a n I K E A x a i r b n b e x p e r i e n c e

C O M P E T E N C I E S “The IKEA shopping experience was sort of fun and certainly worthwhile, with thoughtful design that provided a favorable impression of the brand and led me to buy more.”

G u s L u b i n , B u s i n e s s I n s i d e r

“IKEA [...] now �nds itself playing catch-up to more web-savvy rivals, racing to put more of its Lack co�ee tables and Billy shelving online.”

Hiroko Tabuchi, New York Times

How can we blend IKEA's physical showroom experience with their online experience?

B U S I N E S S P R O B L E MIKEA’s business problem is that their business model is less suited to online selling compared to other retailers, as it has mostly relies on shoppers visiting their physical showroom experience and collecting purchases themselves in-store. This has resulted in IKEA falling behind other furniture retailers in online sales

Ashley Furniture6.5%

IKEA9.0%

M a j o r P l a y e r s A l l O t h e r Fu r n i t u r e S t o r e s

P r o fi t$ 2 . 6 b

M a r k e t S i z e

M a j o r P l a y e r s

Williams-Sonoma15.3%

Wayfair9.9%

Overstock.com3.4%

IKEA~2%

A l l O t h e r Fu r n i t u r e S t o r e s

P r o fi t$ 9 7 3 m

M a r k e t S i z e

H O W C A N W E L E V E R A G E T H E S E O P P O R T U N I T I E S T O B R I N G P E O P L E T O I K E A ’ S O N L I N E W E B S I T E ?

I N S I G H T S People are moving to new cities for work and staying in short-term housing spaces while searching for a permanent home.

“IKEA is permeating Airbnb’s 1.5 million listings. Show me a one-bedroom riverfront apartment for rent in Klaipeda, Lithuania, and I’l l show you a Poang chair.”

J u l i e L a k s y , a c c l a i m e d j o u r n a l i s t ,e d i t o r a n d c r i t i c f o r i - D m a g a z i n e

P R O P O S A LIKEA Stay is a blend between a physical and digital showroom that allows people who are moving to a new city to visualize the way their homes could look and get a further understanding of what products work for them.

Feel free to explore all the IKEA products during your stay with airbnb.

Welcome, Joelle!

SWIPE UP TO CONTINUE

B e d , B a t h , a n d B e y o n d

Wa l m a r t

C r a t e & B a r r e l

Wa y f a i r

O v e r s t o c k . c o m

W i l l i a m s - S o n o m a

P r o d u c t C o n fi d e n c e

P r o d u c t U n c e r t a i n t y

E - C o m m e r c eB r i c k a n dM o r t a r I K E A

B e d , B a t h , a n d B e y o n d

Wa l m a r t

C r a t e & B a r r e l

Wa y f a i r

O v e r s t o c k . c o m

W i l l i a m s -S o n o m a

P r o d u c t C o n fi d e n c e

P r o d u c t U n c e r t a i n t y

B r i c k a n dM o r t a r

I K E A

E - C o m m e r c e

Moving to a new city for work in the tech industry

Looking to rent or buy a home

Desires a stylish home, but on a budget

Stays in short-term living solutions, such as airbnbs

D E M O G R A P H I C

C u s t o m e r F r i c t i o n s

I K E A S t a y S o l u t i o n s

B U Y E R ’ S R E M O R S ES T E R I L E

S H O W R O O M SD I F F I C U LT Y S T Y L I N G

F U R N I T U R EI N C O N V E N I E N T

I K E A L O C AT I O N S

T E S T & L I V E W I T H T H E I K E A P R O D U C T S

A U T H E N T I C , L I V E D - I N H O M E S

C O N T E X T W E B PA G E L E V E R A G I N G S E L E C TA I R B N B L O C AT I O N S

A I R B N B H O S T S

C A S U A L

Hosts who sublet their apartment from time to

time when they are out of town or away on holiday.

Hosts that appreciate having guests stay over in

their spare room. They enjoy the extra cash and

meeting new people.

H O B B Y

High-rated hosts that are experienced in renting out

their place. They have found income in running an Airbnb and are looking to expand to

more homes. They often purchase a place in order to renovate it into an Airbnb.

S E R I O U S

A I R B N B H O S T S

C A S U A L H O B B YS E R I O U S

Hosts who sublet their apartment from time to

time when they are out of town or away on holiday.

Hosts that appreciate having guests stay over in

their spare room. They enjoy the extra cash and

meeting new people.

High-rated hosts that are experienced in renting out

their place. They have found income in running an Airbnb and are looking to expand to

more homes. They often purchase a place in order to renovate it into an Airbnb.

A C C E S S T O A W O R L D W I D E C U S T O M E R N E T W O R K I N

U R B A N L O C AT I O N S

A F A S T E R R O I F O R O N L I N E P R E S E N C E , R E L AT I V E T O

I N - H O U S E W E B D E V E L O P M E N T

I N C R E A S E I N C U S T O M E R AT T E N T I O N A N D F L O W,

R E S U LT I N G I N I N C R E A S E D R E V E N U E A N D S A L E S

D I S C O U N T S O N I K E A F U R N I S H I N G S A N D A C C E S S T O I N T E R I O R D E S I G N C O N S U LTAT I O N F R O M I K E A , P R O V I D E D T H E Y A R E B O U N D T O A H O S T I N G A G R E E M E N T

A P P E A L S T O S E R I O U S A I R B N B H O S T S

M O R E A P P E A L I N G S PA C E S T O O F F E R

M U T U A L R E L A T I O N S H I P

A i r b n b

H o s t s

I K E A

Reaching new customer segments

Continued Cooperation

Product Discountsand Interior Design

C O R E E X P E R I E N C E Sdig i ta l : web & tab let

1. Discover

2. Engage

3. Explore

T O U C H P O I N T S

CHANNELS

web

tablet

l ive

[PRE-SERVICE, BEFORE STAY]

AIRBNB IKEA

[POST SERVICE, AFTER STAY]

Receive emailinvitation to web

experience

Explore productsin new contexts

[SERVICE, DURING STAY]

Live in IKEA Stayand try out products

Our platform builds on the current IKEA touchpoints, but more speci�cally creates a new engaging experience and focuses on purchases in the service and post service experience.

DISCOVER ENGAGE EXPLORE

Book IKEA Stay through airbnb website

Bookmark products, order now, or learn more

B O O K I N G I K E A S T AY DISCOVER

T A B L E T E X P E R I E N C E DISCOVER

F U T U R E I M P L I C A T I O N Snext steps

--- Measurability

--- Sector-Wide Implications

--- Conclusion

M E A S U R A B I L I T Y

Airbnb driven, IKEA website visits

IKEA driven visits to Airbnb’s website

General online tra�c and sales for IKEA website

Which products at airbnbs are most ‘bookmarked’

Number of Airbnbs using IKEA furniture

Sales of products used in IKEA Stay

S E C T O R - W I D E I M P L I C A T I O N S

IKEA Stay can be expanded to address the entirety of the furniture industry. Our idea can not only translate to IKEA furniture, but to other furniture or home stores as well. Collaborations could be built amongst airbnb and multiple companies.

IKEA Stay can also lead to IKEA developing their own airbnb system. So, instead of renting out spaces through airbnb, IKEA would have their own rental system established.

1. EXPAND TO OTHER RETAILERS 2. IKEA RENTAL SYSTEM

I N C R E A S E S O N L I N E S A L E SL E V E R A G E S A I R B N B G U E S T S ’ S TAY

R E F R E S H E S C ATA L O G U E O F I N S P I R AT I O N

B U I L D S U P M A R K E T

IKEA Stay moves people towards their online platform, now customers are drawn to the e-commerce and encouraged to order products online.

IKEA Stay creates an interest in an IKEA lifestyle by introducing potential customers to a home �lled with IKEA furniture and products. This makes the transition into the brand more inviting for customers.

IKEA Stay provides new ways to style homes through the airbnb context photos. This allows customers to see products in an authentic light, giving customers further reasons to purchase items.

IKEA items are placed inside airbnb homes, becoming a showroom you can live in, strengthening the brand’s vision of ‘creating the perfect home’ with customers.

C O N C L U S I O N

C I T A T I O N SAirbnb. http://www.airbnb.ca

Berger, W. (2009). Glimmer: How design can transform your life, and maybe even the world. New York: Penguin Press.

Bhatt, S. (2016). 5 things that make IKEA the world’s largest furniture retailer. Retrieved from http://brandequity.economictimes.indiatimes.com/news/business-of-brands/5-things-that-make-ikea-the-worlds-largest-furniture-retailer/51312916

Caulderwood, K. (2014, May 01). Retailers Need Not Fear "Showrooming" As More Young People Drawn To Physical Stores. Retrieved from http://www.ibtimes.com/retailers-need-not-fear-showrooming-more-young-people-drawn-physical-stores-1579135

IKEA: Home furnishings, kitchens, beds, sofas. http://www.ikea.ca

Kelley, D. *& Kelley, T. (2013). Creative Con�dence: Unleashing the Creative Potential Within Us All.

Lasky, J. (n.d.). Airbnb and Ikea Should Just Go Ahead and Merge, Already! Retrieved from http://www.travelandleisure.com/articles/airbnb-ikea-merger

Lawson, B. (2005). How designers think: Demystifying the design process. London: Routledge.

Loeb, W. (2012). IKEA Is A World Wide Wonder. Retrieved from http://www.forbes.com/sites/walterloeb/2012/12/05/ikea-is-a-world-wide-wonder/#4c3b493d36f4

Lubin, G. (2014, January 16). Why Shopping At IKEA Is A Magical Experience Like Nothing In The World. Retrieved from http://www.businessinsider.com/ikeas-amazing-store-design-2014-1

Marchesseault, K. (2015, January 13). Using Digital Marketing to Get Shoppers to Buy Furniture Online. Retrieved from http://www.blueport.com/blog/using-digital-marketing-to-get-shoppers-to-buy-furniture-online

Newbery, P., & Farnham, K. (2013). Experience design: A framework for integrating brand, experience, and value. Hoboken, New Jersey: John Wiley & Sons.

Palmer, T. (2016, January). Furniture Stores in the US: Market Research Report. Retrieved from http://www.ibisworld.com/industry/default.aspx?indid=1016

Ponder, N. (2013). Consumer attitudes and buying behavior for home furniture. Mississippi, Franklin Furniture Institute.

Ruiz, B. (2015, May). Online Household Furniture Sales in the US: Market Research Report. Retrieved from http://www.ibisworld.com/industry/online-household-furniture-sales.html

Stickdorn, M., & Schneider, J. (2011). This is service design thinking: Basics, tools, cases. Amsterdam: BIS Publ.

Tabuchi, H. (2015). As Pro�t Slows, Ikea Notes Need to Move Online. Retrieved from http://www.nytimes.com/2015/01/29/business/as-pro�t-slows-ikea-notes-need-to-move-online.html

Van Bodegraven, J. (2015, March 27). Future shopping is not about buying. Retrieved from https://medium.com/digital-experience-design/future-shopping-is-not-about-buying-7fdab998cd63

Walgrove, A. (2014). How IKEA Became Kings of Content Marketing. Retrieved from https://contently.com/strategist/2014/11/07/how-ikea-became-kings-of-content-marketing/

Spies, M. (2015). Branded Interactions: Creating the Digital Experience. London, UK: Thames & Hudson.