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Quality home furnishing products at affordable prices

Low prices are the cornerstone of the IKEA vision, business idea and concept. The basic thinking behind all IKEA products is that low prices make well-designed, functional home furnishings available to everyone. After all, our vision is to create a better everyday life for the many people.
We are constantly trying to do everything a little better, a little simpler, more efficiently and always cost-effectively. All IKEA units play an important part in creating our low prices which we are then able to offer our customers.
New lower price

It's all very simple.

When we're able to lower our prices, more people can enjoy a better everyday life.

Seeing things differently

One IKEA product developer decided to use a door as a tabletop when he toured a door factory that used board-on-frame construction - a layering of sheets of wood over a honeycomb core that gives a strong, lightweight structure with a minimal wood content. This type of construction is cost-effective and environmentally friendly and is used today in IKEA products such as the LACK table from 1980.

Developing and producing our product range

At IKEA we design the price tag first and then develop the product to suit that price. IKEA product developers and designers work directly with suppliers to ensure that creating the low prices starts on the factory floor. They consider maximising production equipment, using raw materials efficiently and applying technical innovations and the best possible design. It is all about making the most of our production process, keeping waste to an absolute minimum and considering flat-pack transportation and self-assembly. IKEA of Sweden in Älmhult, Sweden, develops the entire IKEA range.

Distribution and purchasing

The IKEA Group has about 31 distribution centres in 16 countries, supplying goods to IKEA stores. It has about 45 trading service offices in 31 countries. This enables us to develop close relationships with our 1,350 suppliers in 50 countries.

Industry group

The Swedwood Group produces wood-based furniture and wooden components. Swedwood has manufacturing units in 11 countries, mostly in Europe. In every step of production from forestry, sawmilling and board manufacture to furniture production, it strives for cost-efficiency while taking social and environmental responsibility. To read more, please visit the Swedwood Group website.

IKEA stores

IKEA stores display the product range in room settings, offering customers inspiring home furnishing solutions. To help keep prices low, IKEA stores buy and transport products in bulk, are located in less expensive areas and take advantage of the self-service and assembly concept.

Expert and support functions

An organisation such as the IKEA Group requires internal support functions to operate smoothly. IKEA IT provides cost-effective IT solutions to all IKEA units. IKEA Food Services is responsible for cost-efficiency in food purchases, development and deliveries to IKEA restaurants, bistros and Swedish Food Markets. IKEA Indirect Materials & Services provides IKEA with products and services used by IKEA co-workers, excluding home furnishing products. These are just some examples of IKEA support functions.

Our responsibility

Taking responsibility for people and the environment is a prerequisite for doing good business.

IWAY – Our code of conduct

Defines what suppliers can expect from IKEA and what IKEA requires from its suppliers.