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Ikea Product

To create beautiful, functional, affordable home solutions by revolutionizing how people live in and experience their homes

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To create beautiful, functional, affordable home solutions by revolutionizing how people live in and experience their homes

Strengths

  • BRAND: Globally recognized brand with strong customer loyalty
  • SCALE: Massive retail footprint with 460+ stores globally
  • DESIGN: Renowned for functional, affordable Scandinavian design
  • VERTICAL: End-to-end control of supply chain reduces costs
  • SUSTAINABILITY: Leadership in sustainable materials and practices

Weaknesses

  • DIGITAL: E-commerce platform lags behind industry standards
  • LOGISTICS: Delivery and fulfillment challenges in many markets
  • EXPERIENCE: Physical store experience can be overwhelming
  • CUSTOMIZATION: Limited product personalization options
  • TALENT: Difficulty attracting top-tier digital product talent

Opportunities

  • TECH: Augmented reality to revolutionize home planning experience
  • URBANIZATION: Growing demand for small-space furniture solutions
  • CIRCULAR: Expanding rental, resale and recycling product models
  • PERSONALIZATION: Data-driven home recommendations ecosystem
  • EMERGING: Untapped growth potential in developing markets

Threats

  • COMPETITION: Direct-to-consumer furniture startups gaining share
  • AMAZON: Expanding aggressively into home furnishings category
  • SUPPLY: Ongoing supply chain disruptions affecting availability
  • INFLATION: Price sensitivity during economic uncertainty
  • REGULATION: Increasing sustainability compliance requirements

Key Priorities

  • DIGITAL: Transform e-commerce experience with intuitive UX
  • PHYGITAL: Create seamless omnichannel customer journey
  • DATA: Implement robust product analytics ecosystem
  • AR/VR: Accelerate immersive home visualization technologies
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To create beautiful, functional, affordable home solutions by revolutionizing how people live in and experience their homes

DIGITAL REVOLUTION

Transform our e-commerce into a world-class experience

  • PLATFORM: Launch redesigned mobile-first e-commerce platform in 12 markets with 30% improved conversion rate
  • PERSONALIZATION: Implement AI product recommendation engine reaching 70% of digital customers with 15% lift
  • CHECKOUT: Reduce cart abandonment by 20% through streamlined checkout process and multiple payment methods
  • ANALYTICS: Deploy comprehensive product analytics across all digital touchpoints with 90% feature coverage
PHYGITAL FUSION

Create seamless online-to-offline customer journey

  • INVENTORY: Launch real-time inventory visibility system across all channels with 98% accuracy rate
  • TOUCHPOINTS: Implement unified customer recognition across online and in-store with 60% adoption rate
  • PICKUP: Expand in-store pickup option to 100% of locations with average wait time under 10 minutes
  • KIOSKS: Deploy digital guidance kiosks in 200 stores with 50% customer engagement rate
DATA MASTERY

Build robust data-driven decision ecosystem

  • FOUNDATION: Implement unified customer data platform integrating all touchpoints for 85% of customer base
  • INSIGHTS: Create automated product performance dashboard with daily updates for all product managers
  • EXPERIMENTS: Increase A/B testing capacity to 50 concurrent tests with standardized measurement framework
  • GOVERNANCE: Establish data governance framework with 100% compliance across all product teams
IMMERSIVE HOMES

Pioneer next-gen home visualization technologies

  • AR: Expand AR furniture placement app to include 85% of product catalog with 40% monthly active usage
  • PLANNING: Launch AI-powered room planning tool with 25% customer adoption in first 6 months
  • VISUALIZATION: Create photorealistic 3D renders for 70% of product catalog to enhance online shopping
  • ENGAGEMENT: Achieve 30% increase in time spent in planning tools with 25% conversion to purchase
METRICS
  • E-COMMERCE REVENUE GROWTH: 20% YoY
  • CUSTOMER SATISFACTION (NPS): 72
  • DIGITAL ENGAGEMENT: 35% of customers using digital planning tools monthly
VALUES
  • Togetherness
  • Caring for people and planet
  • Cost-consciousness
  • Simplicity
  • Renew and improve
  • Different with a meaning
  • Give and take responsibility
  • Lead by example
Ikea logo
Align the learnings

Ikea Product Retrospective

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To create beautiful, functional, affordable home solutions by revolutionizing how people live in and experience their homes

What Went Well

  • REVENUE: Total sales increased 5.6% YoY reaching €44.6 billion for FY23
  • SUSTAINABILITY: Renewable materials now used in 60% of product range
  • EXPANSION: Successfully opened 20 new city-center small format stores
  • DIGITAL: Online sales grew 15% representing 26% of total revenue

Not So Well

  • MARGINS: Gross profit margins decreased 2.3% due to supply chain costs
  • DELIVERY: Customer satisfaction with delivery speed down 8 percentage pts
  • INVENTORY: Stock availability issues affected 18% of popular product lines
  • CONVERSION: Mobile app purchase completion rate declined 5% year-over-year

Learnings

  • DIGITAL: Need to prioritize mobile-first shopping experience redesign
  • FULFILLMENT: Current last-mile delivery model doesn't meet expectations
  • DATA: Analytics capabilities insufficient to drive personalization at scale
  • INNOVATION: Product development cycle too slow compared to market needs

Action Items

  • UX: Complete comprehensive user experience overhaul of mobile app by Q3
  • LOGISTICS: Implement new last-mile delivery partnerships in 25 markets
  • ANALYTICS: Deploy unified customer data platform across all touchpoints
  • AGILE: Transition product teams to fully agile development methodology
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To create beautiful, functional, affordable home solutions by revolutionizing how people live in and experience their homes

Strengths

  • DATA: Vast repository of customer purchase and behavior data
  • LABS: Established SPACE10 innovation lab for future exploration
  • PILOTS: Successful AR furniture placement app implementation
  • INVESTMENT: Strong financial capacity for AI infrastructure
  • SCALE: Ability to test AI solutions across global operations

Weaknesses

  • TALENT: Limited AI/ML specialized talent within product teams
  • LEGACY: Outdated technology infrastructure in many markets
  • SILOS: Fragmented data across retail and e-commerce systems
  • STRATEGY: Lack of comprehensive AI product roadmap
  • GOVERNANCE: Unclear AI ethics and deployment frameworks

Opportunities

  • PERSONALIZATION: AI-driven product recommendations at scale
  • FORECASTING: Demand prediction to optimize inventory levels
  • VISUALIZATION: Advanced 3D rendering for room planning
  • AUTOMATION: AI-powered supply chain and logistics optimization
  • SUSTAINABILITY: ML models to reduce waste and carbon footprint

Threats

  • COMPETITION: Faster AI adoption by digital-native competitors
  • TALENT: Industry-wide competition for limited AI expertise
  • PRIVACY: Evolving regulations concerning customer data usage
  • ADOPTION: Customer resistance to AI-powered experiences
  • INVESTMENT: Rising costs of AI infrastructure and development

Key Priorities

  • PLATFORM: Create unified data foundation for AI applications
  • TALENT: Establish specialized AI product development team
  • EXPERIENCE: Prioritize AI implementation in customer journey
  • PLANNING: Develop immersive AI-powered home design tools