In Russia, Ikea has found the right vein: apartments from the Soviet era. With their concrete walls, their reduced common areas and very small areas, these are veritable gold mines for the furniture retailer. The reason? These accommodations are almost all identical.
According to Bloomberg, almost 60% of Russian citizens live in this type of apartment, initially designed to be temporary: a potential that has been exploited by the Swedish group, which launched in June 2019 a new feature called Kvartiroteka, specifically designed for this market.
Thanks to the uniformity of these dwellings, Ikea offers Russians to display online, from their home, a multitude of selection of interiors that scrupulously follow the plans of these dwellings from the Soviet era. In a few clicks, clients can view their accommodation plan and consult all the development options available to them.
Kvartiroteka, or the library of furniture in Soviet apartments. Creating diversity in the standard, in the world @IKEA_France Russian on-line version. https://t.co/TqMpq0xYtk #staging #standard #allthesamebutdifferent #digital pic.twitter.com/uOy4gzfqje
– Laure Pressac (@LaurePressac) February 19, 2020
In Russia, the service attracted 2.8 million Internet users to the Ikea site in the first six months, reports the media Fast Company. Building on this success, the operation could be adapted to other countries, notably in Germany, Poland and China, known to have the same architecture of the Communist period.
Chameleon brand
By mixing the rigor of communism and the opportunism of capitalism, Russia has become the second fastest growing market for Ikea, Bloomberg points out.
Through the Kvartiroteka functionality, the yellow and blue brand unveils two facets of its commercial strategy: on the one hand the brand is trying to stimulate its online sales, on the other it bends to local specificities.
Ikea has already proven in the past that it knew how to adapt to the habits and customs of the countries where it was established. In the United States, for example, the cabinets and beds offered by the chain are larger than in the rest of the world.
In China, the kitchens are smaller, while in India, the products are not to be assembled yourself, since DIY is not seen as a hobby and it remains the task of the servants. A service to assemble the furniture is therefore offered to customers.
As the service for the Russian market shows, the group is also seeking to increase its online sales. Slightly behind in this market, Ikea finally saw its internet sales jump 43% in one year.
In addition to Russia, the German, British and French markets were particularly dynamic, which allowed the company to exceed 40 billion euros in sales between September 2018 and August 2019.
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