Ikea is private company that sells and distributes home products that are low priced with a twist, you put them together yourself. This concept has taken Ikea to the forefront as a leader in the industry since 1943 when they were created by founder Ingvar Kamprad in Sweden. Ikea furniture is very well known for its modern design and easy to assemble design which saves consumer money from having the pre assembled models shipped.
One big example of this is having a bookcase shipped pre assembled costs a lot more than having one that you assembled shipped. One of the other main reasons as many European's use mass transit which makes it easier for them to transport these products to their homes. This is also very big in the European block, but just finding mild appeal in the United States. This could change as they open more stores and introduce the concept more to American's. There are currently only 33 Ikea stores in the United States so getting this type of furniture has been tough for most.
Having to assemble furniture is nothing new for American's as many products today state some assembly required. The biggest problem with Ikea is there just aren't enough stores around for them to make a bigger impact just yet. Some of the products they offer are garden furniture, coffee tables, bookshelves, hall furniture, dining tables, children's items and so forth. One of the biggest things that it has confronted is a society such as the United States that values their time and hate putting things together. This could explain the slow growth in the United States. The other big reason they have probably struggled is how they have their corporate structure. It's designed in a way to avoid taxes by funneling profits to a nonprofit organization which in the United States would be watched very carefully. I think this could have a lot to do with their slow growth as well.
The Ikea concept has worked well in European countries where an assembly thing is something they are use to and actually enjoy doing. Ikea products are well designed and available in a catalog if you so desire to order any products. They have a vast collection of items at good prices. In the future we may see more of these stores being built as demand for their products grow. The demand for quality furniture priced reasonably has always been something everyone is interested in.
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