In her presentation at DELIVER Europe 2024, Marlein Wiertsema from IKEA’s Ingka Group subsidiary shared valuable insights on staying values-driven while adapting to changing consumer demands and the evolving retail landscape. With over 170,000 employees across the globe, Marlein's role focuses on development and innovation, essential components of IKEA’s enduring success in creating a better everyday life for many people.

Embracing Challenges and Innovation

Marlein began by drawing a parallel between innovation and climbing a mountain, referencing her personal experience scaling the Mont Ventoux mountain in France. She likened the steep, challenging climb to the uphill battle that innovation often entails—difficult but rewarding. IKEA’s innovative spirit, which has been central to its success for over 80 years, is driven by a commitment to improving the customer experience through constant transformation.

IKEA's journey has included monumental innovations like the flat-pack, which revolutionised the retail industry, allowing customers to self-assemble products and keep prices low. Marlein also highlighted IKEA's foray into omni-channel retailing, which meets the needs of today’s consumers who seek seamless integration between online and in-store shopping experiences.

Sustainability and Circularity: A Commitment to People and Planet

As part of IKEA's values-driven strategy, sustainability is paramount. Marlein stressed that the future of retail hinges on making responsible, environmentally-friendly decisions. IKEA is committed to reducing its environmental impact, including achieving zero-emission home deliveries and transitioning to renewable energy. This commitment to both people and the planet is at the heart of IKEA’s corporate ethos, aligning with the founder’s belief that "it is good business to be a good business."

The increasing challenge of delivering products to urban areas with rising traffic congestion and environmental restrictions also plays a significant role in shaping IKEA’s future strategy. Marlein discussed the expected rise in delivery traffic and the importance of planning for zero-emission zones in cities worldwide, which is a key area of focus for IKEA’s innovation team.

The Future of Retail: Technology and Convenience

Looking to the future, IKEA is exploring new technologies like drone and robot deliveries to keep pace with consumer expectations. Urbanisation, technological advances, and the desire for instant, convenient delivery options are driving IKEA’s innovation process. Marlein explained that IKEA’s approach focuses on collaboration, creativity, and curiosity to fuel the development of impactful solutions for tomorrow’s retail environment.

To address the growing demand for more efficient delivery methods, especially for large and bulky items, IKEA is piloting various solutions in the UK and Belgium. The company aims to enhance customer convenience while maintaining affordability and sustainability—a delicate balance that requires constant innovation.

Embracing Failure and Learning from Experience

One of the core takeaways from Marlein's presentation was the importance of creating a culture that encourages experimentation. She shared that for innovation to thrive, teams need to be allowed to fail, learn, and try again. IKEA’s "innovation funnel" methodology helps the company select the most promising ideas by testing and refining concepts until they are ready for deployment.

Marlein personal takeaway from her role is the ability to push boundaries while having the freedom to fail in a safe environment. This mindset is essential for developing new solutions that meet both business objectives and customer needs.

Key Takeaways for Innovation and Sustainability

Marlein's closing message encapsulated the essence of IKEA’s innovation strategy:

• Stay true to your values and purpose; they guide decision-making and ensure that innovations align with long-term goals.
• Be open to change and always prioritise what is best for customers and co-workers.
• Foster an environment where experimentation is encouraged, and failure is seen as an opportunity for growth.
• Set ambitious goals, such as zero emissions, and strive for them, even when the path seems difficult. Without these hard goals, progress would be unattainable.

By blending values-driven innovation with a commitment to sustainability, IKEA continues to shape the future of retail, striving to remain relevant and affordable for the many people they serve.

Final Thoughts

As the retail landscape rapidly evolves, staying true to core values while embracing technological advancements is key to success. IKEA’s approach to innovation, focusing on sustainability, affordability, and customer experience, serves as an example for other businesses looking to navigate the complexities of modern retail.