IKEA: Many companies, one brand
The IKEA Concept is the core asset of Inter IKEA Group and its franchising operation. The overall purpose of Inter IKEA Group is to secure continuous improvement, development, expansion and a long life of the IKEA Concept. This will require investments in both good and bad times.
Since May, 2016, there are separate holding companies and management teams for the IKEA related business and the investment business, previously part of Inter IKEA Group. The reason for this change is to enhance business focus and efficiency. Inter IKEA Holding B.V. (located in the Netherlands), is the new holding company for all IKEA related businesses.
The holding company of the investment business, Interogo Holding AG was established in Switzerland in 2016.
Different companies operating under the IKEA trademarks
Around the globe, a large number of companies operate under the IKEA trademarks. All IKEA franchisees are independent of Inter IKEA Group. A large group of franchisees are owned and operated by INGKA Group. Inter IKEA Group and INGKA Group have the same founder, and a common history and heritage, but have operated under different owners and management since the 1980s.
The new Inter IKEA Group
To improve the IKEA franchise system and clarify roles, IKEA range, supply and production activities transferred to the new Inter IKEA Group headed by Inter IKEA Holding B.V. The ownership changes came into effect on 31 August 2016. The Inter IKEA Group is now composed of three core businesses – franchising, range and supply and industry.
The entities will work together to build a stronger franchise system. To build an even better IKEA offer together with retailers and suppliers based on existing and new strengths in our value chain. The aim is also to provide franchisees with best possible conditions for implementing and operating the IKEA Concept, and to create a strong platform for future expansion and growth.
Inter IKEA Systems B.V. is the franchisor and the owner of the IKEA Concept, including the IKEA trademarks. Inter IKEA Systems B.V. franchises systems, methods and proven solutions to franchisees worldwide for the sale of IKEA products under the IKEA trademarks. Inter IKEA Systems has the assignment to continuously develop the IKEA Concept and to ensure its successful implementation in existing and new markets. The IKEA Concept rests on a firm foundation: a low-price offer in home furnishings. The three main components of the IKEA Concept are the IKEA product range; efficient systems, methods and proven solutions for marketing and sales; and the IKEA symbols, of which the most important are the IKEA trademarks.
Franchising has been found to be the best way to expand the business based on the IKEA Concept, to keep the concept together and to maintain an entrepreneurial spirit. IKEA franchisees implement the IKEA Concept by marketing and selling the IKEA product range. With the exception of the IKEA Delft store, all IKEA stores operate under franchise agreements with Inter IKEA Systems B.V. The IKEA franchisee has the responsibility to run, manage and develop their local business.
IKEA Range & Supply
IKEA Range & Supply, is responsible for developing and supplying the global IKEA range. This means IKEA Range & Supply works with the value chain end to end from supplier to customer. From the needs and wants of the many people, through product development and the sourcing of raw materials, to a product’s end-of-life. Together with other units, IKEA Range & Supply is responsible for communicating the IKEA home furnishing offer.
IKEA Industry is the largest producer of wooden furniture in the world and manufactures wood-based furniture for IKEA customers. IKEA Industry secures production capacities for growth. The aim is to create outstanding customer value in terms of quality and price. At the same time, IKEA Industry aims to have a positive impact on the planet, using sustainable resources and producing more from less.
Holding and governance structure
The governance structure of the Inter IKEA Group was formed with two main considerations in mind.
Securing the growth and development opportunities of the group and the IKEA Concept.
Guaranteeing its independence and ability to maintain a long-term perspective.
Inter IKEA Holding B.V., located in the Netherlands, is the holding company for the new Inter IKEA Group. Torbjörn Lööf is the CEO. The management of Inter IKEA Holding B.V. is overseen by a Supervisory Board.
Anders Dahlvig, Chairman
Martin van Dam