From selling on Amazon to investing in AR, Ikea is on a digital mission
Inter IKEA Holding B V Digital Transformation Strategies the largest furniture retailer in the world, is aiming to dominate a new market: digital.
While looking for furniture has frequently been viewed as need might arise to happen in a genuine store, it seems Ikea has concluded it requirements to break out and seek after its web-based technique.
Here are some of the digital actions that the Swedish conglomerate is taking, ranging from experimenting with augmented reality (AR) technology to expanding the availability of its e-commerce platform.
1. Selling through third-party e-commerce sites is good news for fans of flat-pack furniture: It's possible that Ikea will soon sell its products through Alibaba and Amazon.
Ikea is going to begin testing selling products through other e-commerce websites after observing a decrease in visitors to its warehouse-style stores outside of the city. Inter Ikea's chief executive, Torbjorn Loof, told the Financial Times:
"[This] is the biggest change in how customers meet Ikea since the idea was first put forth."
In the UK, the starting price for online delivery from the retailer is currently £35, which frequently discourages customers from making online purchases. Additionally, Ikea's strategy to keep customers on foot and impulsively making purchases is reflected in the fact that there are fewer options available online than in stores.
"Generally the entire Ikea esteem bind has been intended to convey to stores. That is changing and it is testing various approaches to carrying on with work."
2. Acquisition of TaskRabbit A few weeks ago, it was made public that Ikea was going to purchase the gig economy app TaskRabbit in order to make it infinitely simpler to actually construct Ikea furniture.
TaskRabbit lets people hire handymen to do a variety of jobs, like fixing a broken tap with a plumber or building Ikea furniture you just bought. It makes sense for the two businesses to collaborate because platform workers already provided Ikea with building services.
Global Data, a global analysis firm, stated that this move:
"Suggests a company that is more open to change, and possibly hints and additional operational changes to eliminate customer pain points when shopping Ikea way,"
3. Getting into augmented reality (AR) With the release of the next generation of iPhones, Apple is pushing augmented reality (AR) technology. Ikea is one of the first brands to join in. At the Apple Overall Designers Gathering recently, Ikea's new AR application, Ikea Spot was uncovered.
The procedure is: Select the sofa or other piece of furniture you want to buy by downloading the app. The sofa will then appear on the screen if you hold up your iPhone or iPad in the living room. You can see how it will appear in real life thanks to this.
After you are satisfied with it, you can order the real furniture from Ikea.
You will soon be able to do that through Amazon and hire a TaskRabbit employee to build it as well.
How might this impact sales at Ikea?
The company's decision to fully embrace digital technology is interesting considering how slow it has been in the past. However, it will dynamically alter its operation.
The way its stores are set up has been called a "psychological weapon" to get you to spend more money there. The expansive layout that takes you from the living room to the kitchen to the bedroom can be quite overwhelming, making it much simpler to make impulsive purchases.
Even advice on how to defy Ikea's power and speed up your shopping trip can be found on websites like Lifehacker.
The retailer is giving back some of that power to the customer by making it easier for them to shop online. It might make customers happier and more willing to part with their money, rather than hurting its sales.
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