IKEA’s Humble Beginnings

Although you’ve most likely never heard of Ingvar Kamprad, you’ve probably heard of his company. You may have even shopped there at one time or another. Kamprad is the founder of IKEA, a popular inexpensive furniture and home goods store. Kamprad, who was born in Sweden in 1926, showed his aptitude for business at a very early age. After discovering he could buy matches in bulk and sell them to his neighbors individually for a profit, he started selling matches from his bike. Over the years, he expanded his selection to include various items, including Christmas decorations, seeds, and pens and pencils.

Kamprad was born in 1943 at his uncle’s kitchen table. The company sold assorted household items, including wallets, watches and stockings, and delivered them to area customers using a milk delivery van (About.com). Kamprad added furniture to his offerings in 1947, providing the foundation for all future IKEA stores. He used products from local companies to keep his costs low. The first showroom opened in 1953 and focused solely on furniture.

IKEA focuses on inexpensive (yet durable) furnishings that are packed flat and can be assembled easily. Packing the furniture flat saves money during shipping and allows customers to get their furniture home without having to pay for an expensive delivery.

Although Kamprad has a net worth of about $23 billion, he is notoriously frugal. He travels economy, drives an old Volvo and even recycles teabags. He challenges his employees to be frugal as well, urging them to write on both sides of each piece of paper and encouraging furniture designers to build economical and sturdy furnishings. Today, IKEA has more than 250 stores in 25 countries worldwide.