The IKEA Concept

We constantly ask: is there a better way? That’s how the IKEA home furnishings offer remains unique and how we try to make an everyday life better for the many people.

Vision and business idea

“To create a better everyday life for the many people”, this is the IKEA vision. Our business idea is “to offer a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”.

We work hard to achieve quality at affordable prices for our customers through optimising our entire value chain, by building long-term supplier relationships, investing in highly automated production and producing large volumes. Our vision also goes beyond home furnishing. We want to create a better everyday for all people impacted by our business.

For the many people

The IKEA Concept starts with the idea of providing a range of home furnishing products that are affordable to the many people, not just the few. It is achieved by combining function, quality, design and value – always with sustainability in mind.

The IKEA Concept exists in every part of our company, from design, sourcing, packing and distributing through to our business model. Our aim is to help more people live a better life at home.


The story behind the name

The IKEA name combines the initials of IKEA founder, Ingvar Kamprad, (IK) with the first letters from the names of the farm and village where he grew up – Elmtaryd and Agunnaryd (EA). The IKEA logo has hardly changed during the company’s history and the 1967 version remains a consistent symbol of the IKEA business.

Together we save money

IKEA customers play an important role in what we call our democratic design process: we do our part, you do your part, together we save money. Customers get involved in many ways – assembling flat-pack products (first used over 60 years ago for the LÖVET table), having a climate positive approach at home and giving us feedback – are just a few.

Our product range

The IKEA product range is wide in several ways. Firstly, it is diverse in function: you'll find everything you need to furnish your home, from plants and living room furnishings to toys and whole kitchens. Secondly, it is diverse in style. The romantic at heart will find just as much as the minimalist. And finally, by being coordinated, the range is wide in function and style at the same time, and at all times. No matter which style you prefer, there is something for everyone.

Anybody can make a good quality product for a high price, or a poor quality product for a low price. But to make good products at low prices, you need to develop methods that are both cost-efficient and innovative. That is why at IKEA we approach things a little differently.

Low prices

All the IKEA products in the store are supported by price and product information that makes it easy for visitors to serve themselves. Customer involvement contributes to low prices.

You do your part. We do our part.

Together we save money!

We design price tag first

The LAMPAN was created from the fundamental idea that it is possible to combine an extremely low price with beautiful design and high quality. With the low price in mind, our designers began by reviewing the whole production process, including materials used, logistics and labour and transport costs. The outcome was a successful new packing method where the lampshade could be used as a bucket for the lamp base.

We see things differently

One IKEA product developer decided to use a door as a table top when he toured a door factory that used board-on-frame construction layering of sheets of wood over a honeycomb core that gives a strong, light weight structure with a minimal wood content. This type of construction is cost-efficient and environmentally friendly, and is used today in IKEA products, such as the LACK table from 1980.

Flat packing saves shipping cost

Our flat-packs and our customers' willingness to assemble products themselves enable us to reduce labour, shipping and storage costs. IKEA designs furniture so that it can be packed unassembled. Ultimately, this means that we are able to offer our customers products at low prices.

Responsibility for people and the environment

At the IKEA Group, we believe that taking responsibility for people and the environment is a prerequisite for doing good business. IKEA works actively to reduce its impact on climate change, and IKEA products must be produced under acceptable working conditions by suppliers that take responsibility for the environment.

Good design and function

It's not easy combining good design and good function with the right quality, at an affordable price. But then we aren't known for taking the easy way out. By working together with skilled manufacturers, IKEA designers find ways to get the most out of a raw material. We are constantly looking for smart solutions to meet our customer's needs.

Products and materials

IKEA works to ensure that products and materials are adapted to minimise any negative impact on the environment, and are safe for customers from a health perspective. As part of our business idea, we insist on keeping costs low and always try to use resources wisely when designing our products. We strive to use renewable and recyclable materials in our products.