Ingvar Kamprad

Submitted by on Sep 23, 2015

Ingvar Kamprad

Ingvar Feodor Kamprad was born on March 30 in a small 1926goda Smalandiya province in southern Sweden in the city of Älmhult. Kamprad’s biographers believe that passion was transmitted to trade Ingvar inheritance. But in 1897, the company, whose grandfather owned the future billionaire was on the verge of bankruptcy. Head of the family could not pay the mortgage and committed suicide. But grandmother Ingvar managed to save the situation. So she taught her grandson “willpower and hard” to win the circumstances.

My grandmother Francis, or, as we called her, Fanny has a huge impact not only on me, but also for the whole family. She was a very intelligent woman, though humble origin . & Raquo;

The people close familiar with Ingvar Kamprad, argue that it is a brilliant marketer, the smartest man who never makes a mistake. Indeed, the strategy Kamprad studied and studied the major entrepreneurs from around the world. Although, as he slyly says Kamprad, it – dropout. And it’s true – he never studied at university (school teachers long to teach him to read). However, in 1945, Kamprad became a graduate of the Higher Business School in Gothenburg – and it was his only professional education. The lack of a university degree Kamprad always replaced enthusiasm. Once he remarked:

If you are working, do not feel incorrigible enthusiasm – Consider that at least a third of your life has gone down the drain “.

The first trade transaction young Kamprad made in his childhood: he bought wholesale pencils and matches, which are then resold several times more expensive than classmates. During study Ingvar managed to try a variety of activities, from the fish trade to the sale of Christmas cards. This was a real school. Business, he was not trained, books on the subject have not read. But what we know today – IKEA company came through the personal experience of the founder and care.

In the field of business, I think I was a little different from the others because it has started to show business activity very early. My aunt helped me buy the first one hundred boxes of matches on the so-called sale”88 era”in Stockholm. The whole package cost 88 era, and aunt even made me a fee for postage. After this match, I sold at a price two or three boxes of the era, and some even 5 era. I still remember the pleasant feeling that is experienced, having received its first profit. At the time, I was no more than five years, “.

The first serious thing – base IKEA

The money set aside future businessman. While school friends live it up on the football field and dating girls, Kamprad was thinking about how to expand the business. And in 17 years (in 1943), adding to the accumulation of capital money borrowed from his father (who, however, was convinced that giving his son money to school), opened his own company – IKEA. Company name is derived from a few words. The first two letters – the initials of the Kamprad, the third letter of the company name means father Ingvar (after the death of his grandfather left the family business), and the fourth from the name of the parish in which the young Swede was.

It is interesting that the IKEA was founded only in order not to spoil relations with the supplier, who demanded “formality” in business. Due to lack of money and the young 17-year-old Ingvar was unable to register their company. To Ingvar’s father was involved, who was registered firm.

At the beginning of its activity the company was engaged in trade of a young Kamprad different things (from matches to discount Stocking). But the greatest demand pen: at the beginning of the forties, they were a novelty even in Sweden. Kamprad wrote 500 such pens from Paris, taking in the district to buy the bank loan of CZK 500 (at the time $ 63). According Kamprad, this was the first and the last loan that he took in his life.

To lure prospective customers to the presentation of the shop, a young entrepreneur promised to anyone who will come to the discovery of coffee and a bun. Imagine his surprise when this modest event attracted visitors more than a thousand people! The first presentation of the day was about to become the latest. However, coffee and a bun got everything. And the idea of ​​fast food in the store businessman remembered (as time passed, and each IKEA store received the mandatory restaurant).

At some point, Ingvar Kamprad has released a small homemade catalog of their products and started taking orders by mail. The biggest problem – Shipping – Ingvar decided to simply agreeing with the local milkman delivers milk every day around the neighborhood.

Furniture – here’s what we need!

Next, a young entrepreneur draws attention to the peculiarities of life in Sweden: the furniture is for most people is a luxury, because of too high prices. In 1948, Ingvar Kamprad prihoditsvezhaya idea – engage in trade of furniture, and that in the future will be the main corporate profits.

Guimars Fabriker of Alvesta, which was my main competitor, has long been selling furniture Kagnuit. I have read their ads in the agricultural newspaper that his father subscribed, and also decided to try his hand in this matter. Thus, the sale of furniture, which I began by accident and solely in order to outdo their competitors, determined my future . & Raquo;

Find out where you can buy very cheap furniture, Ingvar negotiates with small producers in upholstery. The range of his shop comes in two models – a coffee table and a chair without armrests. Armchair Kamprad called ” Ruth & raquo ;. Since then, every thing in the store was his name. Swedish-sounding name fashion goods sold at IKEA, thought the owner of the company, due to his inability to memorize numeric articles.

At the same time offers important emerging business – Kamprad principles. He began to distribute to their customers a small booklet, which was called the ” News IKEA & raquo ;. It was this pamphlet was the prototype of the modern IKEA catalog. Young businesswoman doing right orientation to customers with medium and low incomes. For this, he orders a local furniture factories cheaper models. Even then he came to his famous formula:

“The 60 chairs sell for a high price, it is best to lower the price and sell 600 chairs”.

In the early 50s Ingvar Kamprad gets old small factory in Sweden, which allowed to put on a production flow even more cheap furniture for their shops. It was nonsense for a country where the furniture has always been considered an expensive commodity. Such a risky move could not remain unnoticed by competitors. Kamprad boycott. Swedish National Association of sellers of furniture was so outraged by the low prices set by IKEA stores in that persuaded leading loggers to cease all cooperation with the brand IKEA.

Perhaps another businessman such a turn could be tragic, but not for Ingvar Kamprad, and not for the brand IKEA. Any problem and its solution – this is just a new stage of development of the company. As a result, the entrepreneur had to make unusual at the time for the Swedish business step: he began to acquire a portion of the components needed for assembly of furniture, “on the cheap” the Polish suppliers. So IKEA founder laid the future strategy of the company – to place orders for goods in those countries where it is cheaper.

The first IKEA furniture store was opened in 1953. And in five years, a shop area of ​​6,700 square meters, more or less similar to what we see today in huge letters at IKEA. By the way, the yellow-blue shopping malls companies were not always. Initially, the IKEA corporate color was red and white. Now the entire network IKEA, without exception, is painted in yellow-blue – Sweden’s national colors.

During this period, Ingvar Kamprad has not been a miracle child of Småland. It turned into a confident, sleek and dangerous competitor, whose methods are sometimes treated with contempt and frustration.

In the early 60’s Kamprad made a day trip to America. There he first saw shops selling system Cash & amp; Carry. He liked the trading scheme: huge stores are located outside the city limits, and customers service themselves – stacked goods in a cart and driven to his car.

When IKEA opened in 1963, a large store near Stockholm, there was a lot arranged considering the American experience, however, creatively recycled. Firstly, it was the suburbs: land prices there are much lower, and there is parking space. Second, to reduce transportation costs, the company has ordered a folding furniture, where every detail is placed in a flat package. So it was easier and cheaper to transport them. Collect the furniture were the buyers themselves. Kamprad had noticed that people really like to collect their own wardrobes and sofas. Especially if you make the procedure easy assembly thanks to the detailed instructions.

In 1969, the company opened a store in Denmark and has built a distribution center in Älmhult. The last step from the point of view of common sense, is not undisputed. Where there are so many buyers in the boondocks? But Ingvar knew that in Sweden started the car boom. And I realized that shopping for the serious people are willing to go even to distant lands. To encourage customers in IKEA stores were sold roof racks of cars. Of course, for a knockdown price. Through this policy the company’s turnover in one year has grown twice.

The shop itself, dubbed Kungens Kurva, and looks like the New York Guggenheim Museum, which is very attracted Kamprad. However, when you open it Ingvar Kamprad did not realize one thing – possible shortages of goods on store shelves. A huge number of people, literally cleaned, swept IKEA brand products from store shelves. Thirty thousand Swedes certainly wanted to buy a situation of low prices. In the store, although such a large, so there was no explanation.

Kamprad took the only right decision in this situation – launch customer to the warehouse. So, quite by accident, IKEA has found a formula for success, which provided corporate profits for many years. Shop-warehouse, exactly what is necessary for modern buyer. It Kungens Kurva with the style of the company decided once and for all. Now every furniture store IKEA – This kind of exhibition center. Where to show not only sofas and cabinets, but all the little things of everyday life: tablecloths, curtains, bedspreads, towels and candle holders. Moreover, taken it all as it should be in real life. Thus, the visitor can view the store first ten nurseries in a row, and then twenty-five living rooms or dining rooms and so on.

Having estimated how a particular model looks in this interior, and choosing the right, the buyer will have to go for it to the warehouse. The convenient packages he transports furniture unit to his home and collect it there on their own, by reading the instructions are clear and sensible.

Out of IKEA on the international market

Once this success at home IKEA is nothing to do but to explore overseas markets. Decisions were made spontaneously. For example, the head of the company hesitated for a long time: whether to open a store in Switzerland? The country was known for its conservative tastes, besides there are two well-deployed network of local furniture stores. But once Kamprad, walking in Zurich, I overheard a young couple. “ Beautiful chair !”– said the young woman, looking in the window.” But for us it is not affordable. Come buy it next year & raquo ;, – She answered her husband. This episode decided the whole thing. And soon there was IKEA in Switzerland (1973). And then in Germany, Austria, Great Britain, USA. In fact, except for Africa and Asia, IKEA is now present everywhere, including in China. But most of all the sales it provides exactly the European market.

In 1976, it began the development of the New World – IKEA store appeared in Canada. In 1981, the company opened its first store in Paris. Now in France, 10 stores IKEA, and is ahead of Sweden’s share of sales. True, a cheap Swedish furniture in France peculiar reputation. French apologizing to guests: “ We bought furniture IKEA – we have now money is tight “.

Since the early 90s the company is active in Eastern Europe. In Russia, the Swedes came at the invitation of Nikolai Ryzhkov. As in 1990, in Sweden on an official visit, the then Prime Minister of the Soviet Union hoped that IKEA has purchased products from the Russian furniture. Representatives of the company visited the then Soviet country and have decided that it is a sensible idea. However, the construction of a hypermarket brand began only in 1997 on the site of the Leningrad highway, and opened in 2000. First Moscow Megamall (150 thous. M & sup2 ;, investments – $ 200 million) was launched in late 2002. The complex is united in the same building more than 250 stores of goods and services, not only to form a global shopping center, but also bringing IKEA profits from the rental of retail space. Today, the company works with about 30 Russian factories scattered across the country, and its stores have almost all major Russian cities – Kazan, Yekaterinburg, Nizhny Novgorod, Rostov-on-Don, Novosibirsk, Krasnodar, Omsk, Samara, Ufa & hellip;

My investment in Russia are perhaps the most striking example of how I can tolerate failure. Our plan was no error. However, our own sluggishness in conjunction with the activity of the Russian mafia and irresistible Soviet bureaucracy all derailed. According to the financial report, we lost about 12,5-15,5 million. However, I do not think it’s lost time

Status Ingvar Kamprad according to Forbes in 2008 was estimated at 23 billion dollars, but for some reason, in 2011 the same Forbes estimated the furniture industry giant only 6 billion, while calling it a major failure of the year. But as of March 5, 2012 Ingvar among the five richest Europeans, and his condition was rated by more than $ 40 billion.

The continued existence of IKEA can not be called serene: an aging population in developed countries does not feel proper delight of “simple, modern”design in the market actively promoted rivals with similar products: Italian Argos, Danish Ilva. In addition, the traditional trade threatens the booming online shopping. However, it is not afraid of Ingvar Kamprad, his essential stores offer the buyer anything visual and tactile sensations and the real pleasure of hanging out. The rest of”threats” IKEA opposes an unprecedented emotional response in the hearts of millions of customers around the world. And this, according to the guidelines IKEA, more important indicators of market share.

Family Ingvar Kamprad

If family support that person became a businessman in his youth, when his peers spent their time at the dance. His first customers were the closest relatives: mother, father, grandmother and aunt. He could rely on them, rely on them for help when his business began to grow and had someone send packaging, answer the phone and deal with complaints. His house was the office, and the office has become a home. Farm turned to the boy in a business venture, where his father led the daily business, and my mother was preparing coffee. So the family has become a firm, so there is nothing surprising in the fact that he subsequently began to refer to his company as a family.

My mom was a real humble heroine. She got cancer when she was not yet fifty, and died at the age of fifty-three years old, when I was 37. A few years later I started a fund for cancer research. Businessmen from Älmhult list in this fund contributions every Christmas “.

With his first wife Kerstin Uodling, Ingvar not divorced and lived for three years.

We got married very early. My wife worked as a secretary at the Swedish radio. We spent a few happy years, Kerstin was very helpful to me in the early years. But she was not too pleased that I gave all the forces work and the company. She wanted a different life. So gradually we started to drift apart. We thought that this is due to the fact that we have no children. Then we adopted a little Swedish girl in the hope that it will bring us together. But it was only a short postponement. When we finally decided to break up, I took it as a personal failure. After the divorce, the wife demanded so much that even her lawyer was surprised. In the end, we agreed on a reasonable amount, but from all that I have left an unpleasant aftertaste. em> .»

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As for Mathias, then finally his position is not defined, but still, in the words of his father, he may in the future take the place of Anders Dalviga, president of IKEA. How old Kamprad fears that fighting could break up the children he created the world? Ingka, p>

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Interesting facts

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