IKEA Invests in the Circular Economy

The Swedish group IKEA now expands the pilot they have been conducting for a year in Edinburg, enabling their customers to bring back their furniture in exchange for a voucher. IKEA repackages this furniture and sells them again at a lower price.

Reduce their environmental footprint by 15%. IKEA aims for this ambitious goal as well as for self-sustainability. They also opened a green energy-dedicated store in London. This recycling project by their unit in charge of sustainable growth fully pertains to this objective.
Rethink their brand image, shift away from “short-lived” furniture. Just like their rivals, IKEA anticipates the deconsumerism trend which is gaining ground among their customers, seeks to improve products’ repairability and extend their life-cycles: spare parts (screws, hinges, etc.), recycled material (wood, textiles, mattresses, etc.).
Delve into new business models. Recycling their products means looking into a new model which sprang from the advent of circular economy. As a matter of fact, IKEA is testing leasing services for furniture, too. This seems like a logical choice considering their products’ durability.

In the end of 2018, IKEA introduced a leasing offer for corporate customers in Switzerland, in the Netherlands and in Finland. This service lets them rent office equipment (from €1,000) over 12 to 60 months. This option is managed by their subsidiary Ikano Bank.
Over time, it could be applied to kitchen equipment and, in this case, address individual customers, as well.
IKEA stresses an overall and ongoing strategic shift. This process involves making changes to their sales formats, too. An inner-city store is set to open in Paris next May, to meet urban customers’ expectations as fewer people drive cars, and many don’t even have one any more.

Category : Alertes quotidiennes