1695904482 The Ikea effect lands in Bogota

The “Ikea effect” lands in Bogotá

The translation of the Swedish word ömsesidig means “mutual” or “reciprocal” in English. It is also the name that Ikea has chosen for the first collection that the Swedish company will make available to its customers from Thursday lunchtime, when they open the doors of their first warehouse in Bogotá. It is a concept that combines low prices and Nordic design furniture: functional products designed for small spaces and easy to assemble and disassemble. However, landing the popular chain in Latin America wasn’t easy. And reception in the Dominican Republic (2010), Puerto Rico (2021), Mexico (2021) and Chile (2022), the first stops in the region, was more timid than the brand’s followers predicted.

The dean of the Faculty of Architecture at the University of Finis Terrae in Chile, Felipe Assadi, says that logistical errors are mixed with idiosyncratic features in his country. Remember that Ikea opened its first store in Santiago in August 2022: “It opened badly. Without fanfare, in a small shop that had almost nothing for a long time. Then they opened a much larger one on the sidelines, but the damage to the Ikea effect was already done.” Assadi was one of the four Chilean designers who contributed a candle lamp to the catalog that accompanied this launch.

Construction workers are doing the final work before the inauguration.Construction workers do the final work before the inauguration.Chelo Camacho

It took a long time for the collection that Ikea is presenting this Thursday in Colombia with more than 20 products to reach the Southern Cone. The social presentation of the Swedish company founded in 1943 has “lost its grace”, says Assadi, without the accompaniment of an essential element for joining a new continent such as the contribution of local artists and designers: “This collection did not reach Chile.” the sobriety distances itself from Ikea and largely saves the colors of the most popular regions on the continent. Very linked to the festival, the celebration and a series of folkloric rites,” explains the dean.

According to the scientist, another obstacle to starting a business is related to a certain bias among Chilean consumers towards a store that advertises really low prices. There is some fear, supported by the experience of modest local manufacturing, that cheap products could end up being expensive, he says. In his opinion, this is a distortion of reality, because the invoice for Ikea products usually shows “optimal overall quality”. “I have things from Ikea from 20 years ago in very good condition.”

People walk through the store the day before it opens.A day before the opening, people walk through the store.Chelo Camacho

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In the case of Mexico, the first obstacle was the health crisis. The restrictions pushed the original launch date, planned for October 2020, to April 2021. When the project got underway, Mexican designer Álex Rodríguez said Ikea’s marketing strategy caused great concern in the local manufacturing sector.

“Philosophically speaking, Ikea represents a large part of what we do not share,” says the owner of the La Metropolitana furniture store. He points to the fact that a significant part of the Swedish giant’s products are made in China: “In fact, its introduction has helped to bring quality to the fore. About the solid wood we use. “A lot of people stay with us and don’t go because they use a lot of agglomerated materials that are painted white to make them look nicer.”

In his view, the Nordic company has also failed to calibrate its fees. “Prices are relatively low, but this is a region with very different social classes and a public, in the Mexican case, increasingly interested in promoting local design.” With more than 422 stores around the world, the first Fears of local producers like Rodríguez evaporated: “The truth is that they didn’t eat anything from our market.”

An investigation by the Peruvian portal Ojo Público goes even further and supports certain reservations about the “arrival of the world’s most important wood consumer” on a continent that is in a phase of retreat to preserve its forests. “Given the unresolved scandals in Europe, Ikea’s entry into huge new markets in Latin America is worrying,” Earthsight researcher Tara Ganesh told Peruvian media. His environmental organization had denounced in 2021 that Ikea was supplying the European market with furniture made from wood from illegal logging in Russia.

A man scans the labels of some furniture with his cell phone.A man scans the labels of some furniture with his cell phone. Chelo Camacho

The answer from the London headquarters of the company founded by Ingvar Kamprad (1926-2018) came immediately: “Ikea suppliers procure raw materials and manufacture products in many countries and regions of the world.” We do not specify the origin of the material for specific products , as this may vary depending on time and availability. However, we require all suppliers to source wood from more sustainable sources that meet our requirements: Forest Stewardship Council (FSC) certified or recycled wood,” says the Ojo Público investigation.

In fact, Peru will be the next country to welcome the company. A file that completes the landing of the multinational in Latin America. With a strong involvement of the Chilean Falabella – strong in Colombia and Peru – in its management and the challenge of seducing consumers in a region in the phase of economic recovery, the Nordic countries must resort to a cocktail that incorporates the ingenuity of their customers Designs with the most open facet of their social democracy.

Rows of IKEA shopping carts at the first Colombian store on September 27.Rows of IKEA shopping carts at the first Colombian store on September 27. Chelo Camacho

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