Selling IKEA abroad: International retailing relies on understanding local culture

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

IKEA's founder Ingvar Kamprad comes from Småland, a province in southern Sweden where the people are thrifty, hard‐working and innovative. This is reflected in the company's vision “to create a better everyday life for the many people”. Every IKEA catalogue has a separate page where the company spells out the “deal” it has with its customers, showing how it works to save them both money. Stories of Kamprad's thrift and simplicity provide a living example of culture for other staff. IKEA is a company that wants to be very clear what it stands for and how it achieves its ambitions. As with other international retailers, this is something that gets harder when you work in many different countries. Human needs may stay much the same wherever you are, but the way people interpret those needs inevitably depends on local customs, culture, and economic circumstances. Transferring brand identity across borders represents a serious challenge and consistent delivery depends on all employees ‐ wherever they are ‐ understanding the brand vision and sharing the values. For IKEA, setting up stores in Russia and China was a big step and their experience offers lessons for others

Practical implications

The paper provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to digest format.

Citation

(2013), "Selling IKEA abroad: International retailing relies on understanding local culture", Strategic Direction, Vol. 29 No. 9, pp. 28-30. https://doi.org/10.1108/SD-08-2013-0056