Ikea Stocks Go

The modern brand of furniture and home goods Ikea is known all over the world. The company successfully operates in more than 50 countries. Already in 2008, Ikea became the world's largest furniture retailer. The success story draws attention and raises the question, is it possible to invest in this business?

Unfortunately, Ikea shares are not publicly traded yet. You won't find them on any stock exchange. And the company has been following this policy since its inception. However, despite the fact that the company did not conduct an IPO, it is a closed joint stock company. And if desired, private investors can buy IKEA shares through IKEA Stocks Go.

What Is Ikea?

Ikea is one of the leading furniture and home goods retailers. The main difference from competitors is that the company's stores offer a wide selection of furniture for any budget: from inexpensive cabinet products that are easy to assemble at home with your own hands, to exclusive samples for true connoisseurs of comfort.

Ikea is demonstrating a very successful business strategy based on the affordability of affordable solutions through smart vertical integration of its own resources and global supply chain. In the business world, Ikea's success has led to a large number of copycats vying with the company for market share in different countries – in some cases quite successfully.
However, Ikea's growth continues despite competition and crises. The company is dynamically managed, so a decrease in sales in one country's market is easily offset by growth in other countries.

Ikea’s Origin 

According to legend, the founder of the company, Ingvar Kamprad, had a dream about the furniture business in 1943, when he was 17 years old. After some time, he decided to implement the idea. And in five years, the business turned from a small mail delivery company into a successful furniture sales company that operated all over Sweden. The brand's first store opened in 1958, when it was called Möbel-IKEA. The first part of the name means "furniture", the second is an acronym composed of the initials of the founder's name (IK), the name of the family farm Elmtaryd (E) and the name of the nearest village Agunnaryd (A).

In the 60s of the XX century, Ikea stores appeared in Denmark and Norway. In the next two decades, the business spread throughout Europe. The company came to the USA in 1985, and today there are 51 Ikea stores in the United States, and the country itself is considered one of the very important sales markets.

Ikea's phenomenal growth is astonishing and of constant interest:

• In 2021, there were 422 Ikea branded stores in different countries.
• Annual revenue of the company is about 42 billion euros.
• Net profit in 2022 amounted to 710 billion euros.
• The peak profit was in 2016 – 4.2 billion euros.
• IKEA employs 231,000 people.

The Covid-19 pandemic has negatively affected the company's business model, but this can only be judged by profit indicators, since all Ikea divisions are privately owned, so the financial side of the company's work can hardly be called transparent.

How Does Ikea Work?

The Ikea brand has remained true to its original selling proposition from its inception to this day – simplicity of design, low cost and products available for self-assembly.

Most of the goods presented in Ikea are produced by the company itself. But the formats of the brand's stores, as a rule, also include cafes and restaurants, groceries, and various household items.

Ikea is considered an inexpensive supplier of quality furniture, primarily aimed at middle-class buyers who appreciate low prices and a large assortment.

Why Are Ikea Assets Not Publicly Traded and What Is IKEA Stocks Go?

Ikea founder Ingvar Kamprad opted out of a public offering from the start and sought to keep Ikea's business model concept in the international market while retaining full control of all assets. To attract initial capital and further develop the brand, he developed an effective franchise system. Ingvar Kamprad died in 2018 at the age of 91 as a billionaire.

The ownership structure at Ikea is extremely complex. This allows the company to provide privacy, reduce taxes, in many cases act as a non-profit organization, and protect against potential hostile takeovers.

The owner of the company's shares was the INGKA fund, founded by the owners of Ikea in 1982 to protect assets and in case of a possible takeover of the business by another company. The board of the fund includes members of the family of Ingvar Kamprad, and Ikea shares themselves have never been listed on the stock market during the entire existence of the brand.

Ikea is headquartered in the Netherlands. Today, a significant part of the holding's shares is owned by two funds created by the Kamprad family – Interogo and INGKA Holdings BV. The first is directly a fund, the second is collecting fees for the franchise. There are other organizations under the auspices of the company that deal with intellectual property and philanthropy.

Markets Where IKEA Stocks Go Operates

The main activity of Ikea is the furniture market. The Covid-19 pandemic has visibly devastated it, causing shock and a series of bankruptcies in all countries of the world. Already in 2022, the industry managed to return to the pre-crisis level of sales and restored the growth dynamics.

In 2022, the annual turnover of the world market reached 557 billion dollars, by 2025 it is expected to reach the level of 653 billion dollars, and by 2027 – 726 billion dollars. Covid hit sales of office furniture especially noticeably. But the industry has made up for it by promoting more products through e-commerce channels.

Experts note that new trends in the industry will be as follows:

Companies that adhere to the principle of using sustainability in the production of their own product line will win.
Emphasis on exclusive design and luxury will also win.
Firms will focus on marketing with discount coupons and electronic sales channels.

Ikea is also increasing its social media presence, investing in email marketing, and making notable progress in this direction. In fiscal 2022, the company's website was visited by more than 4 billion people. And, although the figure has decreased slightly compared to the period of the pandemic, the figure is impressive, and the company is investing in expanding the audience.

Alternatives for Investment and Earnings

The ability to buy shares of the company through IKEA Stocks Go somewhat limits the possibilities for financial investments. The service is more suitable for investors who seek long-term investments. Since IKEA shares are not listed at open auction, you will not be able to actively earn on trading and fluctuations in the price of securities here.

There are successful Ikea competitors that are traded on the stock exchanges, have a strong brand and are worthy of the attention of those who want to earn money through investments in the furniture industry:

Wayfair. The company is one of the leaders in online sales of household goods and household appliances. In the US, it occupies 33% of the market (in this segment, Ikea is 2% behind). Wayfair's revenue in 2020 exceeded $14 billion and its profit for the same period exceeded $9 billion.

Amazon. A well-known e-commerce giant that is rightfully considered the largest online retailer. Offers a wide range of goods and services. Amazon added furniture products to its lineup in 2017. In this area, it occupies 30% of the market in the United States.

Tesco. The company has 4600 stores in 11 different countries - mainly in Europe and the UK. In this region, Tesco competes directly with Ikea. The company's total revenue in 2021 was 53 billion pounds, with a net profit of 8 billion dollars.

American Woodmark. American furniture retailer with a focus on the domestic market. Offers mass production and custom-made products. Revenue in 2022 has already reached $ 2 billion, and the company is preparing to enter the global market.

There are other major players in the furniture market in different countries. Analyzing their investment attractiveness, experienced traders study not only the achievements of the companies themselves, but also their competitors. This is where Ikea data always comes in handy, as the brand has demonstrated amazing resilience. And the increase and decrease in Ikea profits is an indicator of how the furniture market is developing in different countries.
conclusions

Ikea is one of the world leaders in the furniture market, which is represented in 50 countries of the world and is constantly expanding its presence both in the form of offline stores, the blue and yellow colors of which are familiar to many, and in the field of e-commerce.

The company demonstrates stable growth and high resistance to market fluctuations associated with various factors. Its indicators are often guided by investors who choose where in the furniture industry it is worth investing today.

Unfortunately, Ikea shares remain unavailable for trading today, as they are not traded on stock exchanges. But the business world is watching the owners of Ikea with interest. There are many cases when, after the death of the founder of the company, the business model changed for many reasons.

The IKEA Stocks Go project is already available to investors, which allows them to profit from investing in this successful business. And if Ikea shares become freely available, we will definitely notify you about this