IKEA’s innovative furniture designs and various space-saving products attract customers from all over the world. Additionally, the unique furniture attracts customers living in vastly different styles of homes or apartments. But is there a particular target market that IKEA tries to sell to more often?
What Is The Target Market For IKEA?
IKEA’s target consumers are middle-class people between 20 and 34. This age and salary bracket is most concerned with buying stylish, contemporary, quality furniture at the best price possible, precisely the type of furniture that IKEA sells. Additionally, men and women frequent IKEA at similar rates.
To learn more details about the target market at IKEA and how IKEA develops customer loyalty, keep on reading!
What Is The Salary Of IKEA’s Target Market?
IKEA’s primary salary bracket that they target is the global middle-class consumer (averaging $35k – $80k salary). This salary bracket wants to get the most for their money because they work hard and spend their wages on quality items.
Middle-class consumers search for quality furniture at the lowest possible price. Additionally, this group is willing to pay more for durable furniture that will last several years.
IKEA’s low prices on stylish furniture are the primary reason the company has expanded and made a global presence.
How Old Is IKEA’s Target Market?
The age bracket that IKEA targets is consumers between 20 and 34. After people reach age 34, the number of people who shop at IKEA drops dramatically.
IKEA attracts younger consumers because of the contemporary designs of their furniture and the low prices they offer.
This age bracket is at the beginning of their adult life, and they are looking to save some money as they move into their apartment or first home.
IKEA can offer furniture designs that consumers in this age are looking for at prices their competitors cannot beat.
What Type Of Shoppers Does IKEA Target?
IKEA uses a mono-segment position when focusing on the ideal customer.
This marketing position focuses on advertising and targeting cost-conscious consumers who prefer to get the most value for their money.
This marketing strategy is why younger generations with a middle-class income status are the most popular consumers to visit the store.
What Gender Shops At IKEA More?
When it comes to which gender shops at IKEA more often, the numbers are pretty evenly split.
However, in terms of which gender is quicker at putting IKEA furniture together, men can complete the task quicker than women.
Additionally, men and women visit similar stores to search for furniture.
However, stores that promote a DIY furniture and home decor approach, like Home Depot and Lowes, are more often visited by men than women.
Where Do A Majority Of IKEA Customers Live?
Out of their total 445 locations, there are 50 IKEA stores located in the United States, the second-largest store count.
The country that leads in terms of IKEA stores is Germany, which has 53 stores.
Because IKEA was founded in Sweden, most stores (70%) are spread out across Europe.
However, regarding which areas in the United States are most popular for IKEA stores, the top 5 states with the most significant customer volume are Oregon, Utah, Kansas, Minnesota, and California.
Market analysts attribute these states with the highest customer volume to their natural fit when it comes to the lifestyle of the consumers.
So, essentially, IKEA’s customer base is pretty spread out worldwide, and the company hopes to expand to even more countries soon!
Are IKEA Customers Loyal To The Company?
Now that you know what the target IKEA consumer looks like, you may be wondering if the IKEA customer base is loyal to the company. For example, do people who shop at IKEA repeatedly revisit the store to purchase products?
IKEA offers several services and deals to attract customers over the long run. For example, IKEA stores in the United States have created loyalty-driven credit cards.
This Visa credit card lets customers earn points on IKEA purchases and other everyday purchases like gasoline, groceries, and utility bills.
Cardholders earn 5% cashback on all IKEA purchases, Traemand kitchen installation, and TaskRabbit assembly services.
Additionally, IKEA credit cardholders earn 3% cash back on dining, grocery, and utility purchases and 1% cash back on all other purchases. IKEA also offers other services designed to keep customers coming back.
Lower Shipping Costs
IKEA offers standard shipping rates for different product categories. For example, small items ship at $9, and more oversized items cost $29.
However, delivery charges vary based on where you live but are the same regardless of the product size and weight.
Click And Collect
Last year, IKEA introduced a Click And Collect service, allowing customers to purchase products online and pick them up in-store at their convenience.
This service enables customers to skip checkout lines and save time by avoiding searching for in-store products. The Click And Collect service costs $5.
However, IKEA gives you a $5 IKEA gift card when you pick up your item, so the service fee cancels out.
At Home Assembly Service
IKEA acquired a platform called TaskRabbit, a network of on-demand professional Taskers that allows customers to connect with their needed services.
For example, Taskers help with product assembly and installation and sometimes even teach you how to use the product.
So, if you need help putting your IKEA furniture together or require assistance getting the product into your home, TaskRabbit has covered you!
How Many IKEA Stores Are There?
IKEA currently operates over 400 stores around the world. Originally founded in Sweden by a 17-year-old entrepreneur, Ingvar Kamprad, in 1943, about 70% of IKEA’s stores are in Europe.
However, about 14% of the IKEA sales are generated in the United States. The country with the highest sales is Germany, which accounts for 15% of the company’s sales.
As of 2018, IKEA reported over 900 million store visits and about 2.5 billion visits to the store’s online site.
Is IKEA Expanding To Different Markets?
Although IKEA currently operates stores in Europe, the United States, and Canada, the store still plans to expand to more markets.
For example, IKEA wants to move into 12 new markets and gain 3 billion customers by 2025. IKEA plans to reach their projected goals by opening up stores in various South American locations.
Now that you know about IKEA’s target market, you can also check our related posts on some interesting IKEA facts, is IKEA is ethical, and IKEA’s 9 competitive advantages.
