales.
It operates in three main areas:
IKEA Retail, with nearly 400 stores in 31 markets
Ingka Centres, which establish shopping centers anchored by IKEA stores across Europe and China
Ingka Investments, which focuses on sustainable growth through partnering with companies with shared values
SILVERSIDA: the eco-friendly homeware of the future
A prime example of IKEA’s sustainable innovation is the SILVERSIDA series, which repurposes ceramic production waste into new tableware.
Ceramics are notoriously difficult to recycle due to their durability and heat resistance, making disposal a complex issue.
In line with its goal to use only renewable or recycled materials by 2030, IKEA is focusing on innovation in ceramics.
Four years ago, a Romanian supplier suggested using ceramic waste from the second firing, which is more challenging to recycle due to its stronger chemical bonds.
By grinding defective ceramics and incorporating them into new raw materials, IKEA can reduce waste and divert it from landfills.
“It took several years to develop SILVERSIDA because creating a good quality product from this waste and making the production flow scalable wasn’t straightforward,” says Karin Engquist, a Product Design Developer.
The SILVERSIDA series now comprises 65-70% internal factory waste, potentially paving the way for post-consumer ceramic recycling.
Henrik Preutz, an IKEA in-house designer, crafted the SILVERSIDA series to be visually appealing and durable, the expressive blue splashes adding a playful, contemporary look.
“It’s an amazing feeling to be able to make a change, and to do so on a large scale,” says Karin.
IKEA aims to reduce its emissions by 50% by the end of the 2030 financial year.
This is a significant increase from its previous 15% target, which it surpassed in 2023.
Inter IKEA, responsible for manufacturing IKEA products and franchising store owners, is focused on cutting absolute greenhouse gas emissions across the entire value chain, from raw material production to product disposal.
The new 50% reduction target is set relative to the 2016 financial year, whereas the earlier 15% target was established in 2017.
The company achieved a 12% reduction in emissions in the most recent financial year, driven by the transition of many of its manufacturing facilities to fully renewable energy.
"It's still going to be challenging and a lot of hard work, but there is at least a realism in the goal of 50%," says Par Stenmark, Chief Sustainability Officer at Inter IKEA.
In the 12 months ending August 2023, IKEA's emissions totaled 24.1 million tonnes of CO2 equivalent.
This was a decrease from 27.2 million tonnes in the 2022 fiscal year and 22% lower than in 2016.
Additionally, 142 IKEA or supplier factories transitioned to using 100% renewable electricity, raising the total to 408.
Raw materials, such as wood, account for 45.9% of IKEA’s emissions, while product use in homes contributes 16.1%.
Emissions from materials dropped by 17% in 2023, partly due to reduced production. IKEA also started using glue made from industrial corn starch in Lithuania, replacing petroleum-based glue.
"We are stepwise introducing it in production because availability is not really high at the moment," Par comments.
IKEA aims to reach net-zero emissions by 2050, avoiding carbon offsets, and has submitted its new targets to the Science Based Targets Initiative.
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