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? For example, how old is the target consumer that shops at IKEA?
Here is everything about IKEA’s target market that I have discovered through my research!
What Is The Target Market For IKEA In [currentyear]?
IKEA’s target consumer is middle-class people between the ages of 20 and 34 as of [currentyear]. This age and salary bracket are most concerned with buying stylish, contemporary, quality furniture at the best price possible, which is precisely the type of furniture 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 a little more for durable furniture that will last for several years.
IKEA’s low prices on stylish furniture is the primary reason the company has been able to expand and make a global presence.
How Old Is IKEA’s Target Market?
The age bracket that IKEA targets are consumers between the ages of 20 and 34. After people reach the age of 34, the numbers that shop at IKEA drop off dramatically.
IKEA attracts the younger consumer 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 the furniture designs this age of consumers is looking for at prices their competitors cannot beat.
What Type Of Shoppers Does IKEA Target?
IKEA uses a mono-segment position when it comes to focusing on the ideal customer.
This marketing position focuses on advertising and targeting consumers who are cost-conscious and prefer to get the most value for their money.
This marketing strategy is the reason why younger generations with a middle-class income status are the most popular consumer 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 are able to complete the task quicker than women do on average.
Additionally, men and women visit similar stores to search for furniture.
But stores that promote a DIY approach to furniture and home decors, 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, which is the second-largest store count.
The country that leads in terms of IKEA stores in Germany, which has 53 stores.
Because IKEA was founded in Sweden, a majority of the stores (70%) are spread out across Europe.
However, when it comes to 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 because of a natural fit when it comes to the lifestyle of the consumers.
So, essentially IKEA’s customer base is pretty spread out across the world, and the company is hoping to expand to even more countries in the near future!
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 revisit the store multiple times to purchase products?
IKEA offers a number of services and deals intended to draw in customers over the long run. For example, IKEA stores in the United States created a loyalty-driven credit card.
This Visa credit card allows customers to earn points on IKEA purchases and other everyday purchases like gasoline, groceries, and even 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 a rate of $9, and more oversized items have a shipping rate of $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, which allows customers to purchase products online and pick them up in-store at their own convenience.
This service enables customers to skip the checkout lines and save some time by avoiding searching for products in-store. 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 the services they need.
For example, Taskers help with product assembly, installation and sometimes can 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 got you covered!
How Many IKEA Stores Are There?
IKEA currently operates over 400 stores around the world. Originally founded in Sweden by a young, 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 on expanding to more markets in the future.
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.
Customers that fall into the middle-class wage bracket and are between the ages of 20 and 34 are IKEA’s target market. Additionally, both genders visit IKEA at essentially the same rate.
IKEA has over 400 stores around the world and is primarily based in Europe. However, the IKEA stores in the United States generate a significant part of the company’s revenue.