Ingvar Kamprad founded Ikea at the age of 17, despite having dyslexia

He tried his best at school and earned money from his dad

IKEA= Ingvar + Kamprad + Elmtaryd + Agunnyard

The 1st thing he sold was Match Boxes

Not Furniture

He started to buy watches, pens, and postcards and sold them

His parent gave him a lot of money to help develop Ikea

He did mail ordering business, so there was no physical shop. It's like modern Internet shopping but using mails

He used his own backyard shed as storage for mails and products

Ingvar decided to buy furnitures and sell them

It was a great timing

Because after WWII, the Sweden government built new affordable houses, but had no furnitures

So demands for furnitures went rapidly high

It was built around 1958, decade after WWII

It was really big

8 and a half size of football field, and had 3 floors

From the first day, people inundated the Ikea store

One day, an delivery man said the furniture in the box wouldn't fit the trunk

That gave Ingvar the innovation that changed furnitures forever: "Why not detach the legs?"

It gave Ingvar the idea of detaching separate parts and letting the customer to build it.

It reduced transportation, storage cost and increased time efficiency,, distribution and simplicity

While having everything manufactured at a lower price

If the customer resemble the furniture himself / herself, they will feel ownership and pride

Resisting and increasing loyalty and trust between customers and IKEA

Because Ikea's stock went rapidly high, other companies were desperate to take Ikea down

Every time there is a trade fair for furnitures, other companies made a consensus that Ikea isn't allowed to join

But Ingvar secretly joined and still promoted their furnitures

That lead to an even serious problem

Global expansion began in the 1960s and 1970s

They opened new store with innovative self-serve warehouse

Established IKEA Group and foundation ownership

Even created the 4th largest charity in the world

Ingvar created new stores near Stockholm

But he never built in the middle of the city, always on the countryside

Because they can't build a humongous store in the middle of the city and it'll will cost a fortune

Placing in the countryside costs less and the taxes won't apply as much

So, modern days, you need to travel a pretty long way to reach IKEA

Ikea was growing at its fastest rates in the 80s

But haters of Ikea accused Ingvar as an active Nazi

But during the time Nazi was at the most disgusting period, Ingvar was just too busy building the first Ikea shop

Meaning, he wasn't an active Nazi

People accused Ingvar from secretly borrowing Nazi money

But it was NEVER true

He said: " People could have accused me of murder, but never borrowing money"

Ingvar never borrowed money in his whole life so it wasn't true that he borrowed money

People started to trust Ikea again

Ingvar was always honest

Never lied

So he was able to be loyal to customer again and gain more trust

IKEA effect was discovered in 2011 by scientists Michael I. Norton, Daniel Mochon, and Dan Ariely.

The researchers conducted their experiments, which demonstrated that people were willing to pay 63% more for an item they personally assembled as compared to an identical one that was pre-assembled.

Such a psychology can be used and realized in our daily life. This is due to the fact that people are satisfied and own things if they put in a lot of effort.

This effect may also be referred to as the endowment effect, which is the concept of people valuing more the things that they own.

An individual effect is only observed if the task in question is successfully carried out.

This principle is exploited by companies in marketing and product appeals, where adding value to things by customizing them involves customers' participation.

The IKEA effect shows how people’s sense of ownership grows through effort, doing the work makes something feel truly “yours.”

It’s a form of self-investment, where your time and energy make the object part of your identity.

The brain links the process of creation with reward, so you feel more satisfaction and pride in the outcome.

This effect can also make people overestimate the quality or value of what they built compared to professionally made items.

It explains why DIY projects, cooking, or customizing products often feel more rewarding than simply buying ready-made things.

Early news (1940s–70s): Focused on affordable, modern furniture.

Expansion (1980s–2000s): Seen as a global brand, revolutionizing furniture shopping.

Today: Highlighted for sustainability and occasional controversies.

Changed how people buy, transport, and assemble furniture (flat-pack design).

Shows globalization of Swedish design and influence on home trends.

Leader in sustainable retail practices.

1943: Founded by Ingvar Kamprad in Sweden.

1958: First store opened.

1973: First US store.

Today: 450+ stores in 60+ countries, ～217,000 employees, €46.6B revenue.

Innovation: Flat-pack furniture, affordable and easy to assemble.

Sustainability goal: Climate positive by 2030.

1940s–1970s: Seen as a cheap, modern solution for homes in Sweden.

1980s–2000s: Viewed as a cool international brand, introducing flat-pack furniture worldwide.

Today (younger kids & teens): IKEA is known for fun shopping trips, room decoration ideas, and DIY assembly.

Language shift: From “affordable furniture” → “global design brand” → “creative, DIY home fun.”

Positive impacts:

• Made affordable furniture accessible globally.

• Inspired home creativity and DIY culture.

• Push for sustainable materials and renewable energy use.

Negative impacts:

• Large stores take up lots of land.

• Mass production can create waste and environmental strain.

• Cultural adaptation issues in some countries led to controversy over products.

Definition & Description: Retail stores, warehouses, showrooms, online shops, and homes.

Category: Commercial/consumer space, home interiors, and global retail.

Started in small Swedish towns → expanded to big cities worldwide.

Physical stores became experience centers, not just shopping places.

Online shopping and delivery changed how people access IKEA.