Why is IKEA so cheap?

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Buyers like Ikea because of how affordable the furniture is.

IKEA sells sofas, chairs and tables for about half of what competitors do. At IKEA, you can buy a sofa under $ 500. But in another store that specializes in home furniture, such as pottery barns or crates & barrels, sofas are usually valuable at least $ 900, if not more.

But considering how low the price of IKEA, the quality is very high. How can you keep prices so low?

Many have to do with designing each item. IKEA chose what they want to sell products before designing and making it, and designers and suppliers work together to ensure the final product can be a price.

IKEA can also cut costs and maintain low prices because of how to sell their products.

In 1956, the founder of IKEA Invar Kamprad introduced "flat packaging," the current method is identical to IKEA which cut costs by allowing consumers to buy their own furniture and assemble themselves. Even though it might be annoying to assemble the furniture itself, it allows IKEA to charge less for everything.

Here are other things IKEA to maintain a low price:

Let's start with a good one

IKEA has made extraordinary progress in the renewable fronts.

IKEA has installed more than 900,000 solar panels in warehousing and their showrooms and owners and operates 441 wind turbines all in pursuit of independent energy in 2020. It is certainly awesome given that there are 424 IKEA stores throughout the world who need a large number of fuel. and energy to run.

together with this quick transition to renewable energy, IKEA is committed to eliminating emissions for all home delivery in 2025 which means the home transportation fleet is fully electrical in the next six years.

to equip everything, IKEA wants to achieve a circular waste model in 2030. With a single plastic use in stores combined with the use of recycled materials in their products such as their kungsbacka lines, which use wood and plastic recycled them bottles to make kitchen cabinets , IKEA has departed to redefine their relationship with waste.

In terms of changing climate change and ambition

Ikea did better than most of the other big names brands in the field. But there is always a back side to the coin. You should not praise Ikea to do something else should do. This is our work as a consumer and as a person to consider the consequences of the brand that decides a very low price for furniture and then challenges the design team and suppliers to meet any price with these costs.

In fact, according to IKEA, the company's carbon footprint grew from 23.3 million tons of CO2 in 2016 to 24.6 million tons of CO2 in 2018, which is approximately 1.2 million tons more CO2 in just two years. Even though they installed hundreds of thousands of solar panels on their showroom roof, they were still growing companies. Suppliers, storage, and shipping they make more furniture than before and not all are connected to the clean grid. 

In terms of material

IKEA consumes 1% of the wood recorded in the world for their furniture. Only for one company, it is a really big amount. According to the company, they tried to plant more trees than they consumed, stating that in the 2018 fiscal year they recorded 700,000 trees and planted 3.6 million trees. 

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