Transform Your Sales Process with Digital Transformation Sales

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There s no doubt that the humble roots of the world s largest furniture retailer will go down in business history. The legendary IKEA was founded in Sweden in 1943 by 17-year-old entrepreneur Ingvar Kamprad. After 15 years in mail-order sales, he opened the first IKEA retail store in lmhult, Sm land. But it wasn t until the 70s and 80s that the number of IKEA stores mushroomed globally as the brand reached Switzerland, Japan, Australia, Canada, Hong Kong, Singapore, the U.S., the U.K., France, Spain, and Italy. Around the time of his death some 60 years after IKEA opened its doors to the world, Kamprad was estimated to be worth US$58.7 billion making him the 8th richest person on the planet. Although he remains a Steve Jobs-like figure at the company s headquarters in lmhult, Sweden, the company has gone through many changes. So many that you d never suspect it responsible for a record $44 billion in sales in 2018. After it acquired the on-demand platform, Task Rabbit to help solve the problem of putting its furniture together, the company has only incorporated more technological advancements since. So how is this humble company adjusting to the fast paced technological world? How are they incorporating tech into their brand and consumership? We ll talk about all that and more in today s video. Let s jump right in. IKEA is as well known for early leadership in sustainability as it is for the Swedish meatballs in their in-store cafeterias. Back in the 90s, the company consulted with Karl-Henrik Rob rt, the founder of the environmental non-profit the Natural Step, to help shape what was to become the IKEA Environmental Action Plan. Recently the company announced a $2.8 billion investment in renewable energy infrastructure and has the aim of making its entire supply chain climate positive by 2030. The latest innovation from the retail giant is a new take on an old problem for many buyers. Now customers can envision how furniture will look-and fit-once it is assembled at home. Dubbed IKEA Place, the iPhone- and iPad-compatible free application features realistically-rendered, true-to-scale 3D products. Alongside early adopters such as pure-play online retailer MADE.com, IKEA has been offering an augmented reality (AR) component to their mobile application, which superimposes a 3D modeled piece of furniture onto a viewfinder of your smartphone s camera. But they didn t just end there. With IKEA s acquisition of Geomagical Labs, they take the capability to design your home a lot further. IKEA confirmed that they wanted to bring the many possibilities of room design to as many people as possible. In fact, IKEA liked the technology from Geomagical Lab so much that they bought the company. In light of the coronavirus pandemic, this move proved to be incredibly precise. As many IKEA stores were closed, the Geomagical Labs technology allowed customers to perfect their home designs during the lockdown, and then order furniture which is delivered contact-free. The technology works by analyzing a series of panoramic photos from your mobile phone to create a 3D virtual replica of a room algorithmically using AI. It also creates 3D models of the existing furniture, which can then be individually moved or replaced alongside 3D modeled items from the IKEA catalog. The room can be emptied to help you design it the way you like, you can just delete all of the existing furniture. Every 3D object is independent of the other objects. For example, you can take out your existing sofa and audition a new one from the IKEA catalog. The 3D models enable you to visualize the room in photographic quality, to change configurations and to try different models. Back in 1960, the IKEA catalog offered a service where designers would produce visual sketches of their home together with their new furniture. Now, AR and the Geomagical Labs technology can bring this capability to anyone with a smartphone. The company has taken a user-centric approach to how it s customers data is used, in line with the IKEA customer data promise based on respect for people and their privacy. This is super intuitive for the customer, enabling them to try different combinations of price, style and dimensions from the comfort of their own home. IKEA understands that when people are happy with their design, they can seamlessly order the items. Before we continue, if you ve enjoyed this video, please let us know by clicking the like button. Subscribe to the channel if you haven t already, and turn on the bell notification so you never miss an upload. For almost 80 years, IKEA has been in the very analogue business of selling its distinct brand of home goods to people. With the help of technology incorporated in their brand, IKEA has been able to triple ecommerce levels in three years. With the pandemic and with the closure of approximately 75% of stores worldwide, IKEA was able to ramp up and accelerate even more as people turned online and towards digital solutions. Things that would normally take years or months were carried out within days and weeks. This was able to be fulfilled because they transformed their stores to also act as fulfillment centers. They were able to accomplish this by changing the flow of goods and the supply mechanisms. E-Commerce is open 24 hours a day, while traditional stores are not, which means they have the chance needed to learn how to operate at two speeds, while operating from one space. Goods are also delivered from the stores, or from different distribution centers. Algorithms are in place which also help to figure out where the goods are being sourced from. IKEA is also rapidly expanding data and analytics and changing how they re embedded in decision making. Digital transformation is not a goal in and of itself, and it is so much more than technology. IKEA is focused on transforming their business by exploring potential new offers to customers and new ways to bring those offers to their consumership. If they want to continue their long streak of success, they understand that the digital side of business needs to be embedded in every aspect of IKEA. While incorporating new ways to operate the business, IKEA definitely understands that going digital is a way of working, making decisions, and managing the company. And with that, we ve come to the end of this video. If you enjoyed this video, please let us know by smashing the like button below. Leave a comment if you learned anything in this video. Thank you very much for watching. Catch you guys in the next video.