IKEA: American Microcosm?

Ironic? Yes. Surprising? No. The question is how a Swedish company figured out consumers so well when other American operations struggle to retain their market share.

Hell bent on reclaiming the living room from my children, I was determined to redesign and upgrade my child-triggered-tornado danger zone. Lofty dreams of an adult-friendly space were hampered by a restrictive budget. The solution: IKEA.

Jeff and I made the forty-five minute trek to the IKEA in Emeryville yesterday. As I wandered through the sample living rooms, kitchens, and bedrooms, my attention shifted from the furniture and decorative accessories to the unique clientele.

Parents with children could be overheard discussing budgets and options while more mature customers, wearing attire fresh from New York runways and bejeweled in gold necklaces and fancy watches, sought high-quality, chic designs. The store’s offering ranges in value and cost to meet pretty much any budget and home need.

IKEA’s true understanding of American capitalism lies in the layout of their store. Reminiscent of Oz’s yellow brick road, the main path through the store is marked with yellow arrows pointing you in the “right” direction which happens to wind through every department. Don’t think about exiting the main road or you’ll spend a good 20 minutes on a detour trying to find your way back. The scenic route through their entire product offering, which can easily fill a football field, leaves you feeling tired and disoriented. But then, just as you’re about to collapse from exhaustion and regretting forgetting to ask how your ruby slippers work in case you need to escape, the path clears to the entrance of IKEA’s cafeteria. The aroma of freshly baked cinnamon rolls and coffee are too enticing to resist. You promise yourself you’ll only sit for a few minutes to catch your breath.

And they’ve got you.

With furnishings to meet any budget, kiddie play areas and babysitting on-site, and restaurant quality food at half the cost, IKEA caters to consumers of every class, ethnicity, and background. Unlike many retailers who thrive on niche markets (low end = WalMart; mid-tier = Macy’s; high end = Neiman Marcus), IKEA figured out how home furnishings can appeal to everyone. The answer lies in customer service, quality levels with reasonable costs, and simple, European designs.

I didn’t intend this post to turn into an IKEA ad, but I was remarkably impressed not only by the store’s diverse customer base but also its ability to “trick” customers into shopping. After all, the cost of a $1.49 candle here and a $7.64 breakfast for two there added to a new bookcase adds up fairly quickly. Smart marketing.

Did I find the Emerald City? Yup. And I left my wallet there too.