IKEA has always been a household name and part of many of our childhoods. As they continue to expand and find innovative ways to give their customers thousands of solutions for their home, they have also found ways to keep us interested and engaged. We interviewed Mr. Marino Maganto, CEO of IKEA for Kuwait, Jordan, and Morocco, to discuss how they have continued to be competitive, their current campaign as well as the future plans for IKEA in Kuwait.

The world of home furniture as we know it today wouldn’t be the same without IKEA. Throughout the years, they have consistently thrived to give us the best prices, quality, and experience in everything they do. Whether you’re just looking for a small bedside table, or to completely furnish your new home, IKEA always has the solutions that you’re looking for. When we sat with Mr. Marino Maganto, we talked about the Reduction of prices on thousands of IKEA solutions, the “Bring on the Mess” campaign, and their expansion in the Kuwait market.

Why is it important for IKEA to reduce prices?

There is a challenge on a global perspective today, and we have noticed that people have lost quite a bit of buying power. We need to have a range today that’s more affordable than the past. In order to continue lowering prices from a long-term perspective, we will also be able to be in more homes, provide home furnishing solutions of high quality, so that everybody can have a home they love and aspire to.

How is IKEA able to reduce prices every year amid the global economic situation?

IKEA is a production oriented retailer, which means that we fixed the prices that we want to retail then we buy the volumes. This allows us to get the cost price that we need to be able to produce or sell at that retail price. Of course, since we are committing to volumes, we are committing to making sure that we are putting customer favorites as a priority. We want the most important products to be the most affordable ones. The products that people love, whether it’s a certain series of mattresses, wardrobes and especially PAX, which is one of the biggest drivers. We have to commit to a certain level of quality quantities and not amend the range that people have fallen in love with.

Do these price reductions affect quality and durability?

It’s not that we are buying lower quality products. We still give the same guarantees and the same high-quality products that we always have. Only the price has changed and in some cases, we have really gone to the extreme of a 30% price investment, so that the prices are 30% less than they were just last year.

This is a long-term commitment, it isn’t an offer or promotion which is going to last a few months. These prices will be there for the full year and then at the end of the year, we always attempt to lower the price even more on the customer favorites. We have decreased the prices of approximately 1,500 solutions out of our 10,000 items.

Why is the focus on “Storage Across the Home”?

[Marino shuffled excitedly] Bring on the mess! I love this!

We all have certain areas of the home which are a bit messy. “Bring on the Mess” talks about storage. One part is for your home and the other big area is the socializing aspect. Whether it’s the living room or your private space, you want to create a little hub or haven that is your safe space. 

We challenged our customers to bring the mess they have in whatever part of the home to prove that we can provide a solution for every single area of the home and help you live a more organized life. We know that most of the stress and arguments happen because of lack of storage, and we want to bring harmony and organization to families in all parts of the home.

What kind of solutions do IKEA offer for the different areas of the home? 

There was a lot of time spent developing the range based on needs. Through home visits, we were able to understand the solutions they have and the ones that they need as well as their dreams, aspirations, and requirements. This has been a very long process, it included designing and visiting the factory to see how it can be produced in a more sustainable way while keeping it efficient and keeping the costs low. 

The ’obvious’ solutions don’t interest me. We are here to create ‘wow’ moments, things that people never thought about, such as a foldable tray that you can have your breakfast on but also can hold your tablet or smartphone. Or even a side lamp that includes wireless charging for your smartphone. That’s what we aim to create and solve for our customers. We want to create those moments, solutions that nobody thought about, to solve everyday problems and needs. 

The new customer meeting points are in the southern areas of Kuwait. Why?

There was big development with Khiran coming up, and we were very happy to be part of the first hybrid outlet mall in the country. Same with Subahiya at The Warehouse Mall and we needed a big store to cover the south area and reach the customers in those areas. This is part of a long-term expansion, and there is a lot of work behind the scenes to plan it. ­

Now, our focus is on the north and we are currently studying it. Jahra, Mutla’a and areas there that would be good for us to expand into. We need to look into what’s the correct format, size and all the required details which are being studied.

How do you see the home furnishing market performance in Kuwait? Why?

We have to look at this in terms of pre-COVID and post-COVID. Pre-COVID, home was home. It was a place to sit back and relax. However, we really started going deep into homes with the lockdown, and we were forced to spend most of our time in that space. We identified different needs and areas that were not as functional as we would like, which called for a radical change, since many people began working from home completely or a hybrid perspective. Before COVID, we went to work daily but after, there is more of a balance with working from home or from the office. Living rooms became offices for a few days a week and therefore, we need versatile furniture so that we can also host friends and family in that same space.

There has been a big movement in our homes, and it is still the most important place for us and will continue to be so in the future. Things have changed, and we have been part of that as well. 

What are your future plans in Kuwait?

We are looking into expansion in the northern areas of the country. In addition, we are also aiming to become a truly omnichannel retailer. Not only will it be e-commerce and physical units but how can an individual consumer identify and define how they want to interact with the brand? The challenge here is moving between channels. As a consumer, how can they know that I’m the same person on Instagram as well as the one who bought the sofa in-store yesterday and was on the website the day before and registered for the newsletter? We aim to get to that point of who you are and how you’re interacting with us so that your experience is seamless. Even if you add something to your cart online and scanned an item in-store, you can pay at once through just one channel where everything is there. However you want, wherever you want and in whichever channel you want.

We asked Mr. Maganto if there was anything else he wanted to add, to which he said, “Bring on the Mess!” and that’s what it’s all about at IKEA. Bring on the mess, bring on your issues, bring on the biggest problems you’re having at home because nothing is too big for them to solve. With an incredible range of items, there surely is something for everyone, and they are only continuing to expand even more. 

Level up your life with IKEA by visiting IKEA The Avenues, IKEA 360, IKEA Assima Mall, IKEA Khairan, IKEA The Warehouse or shopping online at www.IKEA.com.kw. For more information, please call 184 0408 or follow @IKEAKuwait on Instagram.