IKEA

IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture such as beds, chairs, desks, appliances and home accessories. The company is the world's largest furniture retailer. Founded in Sweden in 1943 by 17-year-old Ingvar Kamprad, who later became one of the richest people in the world, the company's name is an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his hometown. The company is known for its modern architectural designs on various types of appliance and furniture, often associated with a simplified eco-friendly interior design. In addition, the firm is known for the attention it gives to cost control, operational details and continuous product development, allowing it to lower its prices by an average of two to three percent over the decade to 2010, while continuing its global expansion. The groups of companies that form IKEA are all controlled by INGKA Holding. , a Dutch corporation, which in turn is controlled by a tax-exempt, not-for-profit Dutch foundation. The IKEA trademark and concept is controlled by a series of corporations that can be traced to the Netherlands Antilles and to the Interogo Foundation in Liechtenstein. INGKA Holding B.V. owns the industrial group Swedwood, which sources the manufacturing of IKEA furniture, the sales companies that run IKEA stores, as well as purchasing and supply functions, and IKEA of Sweden, which is responsible for the design and development of products in the IKEA range. INGKA Holding B.V. is wholly owned by Stichting INGKA Foundation, which is a non-profit foundation registered in Delft, Netherlands. The European logistics centre is located in Dortmund, Germany, and the Asian logistics centre is located in Singapore. Inter IKEA Systems B.V. in Delft, also in the Netherlands, owns the IKEA concept and trademark, and there is a franchising agreement with every IKEA store in the world. The INGKA Group (not to be confused with INGKA Holding B.V. ) is the biggest franchisee of Inter IKEA Systems B.V. Inter IKEA Systems B.V. is not owned by INGKA Holding B.V. , but by Inter IKEA Holding S.A. registered in Luxembourg, which in turn is controlled by the Interogo Foundation in Liechtenstein. Ingvar Kamprad has confirmed that this foundation is controlled by him and his family. The company which originated in Småland, Sweden, distributes its products through its retail outlets. As of October 2011, IKEA has 332 stores in 38 countries. In fiscal year 2010, it sold $23.1 billion worth of goods, a 7.7 percent increase over 2009. On February 17, 2011, IKEA announced its plans for a wind farm in Dalarna County, Sweden, furthering the furniture giant's goal of running on 100 percent renewable energy. In mid-August 2012, the company announced that it will be establishing a chain of 100 economy hotels in Europe but, unlike its few existing hotels in Scandinavia, they will not carry the Ikea name nor will they use Ikea furniture and furnishings - they will be operated by an unnamed international group of hoteliers. The IKEA website contains about 12,000 products and is the closest representation of the entire IKEA range. There were over 470 million visitors to the IKEA websites in the year from September 2007 to September 2008. IKEA is the world's third-largest consumer of wood, behind The Home Depot and Lowe's.