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Ikea in the downturn: Can they survive?
Posted by hipstomp | 26 Jan 2009  |  Comments (2)

0Ikea-in-Belfast-002.jpg

Ikea, the Swedish manufacturing giant that sought to bring clean, affordable (if not durable) design to the masses, is having as rough a time as anyone in the current economy. The Guardian's Helen Brown looks at their chances of survival:

So what do those of us in our 30s and 40s (Ikea's target customers) make of the company that furnished our 20s? Will we remain charmed by the style and the price, or will we desert them, either for more expensive, new stuff, or budget vintage buys? I bought a G-plan sideboard the other day--solid wood, beautiful design--for 35 pounds on eBay. Even Ikea couldn't make that quality for so little money.

And yet there are many alluring products in the new collection. As the designers show me around, I realise how brilliantly the company consistently personalises the industrialised, how cleverly they invest each product with a character of its own. They've started using red birch alongside regular birch to make mushroomy little stools that will retail for 45 pounds. With its unpredictable patterning, red birch is usually rejected by furniture makers and ground up for chipboard. But here it is loved and honoured. This is what Ikea does best: finding the unwanted and selling it to us as special.

Read the entire article here.

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Comments



JasonJanuary 26, 2009 6:21 PM

Can they survive? Yes. IKEA desk, $100; Design Within Reach, $1,000. I'm not worried about IKEA. A better article would discuss the business of high-end design and how they plan to survive an economic downturn. I see many attractive items at DWR--until I look at the price. IKEA sells similar stylings at a large discount. For me, the 50-200% premium of DWR goods simply isn't worth it.

Alexis BrionJanuary 27, 2009 6:33 AM

I think the biggest threat for IKEA is the way consumers will buy and waste in the feature. Are environment-friendly consumers going to buy "disposable" furniture?

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